Commerce Finds AD/CVD Circumvention by Vietnamese Cold-Rolled, Corrosion-Resistant Steel

As in its preliminary determinations, Commerce found that cold-rolled steel and hot-rolled steel are being imported from South Korea and Taiwan into Vietnam and being used to make corrosion-resistant steel. Likewise, hot-rolled steel is being imported into Vietnam from South Korea and being processed into cold-rolled steel. Both processes are so minor and insignificant as to constitute circumvention of the AD/CV duty orders on the products as exported from South Korea and Taiwan, Commerce said.

For all such merchandise from Vietnam, regardless of the exporting company, Commerce directed CBP to continue to suspend liquidation and require cash deposits at the applicable rates for entries on or after Aug. 2, 2018, the date this anti-circumvention inquiry was initiated (see 1808010030). Importers and exporters of Vietnamese corrosion-resistant steel not made from South Korean or Taiwanese cold-rolled or hot-rolled steel, and importers of cold-rolled steel from Vietnam not made from South Korean hot-rolled steel, must prepare and maintain certifications (detailed in the notice) in order to avoid suspension and AD/CVD cash deposit requirements.

Commerce has already made similar findings in a recent anti-circumvention inquiry on imports from Vietnam of corrosion-resistant steel and cold-rolled steel made from Chinese cold- and hot-rolled steel (see 1805220030). To prevent AD/CVD evasion, Commerce will use the higher AD/CVD rates on China if no certification is on file to say the goods are not made from Chinese, South Korean or Taiwanese inputs. For corrosion-resistant steel, Commerce will use rates on South Korea, which are higher than rates on Taiwan, if the certification only says the merchandise is not made from Chinese inputs.

Commerce also found several companies ineligible to participate in these certification processes. For cold-rolled steel from Vietnam, 190 Steel Pipe Co. Ltd., Central Vietnam Metal Corp., Hoa Phat Steel Pipe Co., POSCO E&C, POSCO SS Vina, POSCO VST, VSC – POSCO Steel Corporation, Prima Commodities Co., Southern Steel Sheet Co., Ltd., Tan Thanh Quyen Steel Co., Thai Nguyen Iron and Steel Corp., Thong Nhat Flat Steel, Van Loi Co. Ltd., Vietnam Germany Steel JSC, Vietnam Steel Corp., Vietnam Steel Pipe, Vina Kyoei Steel Ltd., Vinda Iron & Steel Co. Ltd., and VNSTEEL – Phu My Flat Steel Co. are automatically subject to higher Chinese AD/CV duty rates, as is any merchandise produced by them and exported by another company.

For corrosion-resistant steel, the following companies are ineligible to certify their goods were not made from Taiwanese inputs: 190 Steel Pipe Co. Ltd.; Chinh Dai Steel Limited; Hoa Phat Steel Pipe; Perstima Viet Nam; Prima Commodities Co.; Thong Nhat Flat Steel; Trung Nguyen Steel Co.; Vietnam Germany Steel JSC; Vietnam Steel Corp.; Thai Nguyen Iron and Steel Corp.; Vina Kyoei Steel Ltd.; and Vietnam Steel Pipe.

Also, for corrosion-resistant steel, the following companies are ineligible to certify their goods were not made with South Korean inputs: 190 Steel Pipe Co., Ltd.; Chinh Dai Steel Limited; Dai Thien Loc Corporation; Formosa Ha Tinh Corporation; Hoa Phat Steel Pipe Co.; Hoa Sen Group; Perstima Viet Nam; Prima Commodities Co.; Thai Nguyen Iron and Steel Corp.; Thong Nhat Flat Steel; Ton Dong A Corp.; Trung Nguyen Steel Co, Ltd.; Vietnam Germany Steel JSC; Vietnam Steel Corp.; Vietnam Steel Pipe; Vian Kyoei Steel Ltd.; Vina One Steel Manufacturing; NS BlueScope Vietnam Ltd.; and Southern Steel Sheet Co., Ltd.

(Federal Register 12/26/19)