US lawsuit against tax evasion, the “big” steel industry affected?

13/05/2020 - 04:56  

Recently, a number of US enterprises have filed anti-dumping and anti-subsidy lawsuits with the US Department of Commerce (DOC) for cold-rolled steel products (CRC) and galvanized steel sheets from Vietnam. Nam to these markets.

The reason is that US enterprises suspect that Chinese enterprises have exported hot rolled steel products to Vietnam and processed them into cold rolled steel and galvanized steel sheets and then exported to the US to avoid anti-dumping tax. .

Therefore, the plaintiffs requested the US Department of Commerce to conduct anti-dumping and anti-dumping investigations on galvanized steel and cold-rolled steel products imported from Vietnam and these products. must be equal to the anti-dumping duty on the same kind of Chinese products.

Previously, DOC had applied anti-dumping duty of 265.79% and countervailing duty of 256.44% for Chinese cold-rolled steel products, imposed antidumping duty of 199.43% and CTC tax of 39.95% – 256.44% for galvanized steel products. The US DOC will review and issue a decision whether to initiate an investigation within 45 days of receipt of the application and issue a final decision within 300 days.

In a report by Vietnam Prosperity Joint Stock Commercial Bank (VPBS) from HSG leaders, the investigation on tax evasion mainly focused on two businesses that are importing hot rolled steel. from China and produced into cold rolled steel and galvanized steel sheets and then exported to the US are China Steel Sumikin Vietnam (CSVC) and Posco Vietnam Group.

According to VPBS, although HSG imports hot rolled steel from China and many other countries, the company has to perform many stages to produce galvanized steel sheet before exporting to the US. Therefore, there is no clear evidence that HSG galvanized steel sheet will be subject to anti-dumping tax like other steel enterprises are avoiding anti-dumping tax.

VPBS also does not exclude the worst case that HSG is subject to the highest anti-dumping tax rate in the US, the tax rate. However, it is assumed that this tax will not seriously affect HSG’s export activities as the company is likely to move to other export markets.

Meanwhile, with Hoa Phat, VPBS said that these anti-dumping duties will not affect this Group because HPG’s main export products are long steel and tube steel.

However, according to VPBS, in the long term, these two businesses may be affected because the steel importers from Vietnam will take advantage of the reason of “avoiding anti-dumping and anti-dumping duties” to impose taxes on Products imported from Vietnam.

Although it is assessed that it will not affect much, this information has partly affected two steel industry giants on the stock market. Hoa Sen’s shares had 4 consecutive losing sessions while Hoa Phat’s shares declined for 6 consecutive sessions.

Equally, Hoa Phat’s market capitalization dropped by VND 3,200 billion, while Hoa Sen lost about VND 668 billion. With the holding of more than 180 million Hoa Phat shares, the Chairman of this Group, Mr. Tran Dinh Long, “lost” about VND 700 billion while the Chairman of Hoa Sen Group – Mr. Le Phuoc Vu lost about VND 88 billion.

Phuong Dung