Will seek the way to block imported steel

VCN – The Vietnam Competition Authority (Ministry of Industry and Trade) will hold a meeting with importers and relevant authorities to make a plan for dealing with imported steel from abroad which is suspected of evading trade safeguards taxes.
will seek the way to block imported steel Steel production sees strong growth in October
will seek the way to block imported steel Vietnamese steel faces anti-dumping lawsuits
will seek the way to block imported steel Tax evasion “trick” makes it difficult for Vietnamese goods

will seek the way to block imported steel According to VSA, coil steel with code 7213.91.90 has chemical ingredients and mechanical properties which can be used as imported coil steel are subject to trade safeguards taxes. Photo: internet.

On 18-10-2016, the Vietnam Competition Authority received Official Dispatch No. 71/HHTVN of the Viet Nam Steel Association on the status of imported steel from foreign countries into Viet Nam and raising a question about evasion of safeguards taxes with some steel billet and long steel items, in particular for coil steel products with HS code of 7213.91.90.

In order to provide a basis for plans to deal with this issue, the Vietnam Competition Authority held a meeting on 19/12/16 with local importers and relevant authorities including representatives of Viet Nam Competition Authority, Heavy Industry Department, Vietnam Steel Association (VSA) and concerned importers.

According to VSA, on 18-7, the Ministry of Industry and Trade issued Decision No. 2968/QD-BCT on the application of formal safeguard measures for steel billet and long steel imported into Vietnam, in that, long steel products (bar steel and coil steel) including HS codes of 7213.10.00, 7213.91.20, 7213.20.31, 7214.20.41, 7227.90.00, 7228.30.00 and 9811.00.00 with safeguard tariff of 15.4% from 2-8-2016 to 21-3-2017.

The application of safeguard taxes had a positive impact on production and the business situation of domestic enterprises. By the end of the first 9 months of 2016, the growth in production and sales of VSA members respectively was 22.4% and 24% over the same period last year.

However, by monitoring the import situation, VSA recognized an existed phenomenon of evading taxes by declaring a switched HS code.

Specifically, the amount of imported coil steel under HS codes which was subject to trade safeguards taxes in the first 9 months of 2016 decreased significantly, and only accounted for 29% over the same period and 25% compared with 2015.

But imported coil steel under HS codes which are not subject to tax (HS code of 7213.91.90) increased sharply, especially from April when the decision of imposing temporary safeguard taxes was applied.

Compared with 2015 and the first quarter of 2016, the amount of steel with this HS code had grown many times, particularly in September, the import figure had risen to 120,640 tones. Total imports in the first 9 months of 2016 of this item increased by nearly 14 times over the same period last year. At this pace, the volume of import in October was 100,000 tons.

According to VSA's analysis, coil steel with HS code of 7213.91.90 has chemical ingredients and mechanical properties which can meet the requirement to use as imported coil steel are subject to trade safeguards taxes.

Moreover, enterprises are switching to this HS code to have the tax rate of 3% compared to 15.4% of 7227.90.00 HS code, 30.4% for 7213.10.00 HS Code and 35.4% for HS code 7213.91.20.

Thus, we can see the behavior of trade safeguards tax evasion from the HS code which was subject to a different level of import tax.

will seek the way to block imported steel

Tax evasion of safeguard through import of steel

VCN- In order to tackle problems of tax evasion of safeguard for imported steel by changing tax ...

Beside the above HS code of 7213.91.90, some other HS codes including 7213.99.90, 9839.10.00 and 9839.20.00 are likely to be declared by importers. These HS codes are reassembly described as HS code of 7213.91.90. They are hot-rolled coil steel, smooth rounded and just have the difference in diameter (7213.91.90 and 9839.10.00 HS code are below 14 mm and 7213.99 .90, 9839.20.00 HS code are above 14 mm in diameter).

By Phan Thu / Tuan Cuong

Related News

Increasing consumption demand, steel enterprises have many opportunities

Increasing consumption demand, steel enterprises have many opportunities

VCN - Vietnam’s steel industry is benefiting from growing domestic and export demand for steel. However, moving into 2025, the industry still faces many challenges.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
Achievements in revenue collection are a premise for breakthroughs in 2025

Achievements in revenue collection are a premise for breakthroughs in 2025

VCN – Motivated by great efforts and effective implementation of solutions, as of December 10 the total State revenue from imports and exports saw a year-on-year increase of 13.8% to VND397,861 billion, meeting 106.1% of the estimate. The revenue us estimated to reach VND420,000 billion, meeting 112 % of the estimate, up 13.9% over the same period in 2023. The achievements in 2024 are a premise for a breakthrough in revenue collection in 2025.

Latest News

Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN – Vietnam’s economy is forecast to grow by 6.7% in 2025, Standard Chartered Bank reported.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.
Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.

More News

Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.
Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
General Secretary urges immediate return to work after Tết

General Secretary urges immediate return to work after Tết

Party General Secretary Tô Lâm praised efforts to ensure a well-organised holiday, but stressed the need for authorities and businesses to return to work promptly. He warned against extended celebrations and called for full focus on meeting February and first-quarter deadlines.
Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

PM Phạm Minh Chính expressed his hope for continued support from the Party Central Committee, its Politburo and Secretariat, current and former leaders, the National Asembly, and the Việt Nam Fatherland Front for the Government to fulfil its tasks, creating momentum for the whole country to make development breakthrough and enter the era of the nation’s rise.
Việt Nam’s manufacturing PMI slips into contraction in January

Việt Nam’s manufacturing PMI slips into contraction in January

Business conditions in the Vietnamese manufacturing sector weakened in the first month of 2025 with drops in both output and new orders.
Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

The past 95 years have formed a glorious and pride-worthy period for the Vietnamese people as they have gradually eliminated poverty and backwardness, steadily moving towards a wealthier and happier future.
Great opportunities for cooperation with Việt Nam in 2025: Malaysian Ambassador

Great opportunities for cooperation with Việt Nam in 2025: Malaysian Ambassador

Malaysian Ambassador to Việt Nam Dato’ Tan Yang Thai says he believes that 2025 will bring even greater opportunities for cooperation between the two countries in his recent interview with the Vietnam News Agency.
Structural reform, innovation to drive Việt Nam

Structural reform, innovation to drive Việt Nam's sustainable development: EuroCham chair

Bruno Jaspaert, chair of EuroCham Vietnam told the Vietnam News Agency in a recent interview that Việt Nam continued to stand out as a highly attractive destination for foreign investors, including those from Europe.
Read More

Your care

Latest Most read
Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN - Standard Chartered's report also forecasts Vietnam's economic growth at 7.5% in the first half of the year and at 6.1% in the second half of the year compared to the same period last year.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.
Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Mobile Version