Ukraine Probes Suspected Duty Circumvention ThroughMalaysia
Ukraine has launched an anti-dumping investigation intoimports of coated carbon steel flat products from Malaysia, followingsuspicions that these shipments may actually be Chinese products being reroutedto evade existing trade restrictions. The Interdepartmental Commission onInternational Trade announced the investigation after domestic steel producersraised concerns about potential duty circumvention.
The investigation, formalized through ICIT Decision No.AD-575/2025/441-01, comes in response to complaints filed by Ukrainianmanufacturers Heavy Metal LLC and MODUL-UKRAINE LLC. These companies presentedevidence suggesting a significant shift in trade patterns following Ukraine's2023 imposition of anti-dumping duties on similar Chinese steel products.
Trade Pattern Shifts Raise Red Flags
According to the complaint, import data shows a suspiciouscorrelation: as Chinese steel imports declined following the 2023 anti-dumpingmeasures, Malaysian shipments to Ukraine increased substantially. This inverserelationship has raised concerns that Chinese producers may be using Malaysiaas a transshipment point to circumvent the duties.
The Ministry of Economy noted that preliminary evidencesuggests these imports could be part of an "artificial scheme"designed specifically to reduce customs value and avoid proper taxation,particularly the anti-dumping duties that would apply to Chinese-originproducts.
The investigation will be conducted in cooperation with theState Customs Service, suggesting that customs documentation, supply chainverification, and origin certification will be key aspects of the probe.
Provisional Measures Implemented During Investigation
While the investigation proceeds, the ICIT has implementedprovisional measures to protect against potential duty evasion. Importers ofthe relevant steel products from Malaysia will be required to make advancepayments to a State Treasury deposit account, which will serve as a guaranteefor potential customs duties if circumvention is confirmed.
This approach allows Ukrainian authorities to continuepermitting imports while ensuring financial security should the investigationdetermine that anti-dumping duties should be applied. The decision willofficially enter into force 10 days after its publication in the officialgovernment gazette, Uriadovy Courier.
The Ministry of Economy has called on all interestedparties to submit relevant factual information in Ukrainian within the legallyspecified timeframes, though specific deadlines were not detailed in theannouncement.
Key Takeaways:
• Ukraine's Interdepartmental Commission on InternationalTrade has launched an anti-dumping investigation into coated carbon steel flatproducts from Malaysia
• The investigation follows complaints from domesticproducers Heavy Metal LLC and MODUL-UKRAINE LLC about suspected dutycircumvention
• Evidence suggests Malaysian imports increased as Chineseimports decreased following anti-dumping duties imposed on Chinese steel in2023
• Importers from Malaysia must make advance payments to aState Treasury deposit account during the investigation period
• Ukrainian flat steel imports reached 268,250 tonnes in Q12025, up 28.8% year-on-year, with Turkey, Poland, Slovakia, China, and Italy asthe main suppliers
• The investigation will be conducted in cooperation withthe State Customs Service to determine if Chinese products are being reroutedthrough Malaysia
• The decision will take effect 10 days after its officialpublication in the government gazette
