Natonal Steel wins dumping case against Taiwanese exporters

The National Steel Corp. (NSC) has won its dumping case against Taiwanese exporters of cold rolled coils (CRC) but the Department of Trade and Industry ordered the suspension of the dumping duty until NSC resumes operations.

In an order, the DTI said it concluded that there was sufficient evidence suggesting the eight Taiwanese companies had been exporting CRC into the Philippines at dumped prices.

As a result, the DTI would impose an anti-dumping bond for a period of four months after NSC resumes its operations against the exporters identified as: Hua Ming, Kao Hsing Chang Iron and Steel Corp. Ornatube Ent. Co. Inc., Po-Chun Ent. Co., Sheng Yu, Ton Yi, Yieh Loong Ent. Co. and Yieh Phui Ent. Co.

The DTI said these companies would be imposed duties ranging from 6.63 percent to as high as 26.98 percent of the weighted average dumping margin between March 1998 and May 1999.

However, the DTI said the duties would be suspended until NSC is able to prove that its CRC division has resumed normal commercial operation.

The Cabinet committee on Tariffs and Related Matters (TRM) had earlier rejected the petition of midstream steel producers to lower the duty on steel products and decided to maintain tariffs on steel products at seven percent as government struggles to protect local midstream producers.

Still pending before the commission is the petition filed by Filipino Galvanizers Institute, Puyat Steel Corp. and Sonic Steel Industries to bring down duties from seven percent to three percent on their main raw material, cold rolled coils and tin plates.

Cold rolled coils and tin plates are mostly imported from Russia, especially since the NSC is no longer producing steel products since it shut down last November.

At present, there are at least 12 companies that use CRC to manufacture galvanized iron and pre-painted steel.

Earlier, government decided to maintain the seven percent tariff on hot rolled coils (HRCs) to protect NSC but delayed the scheduled reduction from seven percent to three percent.

Hot rolled coils are used for flat steel products such as iron sheets, tubes and pipes. The country’s supply, however, is mostly imported since NSC’s production is way below domestic demand.