Aluminium, steel exporters urged to consider requesting tax exemption

Update: 17:56 | 09/03/2020
Firms which export derivative aluminium and steel to the US need to work with their partners on requesting tax exemption in case their products satisfied conditions for exclusion, according to the Trade Remedies Authority of Vietnam.
TIN LIÊN QUAN
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Firms which export derivative aluminium and steel to the US need to work with their partners on requesting tax exemption in case their products satisfied conditions for exclusion, according to the Trade Remedies Authority of Vietnam.

aluminium steel exporters urged to consider requesting tax exemption
Illustrative image. (Photo: VNA)

The authority said that the Trump Administration in February imposed additional duties of 10 percent and 25 percent on derivative aluminium articles and derivative steel articles, respectively, under Section 232 of the Trade Expansion Act of 1962, as amended.

The proclamation exempted articles from countries that had previously negotiated exemption agreements with the US.

As a result, the additional 10 percent duties applicable to derivative aluminium articles did not apply to those from Argentina, Australia, Canada and Mexico while the additional 25 percent duties applicable to derivative steel articles did not apply to those from Argentina, Australia, Brazil, Canada, Mexico and the Republic of Korea.

Specially, the proclamation provided for a product exclusion process.

Details for the exclusion process could be accessed at the website of the Bureau of Industry and Security of the US Department of Commerce at the address www.bis.doc.gov.

The imposition of additional duties of 10 percent on aluminium imports and 25 percent on steel imports initially began on March 23, 2018, after the US Department of Commerce found that such items were being imported into the US in such quantities as to threaten to impact US national security.

As the domestic industry might not have achieved the target capacity utilisation because of the significant increase in imports of certain derivative aluminium and steel products since March 2018, the scope of Section 232 duties on aluminium and steel was expanded to include certain derivative products.

The Trade Remedies Authority of Vietnam cites statistics of the US International Trade Commission that the additional duties affected 785 million USD worth of steel imports and 480 million USD of aluminium imports in 2019.

Vietnam exported derivative aluminium and steel products to the US worth 1.8 million USD and 1.63 million USD in 2019, respectively, accounting for 0.38 percent and 0.21 percent of the US’ total import of these products.

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(Source: VNA)