Illustrative image (Source: VNA)Hanoi (VNS/VNA) –Firms which export derivative aluminium and steel to the US need to work withtheir partners on requesting tax exemption in case their products satisfiedconditions for exclusion, according to the Trade Remedies Authority of Vietnam.
The authority said that the Trump Administration in February imposed additionalduties of 10 percent and 25 percent on derivative aluminium articles andderivative steel articles, respectively, under Section 232 of the TradeExpansion Act of 1962, as amended.
The proclamation exempted articles from countries that had previouslynegotiated exemption agreements with the US.
As a result, the additional 10 percent duties applicable to derivativealuminium articles did not apply to those from Argentina, Australia, Canada andMexico while the additional 25 percent duties applicable to derivative steelarticles did not apply to those from Argentina, Australia, Brazil, Canada,Mexico and the Republic of Korea.
Specially, the proclamation provided for a product exclusion process.
Details for the exclusion process could be accessed at the website of theBureau of Industry and Security of the US Department of Commerce at the addresswww.bis.doc.gov.
The imposition of additional duties of 10 percent on aluminium imports and 25percent on steel imports initially began on March 23, 2018, after the USDepartment of Commerce found that such items were being imported into the US insuch quantities as to threaten to impact US national security.
As the domestic industry might not have achieved the target capacityutilisation because of the significant increase in imports of certainderivative aluminium and steel products since March 2018, the scope of Section232 duties on aluminium and steel was expanded to include certain derivativeproducts.
The Trade Remedies Authority of Vietnam cites statistics of the USInternational Trade Commission that the additional duties affected 785 millionUSD worth of steel imports and 480 million USD of aluminium imports in 2019.
Vietnam exported derivative aluminium and steel products to the US worth 1.8million USD and 1.63 million USD in 2019, respectively, accounting for 0.38 percentand 0.21 percent of the US’ total import of these products./.
VNA
