JAKARTA (TheInsiderStories) – The United States (US) imposes import duties of more than 400 percent on steel imports from Vietnam, due to certain products produced in South Korea and Taiwan are sent to Vietnam for processing, before being exported to the US as products of corrosion-resistant steel and rolled steel cold, according to the US Commerce Department on Wednesday (07/03).
The department said several shipping product businesses from the Southeast Asian country are considered to simply avoid levies in escalating further tensions between the two trading partners.
Customs officials have been ordered to collect cash deposits at rates as high as 456.23 percent on imported steel products produced in Vietnam using materials from South Korea and Taiwan.
US-Vietnam trade relations are indeed strong after the country benefited from tensions between President Donald Trump and Chinese President Xi Jinping since March 2018.
So far, Vietnam is trying to reduce its trade surplus with the US and has been cracking down on Chinese producers who are redirecting their goods through Southeast Asian countries to be exported to the US to cut higher tariffs.
The US Embassy in Hanoi said this week in talks with authorities and hoped “Vietnam took steps in the near future to deal with our problems constructively.”
In addition to Vietnam, US Customs and Border Protection is also investigating six American companies for allegedly avoiding anti-dumping duties when importing and incorrectly grouping Chinese-made carbon steel pipe fittings through Cambodia, according to the US Embassy in Phnom Penh.
Turning to other ASEAN countries, especially Indonesia, there has been no strict tariff sanctions between the two countries. Trump seems to be in a warm relationship with the two-term elected president Joko Widodo.
Last year, Indonesia’s economic diplomacy to the US came to fruition when the US gave an exception to 19 carbon and alloy and stainless steel products from steel import tariffs of 25 percent.
Previously, Indonesia also received an exception for 142 applications of Carbon and Alloy steel products with a total volume of more than 6,976 tons and 1 application for Aluminum Sheet of 1,680 tons.
However, there are currently 12 requests for exclusion of Indonesian steel products with a quantity of more than 336,688 tons and 276 requests for exclusion of Indonesian aluminum products with a quantity of more than 367,351 tons which have not received a decision from the US Government.
While to limit the flow of steel product imports from China, where post-trade war, Chinese steel began to look for new markets other than the US including Indonesia, the government will protect domestic steel products when the flood of steel imports from China is imposed by imposing anti-dumping duties.
China itself carries import duties on stainless steel products from Indonesia. Likewise with the US which imposes import duties.
Therefore, it is expected that the anti-dumping import duty, import duty, security duty and retribution import duty for steel can be applied in the Batam area and other free trade areas to create a healthy competitive climate.
Written by Staff Editor: firstname.lastname@example.org