Taiwan’s Customs Administration recently announced a significant change in the anti-dumping duty rate on zinc-coated steel products imported from China’s Fujian Kaijing New Technology Material Co., Ltd. Following a review of the company's trade practices, the duty on these products has been raised from 0% to 4.72%. The revised duty rate was officially applied as of November 27, 2024, and it will remain in effect until September 13, 2027.
This decision comes after Taiwan’s review of certain flat-rolled steel products, specifically those that are plated or coated with zinc or zinc alloys. These products are crucial in various industries due to their corrosion resistance and durability, making them vital for applications such as construction, automotive manufacturing, and household appliances. The Taiwanese authorities' review focused on whether the products from Fujian Kaijing were being sold in Taiwan at unfairly low prices, a practice known as "dumping."
The revision of the anti-dumping duty follows a complaint filed by several major Taiwanese steel companies, including China Steel Corp, Prosperity Tieh Enterprise, Sheng Yu Steel, Yieh Phui, Chung Hung Steel, and Synn Industrial. These companies raised concerns that the Chinese steel products were being sold below their market value, which could harm local producers by undermining their pricing structures and market share. The review found that the situation regarding Fujian Kaijing's dumping practices had indeed changed, warranting the imposition of the new duty rate.
The revised anti-dumping measure aims to level the playing field for Taiwanese steel manufacturers. By imposing a 4.72% duty, Taiwan is seeking to protect its domestic industry from unfair competition and ensure that local producers can maintain their pricing and market positions. The duty will be applied to imports of zinc-coated steel from Fujian Kaijing, effectively raising the cost of these products in Taiwan’s market and discouraging further dumping practices.
Fujian Kaijing, which is located in China's southeastern province, has yet to comment on the new duty rate or the findings of the review. The company, like other Chinese manufacturers, will need to adjust its pricing strategies to accommodate the increased costs associated with the duty if it wishes to continue exporting its zinc-coated steel products to Taiwan. If the company does not comply with the new duty, it could face further restrictions or penalties from Taiwanese authorities.
The updated anti-dumping duty rate is set to remain in place until September 2027, providing a clear framework for Taiwanese steel companies to plan their operations over the next several years. This decision also highlights Taiwan’s commitment to ensuring fair trade practices in its domestic markets and its ongoing efforts to protect local industries from disruptive trade practices. As the global steel market continues to evolve, the role of anti-dumping measures like this one will remain critical in shaping the competitive landscape.
