US expected to impose tariffs on Vietnamese PTY products on Dec 3

The United States had initiated an anti-dumping duty investigation on polyester yarn products imported from Vietnam, Indonesia, Malaysia and Thailand last November, signifying the possibility of import taxes for yarn.

The department concluded on October 19 that a dumping margin of 2.58 per cent, a decrease of 0.09 per cent compared to the preliminary margin of 2.67 per cent for Vietnam’s Century Synthetic Fibre Corporation.

The tax rate for this company is low compared to those of other countries under investigation, which are taxed with 7.45 per cent or more. However, the remaining Vietnamese companies are all subject to a tax rate of 22.36 per cent, down 0.46 per cent from the preliminary margin of 22.82 per cent.

In this investigation, “the US still does not consider Vietnam a market economy, and used India’s data for reference,” said Nguyen Phuong Chi, chief strategic officer of Century Synthetic Fiber. “If we can use our documents, we could enjoy a zero per cent tax rate,” he was quoted as saying by a Vietnamese newspaper.

Vietnam’s yarn industry reserves more than 70 per cent of its output for export, of which exports to China account for up to 70 per cent. On the other hand, the main input source of the yarn industry is cotton, which is imported with more than 50 per cent from the United States, with the rest coming from Brazil, India, Australia, West Africa and a few other nations.

Fibre2Fashion News Desk (DS)