Antidumping, Galvanized Steel from Vietnam, CPTPP, Mexico, Duties

Final Antidumping Determination on Galvanized Steel From Vietnam

On February 24th, 2023, the Ministry of Economy published the Final Antidumping Determination in the investigation on coated flat steel from Vietnam. In its determination, the authority established the existence of dumping and material injury to the domestic production of galvanized steel in Mexico. Therefore, the Ministry of Economy imposed the following:

Beginning of the Antidumping Investigation

On August 30th, 2021, the Ministry of Economy initiated an anti-dumping investigation on galvanized steel from Vietnam, which was published in the Mexican Official Gazette. This is the first anti-dumping investigation against Vietnamese goods in Mexico.

Final Antidumping Determination

Definitive Antidumping Duties

Imports of Hoa Sen Group
7.0% antidumping duty
Imports of Hoa Phat Steel Sheet
10.32% antidumping duty
Imports of Nam Kim Steel
6.40% antidumping duty
Imports of Pomina Flat Steel
8.29% antidumping duty
Imports of Ton Dong A Corporation
10.84% antidumping duty
Imports of Maruichi Sun Steel
Free of antidumping duties
The rest of Vietnam's imports
10.84% antidumping duty
Diapositiva anterior
Diapositiva siguiente

As it can be seen, the definitive antidumping duties are lower than those imposed in the Preliminary Determination. Unlike the Preliminary Determination, the Ministry of Economy discounted the expenses related to scrap in the calculation of the production costs. That is why the Ministry determined the existence of a lower dumping margin for imports of galvanized steel.

VTZ Participation in the Antidumping Investigation on Coated Flat Steel from Vietnam

Thanks to our strong and experience team, VTZ represented numerous exporters and importers from Vietnam. 

Vietnamese exporters of Coated Flat Steel

In this investigation, VTZ represented the exporting companies:

  • Hoa Phat Steel Sheet.
  • Hoa Sen Group.
  • Nam Kim Steel.
  • Ton Dong A Corporation.

The collaborative work between VTZ and these companies allowed the Ministry of Economy to determine a specific dumping margin for each of them.

The Vietnam Steel Association

Furthermore, VTZ was in charge of representing the Vietnam Steel Association in this investigation.

Mexican importers of Coated Flat Steel

VTZ also represented the following importing companies: 

  • Aceros y Overollings de México, S.A. de C.V.,
  • Dufmex, S. de R.L. de C.V.,
  • Hanwa Steel Service Mexicana, S.A. de C.V.,
  • Mitsui de México, S. de R.L. de C.V., and
  • Operadora de Pytsa Industrial, S.A. de C.V.

VTZ work and results

Throughout the investigation, VTZ prepared the information from the exporters and presented arguments on normal value, export price, price adjustments, and costs of production. For instance, our firm was in charge of the scrap discount argument that derived into lower definitive antidumping duties. In addition, VTZ submitted numerous arguments regarding injury, as well as its causal relationship with the investigated imports.

Even though the Ministry of Economy did impose antidumping duties, this result allows Vietnamese exporters to continue exporting to the Mexican market. This is because Vietnam’s exports have a 0% preferential tariff under the CPTPP, while imports of coated flat steel from other origins are subject to the 15% general tariff. Consequently, Vietnamese coated flat steel continues to be more competitive than that of other countries in terms of prices.

……………………………………………………………………………………………………………………………………….

Preliminary Antidumping Determination on Coated Flat Steel from Vietnam

On September 14th, 2022, the Ministry of Economy published the Preliminary Antidumping Determination on galvanized steel. In this determination, the Ministry of Economy preliminarily determined the existence of dumping and injury to the domestic production of galvanized steel in Mexico. Consequently, the Ministry imposed the following provisional antidumping duties:

Provisional Antidumping Duties

Imports of Hoa Sen Group
7.0% antidumping duty
Imports of Hoa Phat Steel Sheet
12.34% antidumping duty
Imports of Nam Kim Steel
6.64% antidumping duty
Imports of Pomina Flat Steel
8.29% antidumping duty
Imports of Ton Dong A Corporation
12.08% antidumping duty
Imports of Maruichi Sun Steel
Free of antidumping duties
The rest of Vietnam's imports
12.34% antidumping duty
Diapositiva anterior
Diapositiva siguiente

……………………………………………………………………………………………………………………………………….

Initiation of Antidumping Investigation

Product Description of the Investigated Product

Flat steel products, carbon or alloyed, resistant to corrosion with steel or non-steel coating. Commonly known as “flat-rolled steel products coated with corrosion-resistant metal or painted”, “hot hipped galvanized”, “certain corrosion-resistant steel products”, “steel sheet metallic coated and prepainted”, “galvanized sheet” or “galvanneal”.

Investigated Galvanized Steel Tariff Items

Accordingly, the investigated galvanized steel is imported under the following Mexican Tariff Items:

7210.30.02, 7210.41.01, 7210.41.99, 7210.49.99, 7210.61.01, 7210.70.02, 7212.20.03, 7212.30.03, 7212.40.04, 7225.91.01, 7225.92.01, and 7226.99.99.

Period of Investigation (Dumping)

The Ministry of Economy determined that the Period of Investigation (POI) is January 1, 2020, to December 31, 2020.

Period of Analysis (Injury)

The Ministry of Economy determined that the Period of Analysis (POI) is January 1, 2018, to December 31, 2020.

The Normal Value in Vietnam

Petitioners submitted a price list as a reference for the Vietnamese market or normal value. In addition, petitioners considered that the galvanized steel sold in the Vietnamese market is not subject to the ordinary course of trade. The Ministry of Economy agreed with petitioners and, thus, agreed with the constructed normal value methodology submitted. 

Listed Exporters of Galvanized Steel from Vietnam

Bach Dang Const.
268 Trn Nguyên Hãn
Nim Ngha, Lê Chân, Hi Phòng
ZIP Code 04713, Vietnam
 
China Steel Sumikin Vietnam
My Xuan A2 IZ, My Xuan Ward
Phu My Town
ZIP Code 78707, BR-VT Province, Vietnam
 
Hoa Sen Group
Floor 3, 183 Nguyen Van Troi St, Ward 10
Phu Nhuan District
ZIP Code 72218, Ho Chi Minh City, Vietnam
 
Lilama
124 Minh Khai Street
Hai Ba Trung District Hanoi
ZIP Code 11619, Vietnam
 
Maruichi Sun Steel Co (Sunsco)
DT743 Road, Dong Tac Quarter
Tan Dong Hiep Ward Di An County
ZIP Code 75311, Binh Duong Province, Vietnam
 
Maruviena
Long Binh Ward, Dist.9
ZIP Code 71217, Ho Chi Minh City, Vietnam
 
Ton Nam Kim – Nam Kim Steel Joint Stock Company
Lot A1, Ð2 Street, Ð?ng An 2
Industrial Park, Thu Dau Mot City
ZIP Code 75115, Binh Duong, Vietnam
 
NS Bluescope Coated Products
9th Floor Vincom Center, 72 Le Thanh Ton Street
District 1
ZIP Code 71006, Ho Chi Minh City, Vietnam
 
Perstima
No 15, VSIP Street 6
Vietnam Singapore Industrial Park (VSIP)
Thuan An City
ZIP Code 75208, Binh Duong Province, Vietnam
 
Posvina Co Ltd
232, Group 11, Quarter 2
Do Xuan Hop Street, Phuoc Long A Ward, District 9
ZIP Code 71210, Ho Chi Minh City, Vietnam
 
Southern Steel Sheet Co (SSSC)
Road No. 9
Bien Hoa I Industrial Park, Bien Hoa, Dong Nai
ZIP Code 76150, Ward An Binh City, Vietnam
 
Ton Dong A Corp.
No. 5, Road No. 5
Song Than 1 Industrial Park, Di An Ward, Di An Town
ZIP Code 75355, Binh Duong Province, Vietnam

Petitioners

Ternium and Tenigal.

Do You Need More Information on the Antidumping Investigation on Galvanized Steel from Vietnam? 

VTZ is a Mexican Law Firm specialized in International Trade with a strong focus on trade remedies, contact our key members today:

Adrian Vázquez

Adrian Vázquez

Managing Partner

More information on Trade Remedies in Mexico?

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