The Mexican government modified the final resolution of the antidumping investigation on imports of coated flat steel originating in Vietnam, published on February 24, 2023, now including the company Maruichi Sun Steel Joint Stock Company (Sunsco).
“A definitive compensatory quota of 2.06 percent is imposed on imports of coated flat steel originating in Vietnam, coming from the exporting producer Maruichi,” the Ministry of Economy (SE) published today in the official gazette of the Mexican government (DOF).
The antidumping duties decreed on the Binh Duong-based company, Sunsco, were the result of the lawsuit initiated by the companies Ternium México and Tenigal (joint venture between Ternium and Nippon Steel Corporation) against the resolution of February 24. At that time, antidumping duties of 6.40% were decreed for the company Nam Kim Steel Joint Stock Company, 7.00% for the company Hoa Sen Group Joint Stock Company, 8.29% for Pomina Flat Steel Joint Stock Company, 10.32% for Hoa Phat Steel Sheet Co.
The Mexican trade authority also decreed antidumping duties of 10.84% on the company Ton Dong A Corporation and the same percentage for the rest of the producing and exporting companies. At the time, the Mexican government said Sunsco was exempt because its exports to Mexico “were not carried out under conditions of price discrimination.” The latter motivated Ternium and Tenigal's legal appeal.
The product in question is the one referring to tariff items 7210.30.02, 7210.41.01, 7210.41.99, 7210.49.99, 7210.61.01, 7210.70.02, 7212.20.03, 7212.30.03, 7212.40.0 4, 7225.91.01 , 7225.92.01 and 7226.99.99 of the Law of General Import and Export Taxes (TIGIE).
The product also enters Mexico under the Eighth Rule, through the Eighth Rule through tariff items 9802.00.01, 9802.00.02, 9802.00.03, 9802.00.04, 9802.00.06, 9802.00.07, 9802.00.10 , 9802.00.13, 9802.00.15 and 9802.00.19 of the TIGIE.
Ternium and Tenigal strongly criticized the errors for which the Ministry of Economy exempted Maruichi from tariffs in February.
The dissatisfied companies argued that the price of hot rolled sheet represents between 69 and 79% of the cost of coated flat steels and the price of cold rolled sheet represents between 84 and 90% of the cost of the final product. This means that Vietnam's exporting producers source raw materials from suppliers with dumping practices. They buy raw materials under artificially advantageous conditions, which allows them to offer the final product at artificially low prices and thus the practice of dumping is masked.
According to the Mexican government report, the Mexican unit of the Japanese company Mitsui & Co, said that Ternium, Galvasid, Tyasa and Lámina y Placa Comercial of the Villacero Group allocate their production of coated flat steels mainly to companies in the construction and home appliances. For their part, Tenigal, Nucor JFE Steel México and Posco México market their production to companies in the automotive industry.