New tariffs are hoped to protect domestic steel producers.
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|The new tariffs will kick in on August 2. Photo from vca.gov.vn.|
The Ministry of Industry and Trade (MoIT) will impose tariffs on steel billets and steel bars imported by Vietnam from a number of countries and territories, including China, the U.S., Canada, Germany, France, Japan and South Korea.
Developing countries like India, Thailand and Latin American countries, and under-developed ones in Africa who account for less than 3 percent of Vietnam's total steel imports, will be exempt from the tariff.
The ministry will maintain a tariff of 23.3 percent on steel billet while the fee on steel product will be increased from 14.2 percent to 15.4 percent. The decision will take effect from August 2 and last for four years.
The rate imposed on steel billet will be reduced to 21.3 percent, 19.3 percent and 17.3 percent over the following three years. Similarly, long steel product tariffs will be reduced to 13.9 percent, 12.4 percent and 10.9 percent over the same period.
The move comes after excessive steel imports have harmed the domestic industry, according to an investigation by Vietnam Competition Authority. Previously, local producers Hoa Phat Steel JSC, Southern Steel Co Ltd, Thai Nguyen Iron and Steel JSC and Viet Nam-Italy Steel JSC had submitted complaints on this matter.
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From 2012 to 2015, steel billet and long steel bar imports trippled to 1.5 million tons and 1.2 million tons respectively, according to Vietnam Steel Association.