Vietnamese steel pipes may be examined for tax evasion in the United States

DNHN - American companies have accused Vietnam of importing hot rolled steel (HRS), which is the primary raw material for the production of steel pipes, from China and South Korea, and then processing and exporting the HRS as steel pipes to circumvent the respective trade remedy tax that the United States is applying to China and South Korea.

 The Trade Remedies Administration (Ministry of Industry and Trade) has announced that the US Department of Commerce (DOC) has just received a lawsuit requesting an investigation into trade remedy tax evasion involving a variety of square and rectangular steel pipe products made with welded round carbon steel.

These items are majority from the code HS codes 7306.61 and 7306 of the Vietnam-origin items. Plaintiffs in this action include significant US steel pipe producers (such as Nucor Corporation, Bull Moose Tube, and Maruichi Steel Corporation...).

American companies accuse Vietnam of importing hot rolled steel (HRS), which is the primary raw material for the production of steel pipes, from China and Korea, and then transforming it into steel pipes and exporting them to the United States to circumvent the trade remedy tariffs that the United States has imposed on China and South Korea.

Since 2008, the United States has imposed anti-dumping/anti-subsidy duties on square/rectangular steel pipes and welded round carbon steel pipes imported from China, with anti-dumping duties of 69, respectively 20 - 85.55 per cent and 249.12 - 264.64 per cent and anti-subsidy tax rates of approximately 29.57 - 615.92 per cent and 2.17 per cent - 200.58 per cent.

According to data from the US International Trade Commission (ITC), the total export value of Vietnam's examined items to the US in 2021 will be approximately 57.6 million USD.

According to US laws, the DOC will issue a decision to commence the case within 30 days of receiving the application (which can be extended).

Consequently, the Trade Remedies Administration suggests that relevant manufacturers/exporters assess their export operations of investigated steel pipe goods to the United States; study the US tax evasion investigation processes and collaborate with the Bureau throughout the case.

The Department will collaborate with the Vietnam Steel Association to examine and work directly with relevant manufacturing and exporting firms to determine the status of production and exports to the United States, and to avoid evasion of indications and behaviours (if any).

PV