Commerce Begins Investigation on Vietnamese Steel Circumvention

Estimated reading time: 4–5 minutes

Background Information

This inquiry starts after a request from Steel Dynamics Inc. and Nucor Corporation. They claim that these steel products should fall under existing antidumping (AD) and countervailing duties (CVD) against corrosion-resistant steel from Vietnam.

What Are the Orders About?

The orders involve flat-rolled steel products. These products might be plated or coated with metals that resist rust, like zinc or aluminum. Such products could also have added layers of paint or plastic coatings.

What Is Being Inquired?

The inquiry looks at whether steel completed in Indonesia, using materials from Vietnam, is avoiding the duties. The steel products are meant for the U.S. market. If found to be avoiding duties, they will face AD and CVD orders.

Steps by Commerce

Commerce has guidelines under U.S. trade law to decide if there is circumvention. They look at whether the steel imported into the U.S. is similar to products made in Vietnam, whether the process in Indonesia is minor, and if substantial value comes from Vietnam. They also check if taking steps is necessary to prevent duty evasion.

Factors for Consideration

  • Investment level in Indonesia.
  • Research and development efforts there.
  • Production nature and facilities’ extent.
  • Value proportion of the process.

The individual factors do not single-handedly decide the issue. Commerce will examine all of them combined to get a complete picture.

Looking at Trade Patterns

Commerce also examines trade patterns. This includes checking any shifts in how materials are sourced or if trade has increased since the order started. They will study relationships between manufacturers or exports as well.

Next Steps and Timeline

Commerce will select respondents based on U.S. Customs data. Respondents will likely include Indonesian firms producing the questioned steel. Companies have a duty to provide complete information, or they may face penalties.

Suspension Details

For products already under suspension due to the orders, Customs will maintain the status quo. If the inquiry finds circumvention, suspended shipments will stay affected. If new items not under suspension are found to skirt the rules, suspension will start from March 25, 2026.

Timeline for Decision

Commerce plans to issue a preliminary decision in 150 days and a final decision within 300 days. All interested parties will stay informed as the inquiry progresses. Commerce’s decisions aim to ensure fair trade practice and compliance.


Legal Disclaimer

This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.