The International Trade and Industry Ministry (Miti) today announced the imposition of anti-dumping duties on firms from China, Japan, South Korea and Vietnam exporting cold rolled coils of iron or non-alloy steel to Malaysia, specifically those with more than 1,300mm.
This comes following the conclusion of an anti-dumping investigation concerning the export of the material from the four countries.
"The investigation was initiated by the government in accordance with the Countervailing and Anti-Dumping Duties Act 1993 and Countervailing and Anti-Dumping Duties Regulation 1994 on March 29, based on a petition filed by Mycron Steel CRC Sdn Bhd, on behalf of the domestic industry producing cold rolled coils.
"The petitioner alleged that the subject merchandise from the alleged countries is being imported into Malaysia at a price lower than the selling price in their respective domestic markets, causing material injury to the domestic industry in Malaysia," the ministry said.
In trade, dumping is a situation where an overseas firm, in order to get rid of a surplus of certain merchandises, sells them to another country at below the market price in their own country.
This can hurt the domestic industry of the importing country and countries often counter this with anti-dumping duty.
Miti said it hopes the imposition of anti-dumping duties will address the "unfair trade practices".
"The Customs Department will enforce the collection of anti-dumping duties and this measure will be effective for five years, from Dec 25, 2019 to Dec 24, 2024," it said.
Miti has also decided not to impose definitive anti-dumping duties on tin mill black plate and subject merchandise for automotive's and transformer's finwall end-usage, it added.