DUMPING PROBE: The Korea Trade Commission endorsed tariffs of 9.68% to 18.56% for the Taiwanese firms, while culpable Italian vendors face tariffs of 11.02% to 13.08%.

The Korea Trade Commission has ruled that producers of stainless steel bars from Taiwan and Italy sold their products at unfairly low prices in the South Korean market, the Ministry of Economic Affairs said on Saturday.

The commission on Thursday issued a preliminary ruling in which it said Taiwanese and Italian stainless steel bar makers breached South Korea’s anti-dumping law, the ministry said in a statement.

The commission has recommended provisional anti-dumping tariffs of 9.68 percent on products from Taiwan’s Walsin Lihwa Corp (華新麗華), 18.56 percent on products from Gloria Material Technology Corp (榮剛) and 13.27 percent on products from other Taiwanese companies, the ministry said.

Walsin Lihwa and Gloria Material were the mandatory respondents in the case, it said, adding that the commission also recommended anti-dumping tariffs ranging from 11.02 percent to 13.08 percent against Italian stainless steel bar vendors.

The stainless steel bars are used in a wide range of products, such as sophisticated precision equipment, auto parts, machinery, aircraft components, medical equipment and building materials, the ministry said.

The South Korean Ministry of Strategy and Finance is expected to announce in one month whether the provisional anti-dumping tariffs are to be implemented, it added.

South Korea on May 18 launched an investigation into stainless steel bar makers from Taiwan and Italy to determine whether they were engaged in dumping practices from July 1, 2016, to June 30 last year.

South Korea’s Yonhap news agency reported that the investigation was prompted by a petition from South Korean firms, including Dongil Steel Co and SeAH Special Steel Corp, claiming that the cheap imports were hurting their businesses.

Following its preliminary ruling, the commission plans to continue its investigation over the next three months and hold public hearings in November before issuing a final decision, the ministry said.

Taiwan sold US$25.95 million worth of stainless steel bars to South Korea last year, accounting for 17.97 percent of the country’s total imports of the product, the ministry said, citing South Korean customs data.

That made Taiwan the second-largest overseas source of stainless steel bars in South Korea, trailing only Japan, which accounted for a 24.32 percent share of imports in the category.

Because the provisional anti-dumping tariffs recommended by the commission seem high to Taiwanese exporters, the ministry is advising the companies to attend the hearings and answer questions raised by investigators to push for lower anti-dumping tariffs.
The ministry said it is ready to provide assistance to help Taiwanese companies seek legal redress against the tariffs.