Posted on 18 Mar 2016
Chinese, Taiwanese and Malaysian steel importers will no longer be able to avoid paying Australian duties of up to 62.9 per cent by slightly modifying their products.
Industry, Innovation and Science Minister Christopher Pyne announced the government had removed a loophole being exploited by several companies following an investigation by the Anti-Dumping Commission.
The new rules will apply retrospectively, resulting in duties payable of more than $4 million.
They will apply to two products, namely galvanised steel, where the duties will range from 2.6 per cent to 62.9 per cent, and hollow structural steel sections, with new duties from 3 per cent to 57.1 per cent.
The ADC investigation was initiated after Australian company BlueScope Steel made a complaint last year, and expedited following complaints more recently from Arrium Steel, which is based in Whyalla.
Mr Pyne said he did not expect the decision to damage Australia’s relationship with China.
“These aren’t matters to do with the Chinese government.” he said.
“These are businesses in Taiwan, China and Malaysia who have tried to alter their product to not have duties apply to them.
“They have done the wrong thing, they have breached the Australian rules, and we are acting to ensure that they don’t continue to get away with that circumvention
“I don’t see how any country, any government, could be disappointed with the Australian government applying the rules.”
Assistant Science Minister Karne Andrews said the companies had been making slight changes to the composition of their steel, such as adding boron so the product was technically an alloy, to avoid the duties.
“Now it is possible that there will be other slight modifications that are made to steel and other products over time, and then it will be up to the ADC to conduct further investigations in particular cases,” Ms Andrews said.
