Month: November 2021
32 countries to remove China from preferential tariff treatment on Dec. 1
32 countries to remove China from preferential tariff treatment on Dec. 1
TAIPEI (Taiwan News) — China Customs says 32 countries will no longer provide preferential tariff treatment to the world’s largest exporter from Dec. 1, and an economic expert says labor-intensive businesses will bear the brunt of the development.
According to a statement recently issued by the General Administration of Customs of China (GACC), 32 countries will remove China from their trade preference lists of beneficiaries of duty-free tariff treatment of certain products, Hong Kong media reported. The GACC applauded the move as “a recognition from other advanced economies that China does not belong to the bracket of low-income and lower-middle-income countries anymore and that Chinese products are competitive enough in the market that (they need) no protections.”
“We are ‘graduating’ from the GSP (Generalized System of Preferences) program and are ’sort of’ moving towards becoming a mature economy,” it stated.
The preferences were given to China starting in 1978, and some 40 countries have granted or are still giving it duty-free treatment on certain exports. Starting Dec. 1, 27 EU nations, the United Kingdom, Canada, Turkey, Ukraine, and Liechtenstein will no longer grant China this treatment, leaving the nation eligible for GSP trade benefits from only three countries — Norway, New Zealand, and Australia.
Chunghwa Economy and Finance Association Deputy Secretary General Tseng Chih-Chao (曾志超) told RFA that the end of duty-free market access to China will leave little impact on its overall exports. Labor-intensive and low-margin businesses, however, will bear the brunt, and that might speed up the relocation of production from China to other developing countries as a result, he said.
Anti-dumping duties on polyester filament yarn originating from China, India, Indonesia, and Malaysia
Anti-dumping duties on polyester filament yarn originating from China, India, Indonesia, and Malaysia
On October 13, 2021, the Ministry of Industry and Trade issued Decision No. 2302/QD-BCT on the application of official anti-dumping measures (CBPG) to a number of polyester filament products originating from China, India, Indonesia and Malaysia. Accordingly, the Ministry of Industry and Trade continues to maintain the anti-dumping tax previously applied under Decision No. 2080/QD-BCT dated August 31, 2021 to apply temporary anti-dumping tax on some polyester filament products from the above countries.
The Ministry of Industry and Trade started investigating the case from April 2020 on the basis of the request of the domestic manufacturing industry submitted in November 2019. The investigation process of the case is carried out in accordance with the provisions of the Law. Management of foreign trade and related regulations as well as the Anti-Dumping Agreement of the World Trade Organization. In the context of the Covid-19 pandemic, in order to facilitate the relevant parties to prepare sufficient information and data as well as to clarify the impact of dumping on the operation of the domestic manufacturing industry, including downstream manufacturing industries, the Ministry of Industry and Trade has extended the time limit for investigating the case to October 6, 2021.
The results of the official investigation showed a sudden increase in the amount of investigated goods imported from China, India, Indonesia and Malaysia. In particular, in the context of Covid-19, polyester filament yarn imports in the first 6 months of 2021 reached nearly 258,000 tons, up 37% over the same period in 2020. Dumping imported goods was the main cause of causing great damage to the domestic industry.
The application of official anti-dumping measures will contribute to creating an equal competitive environment for domestic industries, enhancing the autonomy of input materials, thereby enhancing value – added and competitiveness of Vietnamese products and enterprises in the global value chain. In addition, Vietnam has joined many Free Trade Agreements (FTAs), creating favorable conditions for many economic sectors, including textiles, to expand export markets. However, in order to enjoy tariff preferences, the domestic manufacturing industry must meet strict rules of origin according to each FTA. Therefore, increasing the initiative in the production of raw materials, meeting the requirements of origin will help the textile industry to take advantage of the benefits from FTAs.
In the coming time, the Ministry of Industry and Trade will continue to coordinate with relevant ministries and related parties to monitor the impact of trade remedies, production situation, supply-demand, prices, etc. to ensure a fair competitive environment with equality and convenience for the manufacturing industry in accordance with regulations.
ORIGINS | PRELIMINARY RATE % | FINAL RATE % |
INDIA | 54.9% | 54.9% |
INDONESIA | 21.94% | 21.94% |
MALAYSIA | 21.23% | 21.45% |
CHINA | 3.36%-17.45% | 3.36%-17.45% |