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EU confirms extension of Indonesian tariffs on stainless steel

Ferrous metallurgy

The European Commission has confirmed final countervailing duties on Indonesian cold-rolled stainless steel on materials imported from Taiwan, Turkey and Vietnam.

EU confirms extension of Indonesian tariffs on stainless steel

Applying a 20.5% countervailing duty rate on Indonesian SSCRs to imports from Taiwan, Turkey and Vietnam, and expanding Indonesia's 19.3% anti-dumping duty on SSCRs to include Taiwan and Vietnam. The Commission will suspend Taiwan's current 6.8% anti-dumping duty on non-exempt companies to avoid double imposition of duties.

The confirmation of the measure comes two months after MEPS reported preliminary results Commission investigations into potential circumvention of Indonesian measures first introduced in 2022.

The investigation covered the period from January 1, 2020 to June 30, 2023 and found that imports from Taiwan, Turkey and Vietnam bypassed the countervailing duty on Indonesian SSCR products.

Exempt companies

Eight companies received exemption from the new duties. These companies (listed below) proved that there was no significant increase in the acquisition and export of stainless steel of Indonesian origin during the study period.

Commenting on the extension of the Indonesian measures, MEPS International head of price analysis and forecasts Kaye Ayoub noted that exempt companies must now provide evidence of the country in which the stainless steel was originally smelted. She added: “The Commission has confirmed tax exemption for several companies without the payment of countervailing duty, regardless of the origin of the source material. However, they will control the volume of Indonesian stainless steel production from these companies. If there is a noticeable increase, the benefits may be revised.”

She added: “If the company loses the tax exemption, it will apply to all SSCR imports into the EU, regardless of whether they use Indonesian materials or not. So this monitoring process is sort of a warning to exempt companies not to abuse their exemption or they will lose it.”

The European Commission's countervailing investigation into imports of SSCRs of Indonesian origin from Taiwan, Turkey and Vietnam was launched in response to a request submitted by the European Steel Association (Eurofer) in July 2023.

Eurofer described this week's resolution as "an important step towards restoring a level playing field for the European stainless steel industry."

CEO Axel Eggert added: “The anti-circumvention measures published today are important to ensure the full effectiveness of the initial measures and prevent artificially cheap, dumped and subsidized semi-finished products (stainless steel slabs and hot rolled coils) from Indonesia. is freely entering the European market, threatening the European stainless steel industry.”

Evidence of Circumvention

The Commission's investigation period found that import volumes from Taiwan into the EU rose sharply after anti-dumping and anti-subsidy investigations into Indonesian stainless steel began in 2020. Similar trends were observed in Turkey and Vietnam.

During the investigation period, the Commission found that EU imports from Vietnam increased by 174%, imports from Taiwan by 49% and imports from Turkey by 42%.

The Commission's investigation rejected arguments that there were no changes in trade patterns or significant increases in imports from the countries concerned.

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