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South Korea rules against Taiwan steel companies in dumping case

2018/09/22 18:26:27

Taipei, Sept. 22 (CNA) The Korea Trade Commission (KTC) has ruled that producers of stainless steel bars from Taiwan and Italy sold their products at unfairly low prices in the Korean market, Taiwan's Ministry of Economic Affairs (MOEA) said Saturday.

In a statement, the MOEA said the KTC issued a preliminary ruling Thursday in which it said Taiwanese and Italian stainless steel bar makers violated South Korea's anti-dumping law.

The KTC has recommended provisional anti-dumping tariffs of 9.68 percent on products from Taiwan's Walsin Lihwa Corp., 18.56 percent on products from Gloria Material Technology Corp., and 13.27 percent on products from other Taiwanese companies, the MOEA said.

Walsin Lihwa and Gloria Material were the mandatory respondents in the case.

The KTC also recommended anti-dumping tariffs ranging between 11.02 percent and 13.08 percent against Italian stainless steel bar vendors.

The MOEA said stainless steel bars are used in a wide range of products, such as sophisticated precision equipment, auto parts, machinery, aircraft components, medical equipment and building materials.

According to the MOEA, South Korea's Ministry of Strategy and Finance is expected to announce in one month whether the provisional anti-dumping tariffs will be implemented.

South Korea launched an investigation into stainless steel bar makers from Taiwan and Italy on May 18 to determine if they were engaged in dumping practices from July 1, 2016 to June 30, 2017.

According to South Korea's Yonhap news agency, the investigation was prompted by a petition from South Korean firms, including Dongil Steel Co. and SeAH Special Steel Corp., claiming that the cheap imports were hurting their businesses.

Following its preliminary ruling, the KTC will continue its investigation over the next three months and hold public hearings in November before issuing a final decision, the MOEA said.

Citing South Korean customs data, the MOEA said Taiwan sold US$25.95 million worth of stainless steel bars to South Korea in 2017, accounting for 17.97 percent of the country's total imports of the product.

That made Taiwan the second largest overseas source of stainless steel bars in South Korea, trailing only Japan, which accounted for a 24.32 percent share of imports in the category.

Because the provisional anti-dumping tariffs recommended by the KTC seem high to Taiwanese exporters, the MOEA is advising the companies to attend the upcoming hearings and answer questions raised by investigators to push for lower anti-dumping tariffs.

The ministry said it is ready to provide any necessary assistance to help Taiwanese companies seek legal redress against the tariffs.

(By Chiu Po-sheng and Frances Huang)