Posted on 17 Sep 2015
The government agreed yesterday
to exempt six steel importers from penalties under safeguard measures for hot-rolled
steel and premium-grade steel.
Commerce Minister Apiradi Tantraporn, who chaired the meeting of the Trade
Interests and Remedies Committee, said the permissions were granted because
Thailand does not produce such steel locally. Mitr Steel would be exempt for imports
of hot-rolled steel flat products with certain amounts of alloy elements such
as boron and chromium in coils and not in coils.
Thailand has imposed safeguard action on such products since Dec 24, 2013. Earlier, three steel importers – Able Industries, Asian Steel Products and Cotco Metal Works -- were allowed exemptions from safeguard measures such as tariffs up to 121.52% of the cost, insurance and freight prices. The permit for Mitr Steel will be effective until June 7, 2017.
The committee also agreed to exempt five premium-grade steel importers from these measures until Feb 27, 2016: I.T.C. Intercuts, Femtobit Steel, Leong Gin Special Steel (Thailand), Loyal Contact and MRP Engineering Co.
The safeguard rate for premium-grade steel imports is 42.95%. The approval becomes effective once published in the Royal Gazette.
A safeguard measure is a procedure under the World Trade Organization that permits a government to act against an unusual rise in imports of similar goods from trading partners. The measure normally takes the form of additional duties or import quotas lasting several years.
Thailand is keeping its anti-dumping duties on steel imports because domestic producers complain of cheap imports from China. The duties see imported steel, mainly hot- and cold-rolled steel, structural steel and stainless cold-rolled steel facing tariffs of 20-30%.
Last week authorities raised preliminary anti-dumping measures on imported low-carbon steel with alloy from China, charging tariffs of 17.16-34.44% until investigation finishes. Last year Thailand imported 12 million tonnes of steel from China.
