Recently, the Vietnam Trade Remedies Administration has issued a notice warning that Vietnam is likely to be subject to a trade remedy circumvention investigation for quartz stone products exported to the United States, suspected of using raw materials, official products, or similar products from countries that are subject to anti-dumping and anti-subsidy duties such as China, India, and Turkey.
Currently, the United States is imposing anti-dumping and anti-subsidy duties on quartz stone products imported from China, India, and Turkey.
Specifically, the US Department of Commerce (DOC) has officially applied anti-dumping and anti-subsidy duty on quartz stone products imported from China since July 11, 2019 with the anti-dumping duty rate ranging from 265.81% to 333.09% and the anti-subsidy duty rate ranging from 45.32% to 190.99% depending on the Chinese enterprises.
For quartz stone products imported from India and Turkey, DOC has also imposed anti-dumping duties since June 22, 2020 with anti-dumping duties ranging from 2.67% to 5.15% for Indian businesses and from 0% to 5.17% for Turkish businesses.
The above trade remedies are effective for 5 years from the date of application and remain in effect as of June 2023.
In addition to the above three countries, the United States has also conducted trade remedy investigation for quartz stone products imported from Malaysia. Specifically, on October 21, 2022, DOC concluded that quartz stone products manufactured in Malaysia used quartz slabs imported from China when exported to the United States.
Accordingly, Malaysian businesses have been confirmed to have circumvented trade remedy duties on duties currently applied to Chinese products. During the investigation, the US investigating agency confirmed that 9 Malaysian enterprises did not respond and provide information according to the request of the US Department of Commerce and thereby, will be subject to higher duty rates than other Malaysian enterprises which respond and fully cooperate based on available information of the investigating agency.
Warning about the risk of the US trade remedy investigation for quartz stone surfaces imported from Vietnam
Currently, the DOC has expanded its anti-circumvention investigation to a number of other countries. According to information from the Vietnam Trade Remedies Administration, Vietnamese enterprises are likely to be investigated by the US because the total export turnover of quartz stone products to the US has increased.
In which, there is a suspicion that Vietnam imports raw materials from China to perform acts of circumventing trade remedies but fails to declare, or declares insufficiently the quantity and structure of products in accordance with the actual situation.
If it is confirmed that they have circumvented trade remedies, Vietnamese enterprises are likely to be subject to anti-dumping and anti-subsidy duties that Chinese enterprises are being applied.
Accordingly, in order to protect their interests, Vietnamese enterprises should contact a reputable law firm on anti-dumping and trade remedies soon to receive timely support.