As countries around the world slowly adjust to the ‘new normal’, global trade continues to rebound after the collapse induced by the COVID-19 pandemic last year, as countries strive to recover the losses suffered. In the process, some exporters are expected to resort to unfair trading practices, including dumping goods to other countries at much lower prices.
Preliminary determination on PC Strand
The investigating authority found an example of this event (HAVE) of the Ministry of International Trade and Industry (MITI) when a notice of positive preliminary determination (NOPD) an anti-dumping duty (A D) an investigation was initiated on August 27, 2021 regarding imports of stranded steel wire for prestressing concrete (Stranded pc) originating in the People’s Republic of China (RPC). On the basis of the NOPD, the investigating authority found the existence of a margin of dumping when PC Strand exported from the PRC is sold below its domestic price in the PRC, causing a injury to domestic producers of PC Strand in Malaysia.
As a result of this preliminary affirmative determination, all imports of PC Strand into Malaysia from the PRC will be subject to provisional anti-dumping duties as follows:
The investigating authority will have 120 days from the date of publication of the NOPD to continue its investigation into imports of PC Strand from the PRC and make a final determination on the existence of dumping, the injury suffered by the domestic industry and the margin and duties. During this period, the AI will conduct verification visits (physically or virtually, as it deems appropriate) on data submitted by other interested parties to ensure the accuracy and relevance of the information.
Final determination on prepainted, painted or color coated steel coils
Earlier this year, the IA also completed an AD administrative review on behalf of the Government of Malaysia against pre-painted, painted or color coated steel coils (PPGI / PPGL) originally from the PRC and the Socialist Republic of Vietnam (Vietnam). Based on the positive final decision notice (NOFD) issued on July 16, 2021, it was found that the dumping practices of PPGI / PPGL exporters from the PRC and Vietnam continued and that the existing anti-dumping duties should be maintained to compensate for these unfair trade practices. Removal of anti-dumping duties at this point is likely to result in the continuation or recurrence of dumping and injury to the domestic industry.
Jason tan and Steward Lee of our tax, customs and trade practice has represented the domestic industry in the above inquiries.
Investigations against Malaysia
While the investigating authority has been vigilant in investigating dumped imports from other countries, other countries have also initiated investigations into exports from Malaysia as follows:
Government of Turkey Rubber tires
On September 10, 2021, the Turkish government initiated an anti-circumvention investigation against certain rubber tires originating in or exported from Malaysia. It was alleged that the existing anti-dumping measures imposed by the Turkish government against imports of tires from the PRC had been rendered ineffective by imports from Malaysia, i.e. the existence of circumvention .
In addition, any interested party likely to be affected by the outcome of this investigation must notify the Turkish government within 37 days from the date of notification of the initiation of the investigation.
Desks and office chairs in Vietnam
On September 1, 2021, the Vietnamese government’s Ministry of Industry and Trade (MOIT) officially initiated an anti-dumping investigation against certain desks and chairs originating in or exported from Malaysia and the PRC. The tables and chairs under investigation are classified under HS codes: 9401.30.00; 9401.40.00; 9401.61.00; 9401.69.90; 9401.71.00; 9401.79.90; 9401.80.00; 9401.90.40; 9401.90.92; 9401.90.99; 9403.30.00; 9403.60.90; 9403.90.90.
The dumping margin proposed by the Vietnamese petitioners is as follows:
Interested parties have 60 working days from the opening date to express their interest in participating in the investigation by sending a registered letter to the MOIT IA, i.e. before 23 November 2021.
Based on the above, Malaysian exporters who may be affected by the results of investigations initiated by the Turkish and Vietnamese governments are advised to obtain legal advice on their rights and remedies in the investigation and to disclose of their interest as soon as possible. Likewise, domestic manufacturers of goods who have suffered injury as a result of importing inexpensive goods into Malaysia are also advised to consult a lawyer to understand the trade remedies available to protect their interests.