Steel industry urges import duty adjustments

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Steel firms have raised their voice to asks the Ministry of Finance for adjustment to import duties on steel for the reason that low duties lead to huge steel imports, posing threat against domestic production.


According to Dongbang, a steel limited company, with an import duty rate of 5% on stainless steel, Indian cheap, low-quality products of this kind had chance to flood the domestic market. The firm’s stainless steel was currently sold at prices higher than similar products imported from India by $50 - $60 per ton so the company was facing losses as a result of tough competition.


Therefore, Dongbang proposed to increase duty rate on import stainless steel to 10% - 15%. It also complained that Vietnam now applies the lowest duties on this item among ASEAN countries.


The Vietnam Steel Association (VSA) has also asked for increase of import duty on steel wire for making welding rods to 10%, saying that the current level of 5% has caused many manufacturers to import this kind of steel to produce steel net, nail, plated steel wire, etc leading to low construction quality.


To the contrary to the VSA, welding rod manufacturers suggested reduction in duties on steel wire, which is material for their production. Their reason was that domestic manufacturers annually supplied 40,000 tons of steel products, consuming around 30,000 tons of H08A, CB08A and SWRY11 steels. An import duty rate of 5% obstructed exports of domestically made steel products for less competitive prices.


Businesses also asked for lowering import duties on plated steels from 7% to 0% - 3%.


According to the Ministry of Trade, domestic production of plated steel should be encouraged so it needed to be protected. Therefore, the Ministry of Finance planned to increase MFN import duty rate on these products to 10%.


It projected to keep the current rate on steel wire for production of welding rods for domestic firms were not able to make this items so far.


After studying domestic production capacity, the Ministry of Industry requested the Ministry of Finance to increase the current rate to 10% to protect domestic stainless steel products.


Source: Tuổi trẻ

Last updated: 04/11/2013
Viewed: 6229
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