China's minister of trade Zhong San said starting tomorrow will impose anti-dumping duties on some stainless steel products imported from Indonesia, European Union, Japan, and South Korea - Photo by Chinese Ministry of Trade

JAKARTA (TheInsiderStories) – China said that starting tomorrow will impose anti-dumping duties on some stainless steel products imported from Indonesia, European Union (EU), Japan, and South Korea. The decision has been taken after an anti-dumping after a complaint was filed by the state-owned Taigang Shanxi Stainless Steel Co. Ltd.

“Investigative agents have made the final decision that there is the disposal of the products being investigated and have caused substantial damage to the industry in China,” the trade minister Zhong san said in an official statement released today.

Last year, the Ministry of Commerce of the People’s Republic of China (MOFCOM) received an application for anti-dumping investigation formally submitted by Shanxi, on behalf of domestic industry of stainless steel billet and hot-rolled stainless steel plate.

The Applicant requested for an anti-dumping investigation against imports of stainless steel billet and hot-rolled stainless steel plate (coil) originating in the EU, Japan, the Republic of Korea and Indonesia.

At that time, MOFCOM decided based Article 16 of the Anti-dumping Regulations of China to file an anti-dumping investigation against imports of stainless steel billet and hot-rolled stainless steel plate (coil) originating in the EU, Japan, the Republic of Korea and Indonesia as of July 23.

The imposing of anti-dumping tariffs will take effect from 18.1 percent to 103.1 percent and to be applied to stainless steel billets and hot rolled stainless steel plates from companies in the EU and three Asian countries.

For information, stainless steel billets and hot rolled stainless steel plates are mainly used as raw materials for making cold rolled steel products or used in shipbuilding, containers, trains, electricity and other industries.

According to the China Stainless Steel Association, the country is the world’ largest stainless steel producer by producing 26.71 million tons of non-steel products in 2018, up 2.4 percent from a year ago. Since 2017, the country imported 1.85 million tons of stainless steel products last year, up 53.7 percent.

While in Indonesia, Industry Minister Airlangga Hartarto said the government would continue to protect domestic steel products when the flood of steel imports came from China. Because, after a trade war, Chinese steel began to look for new markets other than the US including Indonesia.

“Of course we impose anti-dumping duties. China itself imposes import duties on stainless steel products from Indonesia. It is conducting an investigation. America itself imposes import duties,” he said last month.

So far the government has also implemented a policy of prohibiting and limiting imported products. This is expected to help reduce steel imports. While, national steel producers regretted the imported steel through Batam Island.

This is considered detrimental to the domestic steel industry because it is not subject to anti-dumping duties, especially for steel plate products. This is not in line with the Agreement on the World Trade Organization Hot Rolled Explanatory Notes which states that BMAD still applies in countries including in free trade and free ports, such as Batam.

Previously, the Ministry of Finance had also extended the period of anti-dumping duties on imported H-type iron and steel products from China. This provision is contained in the Minister of Finance Regulation Number 24 of 2019 concerning the Imposition of Anti Dumping Import Duty on the Import of Products of H Section and I Section of the State of the People’s Republic of China signed March 18, 2019.

Through the regulation, Minister of Finance Sri Mulyani Indrawati explained that anti-dumping duties for these two products were carried out four years ago through Regulation Number 242 of 2015. However, based on the investigation of the Indonesian Anti-Dumping Committee, there are currently still product dumping practices for H section and I section from China.

To that end, the government has again set an anti-dumping import duty of 11.93 percent, in the form of additional general import duties and additional preference import duties based on the scheme of applicable international goods trade agreements. This regulation will be valid again for the next five years, so the imposition of anti-dumping import duties will expire in 2024.

Written by Staff Editor, Email: theinsiderstories@gmail.com

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