Given unfair practices, Colombian government imposes provisional anti-dumping measures on Chinese imports of galvanized steel sheets

alaceroAlacero-Santiago, Chile. July 30th , 2013. On July 23rd, 2013, the Ministry of Commerce, Industry and Tourism of Colombia  issued Resolution No.167, which imposes provisional anti-dumping duties on imports of galvanized steel  sheets originated in China, while the administrative investigation continues.

Preliminary results of the research carried out by agencies of the Ministry concluded that imports of galvanized sheet during the investigation period (March 19th, 2012 through March 19th, 2013) were conducted  under unfair trade conditions, and have a causal relationship with the economic and financial damage registered in the corresponding national productive sector.

The investigation began in early 2013 after a requirement of the national producers ACESCO de Colombia –  ACESCO S.A.S. and Corpacero S.A., which represent 100% of the national production. The national producers supposed dumping in Colombian imports of galvanized sheets (tariff subheading 7210.49.00.00)  originated in the People’s Republic of China. These imports sharply increased over the past 3 years.

“Semiannual behavior indicates that, on average, during the second half of 2012 and the first of 2013, when  compared to the average of the semesters between the first half of 2010 and the first half of 2012, domestic  demand of galvanized sheet grew 15.04%. This growth was driven by the 8,965 tons rise of the investigated  imports, and by increased consumption of the petitioners and larger volume of imports from other countries of 2,902 tons. Meanwhile, sales of domestic producers dropped.” -says the Resolution.

In its analysis of the economic and financial damage caused to the domestic industry by these unfair practices, the Resolution states that, during the dumping period, the volume of domestic sales fell 2.50% and the  share of domestic sales compared to average national consumption decreased 3.41 share points. The use of installed capacity was also reduced by 2.46 percentage points. The productivity in the domestic  industry, during the dumping period, fell 21.44% per worker. And average real monthly wages fell 4.88%.

When it focuses on the imports of galvanized sheet to Colombia by origin, the investigation reveals that  when we compare the semiannual average share of galvanized sheet imports according to their origin during the dumping period (second half of 2012 and first half of 2013) to the same average share during reference period (between first half of 2010 and first half of 2012), imports from China increased by 16.85 share  points, from 26.85% in the reference period to 43.70% during the dumping period. These share points were  lost by other countries, which moved from 73.15% to 56.30% for the same periods.”

From these and other background data provided in the Resolution, “The Sub-Department of Trade Practices  of the Foreign Trade Department considers that the preliminary anti-dumping duty should take the form of  a base price, so that those imports that present prices below this price, must pay an additional duty equal  to the exact amount to equate the FOB price of the imported product up to the level of the base price. In  practice, this procedure leads importers to sell their products on the Colombian market at competitive prices, correcting the material damage caused by price discrimination”. On the other hand, goods entering the  country at fair prices are not sanctioned.

The Resolution also determines the methodology to establish the base price. Provisional duties, in accordance with the provisions of the WTO Antidumping Agreement, apply for a period that will not exceed four  months, unless specifically requested, in that case they will apply for a period not exceeding six months. The purpose of these temporary rights is to avoid further damages during the investigation of dumping. The galvanized steel sheet is used in diverse industrial applications in the metalworking industry (cabinets,  containers), for road works (fenders, signage, railings) and construction (silos, profiles, fences, roofing).

About Alacero
Alacero –Latin American Steel Association- is the organization that brings together the Steel Value Chain of Latin  America to promote the values of regional integration, technological innovation, corporate responsibility and social  and environmental sustainability. Founded in 1959, Alacero is formed by 51 companies of 25 countries, whose production –of about 70 million annual tons- represents 95% of the steel manufactured in Latin America. Alacero is a Special  Consulting Organization to the United Nations and is recognized as International Non-Government Organization by  the Republic of Chile, host country of Alacero´s headquarters.