Decision No. 1624/QD-BCT

DECISION

ON IMPOSITION OF DEFINITIVE ANTI-DUMPING DUTY ON CERTAIN WELDING MATERIAL PRODUCTS ORIGINATING FROM MALAYSIA, THE KINGDOM OF THAILAND AND THE PEOPLE'S REPUBLIC OF CHINA

MINISTER OF INDUSTRY AND TRADE

Pursuant to the Law on Foreign Trade Management No. 05/2017/QH14 dated June 12, 2017;

Pursuant to the Government's Decree No. 10/2018/NĐ-CP dated January 15, 2018 detailing a number of articles of the Law on Foreign Trade Management regarding trade remedies;

Pursuant to the Government's Decree No. 98/2017/NĐ-CP dated August 18, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to Circular No. 37/2019/TT-BCT dated November 29, 2019 of the Minister of Industry and Trade detailing a number of provisions on trade remedies;

Pursuant to Decision No. 3752/QĐ-BCT dated October 2, 2017 of the Minister of Industry and Trade defining the functions, tasks, powers and organizational structure of the Trade Remedies Authority of Viet Nam;

Pursuant to the Minister of Industry and Trade's Decision No. 947/QĐ-BCT dated March 18, 2021 on the investigation into imposition of anti-dumping measures on certain welding material products originating from the People's Republic of China, the Kingdom of Thailand and Malaysia;

Pursuant to the Minister of Industry and Trade's Decision No. 263/QĐ-BCT dated March 1, 2022 on the extension of the time limit for the investigation into imposition of anti-dumping measures on certain welding material products originating from Malaysia, the Kingdom of Thailand and the People's Republic of China;

Pursuant to the Minister of Industry and Trade's Decision No. 706/QĐ-BCT dated April 15, 2022 on the imposition of provisional anti-dumping duty on certain welding material products originating from Malaysia, the Kingdom of Thailand and the People's Republic of China;

At the request of the Director General of the Trade Remedies Authority of Viet Nam,

HEREBY DECIDES:

Article 1. To impose definitive anti-dumping duty on certain welding material products classified under HS codes 7217.10.10, 7217.30.19, 7217.90.10, 7229.20.00, 7229.90.20, 7229.90.99, 8311.10.10, 8311.10.90, 8311.30.91, 8311.30.99 and 8311.90.00, originating from Malaysia, the Kingdom of Thailand and the People's Republic of China (case No. AD15). Details are set out in the Notice attached to this Decision.

Article 2. This Decision takes effect from August 20, 2022.

Article 3. The Chief of the Ministry Office, the Director General of the Trade Remedies Authority of Viet Nam, heads of relevant units and related parties are responsible for implementing this Decision./.

NOTICE

IMPOSITION OF DEFINITIVE ANTI-DUMPING DUTY ON CERTAIN WELDING MATERIAL PRODUCTS ORIGINATING FROM MALAYSIA, THE KINGDOM OF THAILAND AND THE PEOPLE'S REPUBLIC OF CHINA (Attached to Decision No. 1624/QĐ-BCT dated August 15, 2022 of the Minister of Industry and Trade)

1. Goods subject to definitive anti-dumping duty

Goods subject to definitive anti-dumping (AD) duty comprise flux-coated 308 stainless steel welding rods and solid steel welding wire without flux core, originating from Malaysia, the Kingdom of Thailand (Thailand) and the People's Republic of China (China).

1.1. Flux-coated 308 stainless steel welding rods

a) Name and basic characteristics

Product name: flux-coated 308 stainless steel welding rods.

Flux-coated 308 stainless steel welding rods have the following basic characteristics:

- The rod core is 308 stainless steel;

- The steel core diameter is from 2.0 mm to 4.0 mm with a tolerance of +/- 0.2 mm;

- The rod is flux-coated.

b) HS codes and current import duty rates

Flux-coated 308 stainless steel welding rods subject to definitive AD duty are classified under the following HS codes: 8311.10.90, 8311.30.99, 8311.90.00.

The Ministry of Industry and Trade may amend or supplement the list of HS codes of goods subject to definitive AD duty to match the description of the goods under investigation and other changes (if any).

c) Goods excluded from the definitive AD measure

Goods satisfying any of the following conditions are excluded from the scope of the definitive AD duty on flux-coated 308 stainless steel welding rods:

- Rods whose core is not 308 stainless steel;

- Rods whose 308 stainless steel core diameter is greater than 4.2 mm or smaller than 1.8 mm;

- Rods that are not flux-coated.

1.2. Solid steel welding wire without flux core

a) Name

Product name: solid steel welding wire without flux core.

Solid steel welding wire without flux core has the following basic characteristics:

- The wire core is steel (excluding stainless steel);

- The steel core diameter is 5.0 mm or less;

- The wire is copper-plated or unplated;

- The steel core contains the following elements by weight: carbon (C) from 0.04% to 0.2%, phosphorus (P) not exceeding 0.03%, sulphur (S) not exceeding 0.035%.

b) HS codes and current import duty rates

Solid steel welding wire without flux core subject to definitive AD duty is classified under the following HS codes: 7217.10.10, 7217.30.19, 7217.90.10, 7229.20.00, 7229.90.20, 7229.90.99, 8311.10.10, 8311.10.90, 8311.30.91, 8311.30.99, 8311.90.00.

The Ministry of Industry and Trade may amend or supplement the list of HS codes of goods subject to definitive AD duty to match the description of the goods under investigation and other changes (if any).

c) Goods excluded from the definitive AD measure

Goods satisfying any of the following conditions are excluded from the scope of the definitive AD duty on solid steel welding wire without flux core:

- Wire whose core is stainless steel or a base metal other than steel;

- Wire whose steel core diameter is greater than 5.0 mm;

- Wire whose steel core contains any of the following elements by weight: carbon (C) above 0.2%, or phosphorus (P) above 0.03%, or sulphur (S) above 0.035%, or chromium (Cr) of 8% or more;

- Flux-cored welding wire or wire whose core is a fluxing agent;

- Wire plated with a base metal other than copper;

- Welding wire in bars or rods of a length of 500 mm or less.

2. Final determination

The investigating authority's final determination establishes the existence of: (i) dumping of the imported goods under investigation; (ii) material injury to the domestic industry; and (iii) a causal link between the dumped imports and the material injury to the domestic industry.

3. Definitive AD duty rates

3.1. For flux-coated 308 stainless steel welding rods

3.2. For solid steel welding wire without flux core

4. Effect and duration of the definitive AD duty

a) Effect

The definitive AD duty takes effect from the effective date of the Decision imposing the definitive AD duty.

b) Duration

The definitive AD duty applies for 05 (five) years from the effective date of the Decision imposing the definitive AD duty (unless changed or extended under another Decision of the Minister of Industry and Trade).

5. Procedures and dossiers for inspection and application of the definitive AD duty

5.1. General provisions

To establish the origin of imported goods subject to the AD duty, the customs authority shall inspect the proof of origin. The proof of origin comprises:

a) A certificate of origin (C/O); or

b) Origin self-certification documents in accordance with:

- The Comprehensive and Progressive Agreement for Trans-Pacific Partnership;

- The Regional Comprehensive Economic Partnership Agreement;

- The Free Trade Agreement between the Socialist Republic of Viet Nam and the European Union;

- The Free Trade Agreement between the Socialist Republic of Viet Nam and the United Kingdom of Great Britain and Northern Ireland; and

- The ASEAN Trade in Goods Agreement.

The specific inspection is as follows:

5.2. For flux-coated 308 stainless steel welding rods

Step 1: Inspection of the proof of origin

- Case 1: Where the customs declarant fails to submit a proof of origin, the definitive AD duty rate of 36.11% applies.

- Case 2: Where the customs declarant submits a proof of origin from a country or territory other than Malaysia, Thailand and China, no definitive AD duty is payable.

- Case 3: Where the customs declarant submits a proof of origin from Malaysia, Thailand or China, proceed to Step 2.

Step 2: Inspection of the producer's (original) quality certificate (hereinafter referred to as the producer's certificate)

- Case 1: Where (i) the customs declarant fails to submit the producer's certificate, or (ii) submits a producer's certificate but the producer's name thereon does not match any producer named in Column 1 of Section 3.1 of this Notice, the definitive anti-dumping duty is payable at the following rates:

+ 12.78% for goods with a proof of origin from Malaysia;

+ 36.11% for goods with a proof of origin from Thailand; and

+ 11.43% for goods with a proof of origin from China.

- Case 2: Where the customs declarant submits the producer's certificate and the producer's name thereon matches a producer named in Column 1 of Section 3.1 of this Notice, proceed to Step 3.

Step 3: Inspection of the exporter's name

- Case 1: Where the exporter's name (based on the sales contract and commercial invoice) matches the producer named in Column 1, the corresponding row rate in Column 2 of Section 3.1 of this Notice applies.

- Case 2: Where the exporter's name (based on the sales contract and commercial invoice) does not match the producer named in Column 1 of Section 3.1, the definitive anti-dumping duty is payable at the following rates:

+ 12.78% for goods with a proof of origin from Malaysia;

+ 36.11% for goods with a proof of origin from Thailand; and

+ 11.43% for goods with a proof of origin from China.

5.3. For solid steel welding wire without flux core

Step 1: Inspection of the proof of origin

- Case 1: Where the customs declarant fails to submit a proof of origin, the definitive AD duty rate of 36.56% applies.

- Case 2: Where the customs declarant submits a proof of origin from a country or territory other than Malaysia and China, no definitive AD duty is payable.

- Case 3: Where the customs declarant submits a proof of origin from Malaysia or China, proceed to Step 2.

Step 2: Inspection of the producer's (original) quality certificate (hereinafter referred to as the producer's certificate)

- Case 1: Where (i) the customs declarant fails to submit the producer's certificate, or (ii) submits a producer's certificate but the producer's name thereon does not match any producer named in Column 1 of Section 3.2 of this Notice, the definitive anti-dumping duty is payable at the following rates:

+ 34.37% for goods with a proof of origin from Malaysia; and

+ 36.56% for goods with a proof of origin from China.

- Case 2: Where the customs declarant submits the producer's certificate and the producer's name thereon matches a producer named in Column 1 of Section 3.2 of this Notice, proceed to Step 3.

Step 3: Inspection of the exporter's name

- Case 1: Where the exporter's name (based on the sales contract and commercial invoice) matches the producer named in Column 1, the corresponding row rate in Column 2 of Section 3.2 of this Notice applies.

- Case 2: Where the exporter's name (based on the sales contract and commercial invoice) does not match the producer named in Column 1 of Section 3.2, the definitive anti-dumping duty is payable at the following rates:

+ 34.37% for goods with a proof of origin from Malaysia; and

+ 36.56% for goods with a proof of origin from China.

6. Difference between AD duty rates

In this case, the producers and exporters named below are determined to have a difference between the definitive AD duty rate and the provisional AD duty rate for solid steel welding wire without flux core:

Importers of goods of Kiswel Sdn. Bhd are refunded the duty difference already paid.

7. Subsequent procedures of the case

Pursuant to Point b, Clause 1, Article 16 of Circular No. 37/2019/TT-BCT dated November 29, 2019 of the Minister of Industry and Trade, the investigating authority will announce the receipt of exemption request dossiers after the Ministry of Industry and Trade issues the decision imposing the definitive trade remedy.

1 Products under the above HS codes are currently subject to the anti-circumvention measure applicable to steel coil and steel wire products

2 Products under the above HS codes are currently subject to the anti-circumvention measure applicable to steel coil and steel wire products