Over 400% punitive tariff! Vietnam introduces new emergency regulations to crack down on Chinese
- Author:MIKEY
- Source:Sunny Worldwide Logistics
- Release Date:2019-08-16
With the approach of September 1, it is highly probable that 97% of China's exports to the US will be subject to a 10%-25% tariff, and some companies have countermeasures.
Recently, however, Vietnam has successively introduced new regulations to strictly investigate the export of counterfeit Vietnamese certificates of origin to the United States. Also please pay attention to the relevant companies.
Changes in Vietnam
Vietnam was once considered a country that could benefit the most from Sino-US trade frictions.
In terms of export volume alone, Vietnam’s exports to the US increased by 36% year-on-year in the first five months of 2019! With up to $25 billion in products shipped to the United States in May, Vietnam has become the eighth largest source of US imports, and Vietnam was ranked 12th a year ago.
According to US government statistics, in the first five months of 2019, Vietnam’s exports of computers and electronic products to the United States increased by 71.6% year-on-year. In the past five months, Vietnam’s surplus to the US reached US$21.6 billion, a surge of 43% year-on-year.
At the same time, electronic products, computers, machinery and other equipment exported from China to Vietnam surged compared to the same period in 2018.
After analyzing the trade data, Nomura Holdings of Japan confirmed that in the first quarter of this year, the value of new orders received by Vietnam due to the trade turn was equivalent to about 7.9% of the country's gross domestic product.
The United States is now Vietnam’s largest export market. Under this circumstance, Vietnam is not afraid to offend the United States.
American action
US President Trump said in an interview on June 26 that "Vietnam is cheaper than China in the United States. These companies should return to the United States to set up factories. Although Vietnam is smaller than China, it is almost the worst of all countries. The abuser." He hinted that Vietnam may become his next target to increase tariffs.
On May 28, the U.S. Treasury Department announced the semi-annual exchange rate policy report and listed Vietnam as a "list of exchange rate manipulation observations."
On July 3, the US Department of Commerce said that it had initially ruled that the steel exported by Vietnam would evade tariffs. Some companies import steel from Vietnam to evade anti-dumping and countervailing duties, and will impose more than 400% tariff on steel imported from Vietnam. Among them, some products produced in South Korea and Taiwan will be shipped to Vietnam for processing and then exported to the United States as corrosion-resistant steel and cold-rolled steel.
US Trade Representative Wright Heze warned Vietnam to pay attention to trade deficit with the United States
Vietnam's reaction
As soon as the United States warned, Vietnam would be paralyzed.
Vietnam said it is working to reduce its trade surplus with the United States and has already cracked down on manufacturers that are passing through Southeast Asian countries to bypass their higher tariffs and re-export their goods to the United States. Vietnamese Prime Minister Qi Chunfu also instructed officials in early July to pay close attention to the US response to Vietnam’s monetary policy.
The US Embassy in Hanoi recently stated that it is negotiating with the authorities and hopes that "Vietnam will take measures in the short term to resolve our concerns in a constructive manner."
During the G20 Osaka Summit in late June, the Vietnamese Foreign Ministry issued a statement late at night saying that it would "intervene" detours.
Vietnam Customs issued a statement on the government website on June 9th that it has discovered that dozens of Chinese goods are pretending to be exported to Vietnam, in order to bypass the US punitive tariff measures against Chinese exports.
According to the statement, “the products that are illegally transshipped in Vietnam are mostly textile, marine and agricultural products, as well as magnetic tiles, honey, steel, aluminum and wood products.” Some importers illegally repackaged products imported from China. Labeled "Made in Vietnam" and applied for Vietnam's certificate of origin for export to the United States, Europe and Japan.
Vietnam Customs is developing a new program to better identify and punish companies that violate the rules to counterfeit Chinese products for Vietnamese products.
At present, Ho Chi Minh City has been focusing on the implementation of strict investigation of counterfeit “Made in Vietnam”. The Municipal Customs Bureau shall strengthen the supervision of ports and customs areas in the jurisdictions; and seize and severely punish violations of the scope of impersonation of origin and import of defective products. The government requires the city border defense command headquarters to strengthen patrols and seize all seaports, estuaries, yards, cargo ramps and ships. The smuggling, storage and transportation of daily necessities belonging to the border guards, as well as clothing and other pretending behaviors, should be punished in time. .
The Ministry of Industry and Trade of Vietnam has also recently issued a draft standard for “Made in Vietnam” (origin):
The place of origin must be marked on the merchandise label. If a product is produced exclusively in Vietnam or entirely in Vietnam, it will be marked as “Made in Vietnam”.
If the goods are manufactured in the final processing stage of Vietnam, it is necessary to meet the requirements of the relevant commodity code (HS) conversion regulations and the domestic new value ratio of more than 30%, in order to mark “Made in Vietnam”.
Vietnam Ministry of Industry and Trade announcement screenshot
(Originally Vietnamese, which has been turned directly by Google)
The Ministry of Industry and Commerce of Vietnam pointed out that if the draft is approved, it will help prevent unscrupulous traders from using the trade fraud of Vietnam’s “washing place”.
It is expected that Vietnam’s exports to the United States will continue to surge in the second half of 2019. In the same period, Vietnam’s management of the origin of “Made in Vietnam” will be more stringent.
Friends who have the idea of "saving the country by the curve", if they want to legally borrow from Vietnam, please be sure to meet the new policy of Vietnam's origin, and meet the requirement of 30% new added value.
Vietnam’s anti-dumping against China
What Vietnam can do is anti-dumping against Chinese products.
The Ministry of Industry and Trade of Vietnam announced that it will impose a temporary anti-dumping duty of 2.46% to 35.58% on aluminum extruded bars and profiles from 17 Chinese manufacturers, and has been in force since June 5.
In addition, the Ministry of Industry and Trade of Vietnam said on June 19 that since June 25, Vietnam will impose a temporary anti-dumping duty on some steel products imported from China, and the anti-dumping tax rate imposed on some painted steel products imported from China. 3.45%-34.27%. The anti-dumping duty will be implemented for 120 days.
(Content is compiled from the focus view focusvision)
Recently, however, Vietnam has successively introduced new regulations to strictly investigate the export of counterfeit Vietnamese certificates of origin to the United States. Also please pay attention to the relevant companies.
Changes in Vietnam
Vietnam was once considered a country that could benefit the most from Sino-US trade frictions.
In terms of export volume alone, Vietnam’s exports to the US increased by 36% year-on-year in the first five months of 2019! With up to $25 billion in products shipped to the United States in May, Vietnam has become the eighth largest source of US imports, and Vietnam was ranked 12th a year ago.
According to US government statistics, in the first five months of 2019, Vietnam’s exports of computers and electronic products to the United States increased by 71.6% year-on-year. In the past five months, Vietnam’s surplus to the US reached US$21.6 billion, a surge of 43% year-on-year.
At the same time, electronic products, computers, machinery and other equipment exported from China to Vietnam surged compared to the same period in 2018.
After analyzing the trade data, Nomura Holdings of Japan confirmed that in the first quarter of this year, the value of new orders received by Vietnam due to the trade turn was equivalent to about 7.9% of the country's gross domestic product.
The United States is now Vietnam’s largest export market. Under this circumstance, Vietnam is not afraid to offend the United States.
American action
US President Trump said in an interview on June 26 that "Vietnam is cheaper than China in the United States. These companies should return to the United States to set up factories. Although Vietnam is smaller than China, it is almost the worst of all countries. The abuser." He hinted that Vietnam may become his next target to increase tariffs.
On May 28, the U.S. Treasury Department announced the semi-annual exchange rate policy report and listed Vietnam as a "list of exchange rate manipulation observations."
On July 3, the US Department of Commerce said that it had initially ruled that the steel exported by Vietnam would evade tariffs. Some companies import steel from Vietnam to evade anti-dumping and countervailing duties, and will impose more than 400% tariff on steel imported from Vietnam. Among them, some products produced in South Korea and Taiwan will be shipped to Vietnam for processing and then exported to the United States as corrosion-resistant steel and cold-rolled steel.
US Trade Representative Wright Heze warned Vietnam to pay attention to trade deficit with the United States
Vietnam's reaction
As soon as the United States warned, Vietnam would be paralyzed.
Vietnam said it is working to reduce its trade surplus with the United States and has already cracked down on manufacturers that are passing through Southeast Asian countries to bypass their higher tariffs and re-export their goods to the United States. Vietnamese Prime Minister Qi Chunfu also instructed officials in early July to pay close attention to the US response to Vietnam’s monetary policy.
The US Embassy in Hanoi recently stated that it is negotiating with the authorities and hopes that "Vietnam will take measures in the short term to resolve our concerns in a constructive manner."
During the G20 Osaka Summit in late June, the Vietnamese Foreign Ministry issued a statement late at night saying that it would "intervene" detours.
Vietnam Customs issued a statement on the government website on June 9th that it has discovered that dozens of Chinese goods are pretending to be exported to Vietnam, in order to bypass the US punitive tariff measures against Chinese exports.
According to the statement, “the products that are illegally transshipped in Vietnam are mostly textile, marine and agricultural products, as well as magnetic tiles, honey, steel, aluminum and wood products.” Some importers illegally repackaged products imported from China. Labeled "Made in Vietnam" and applied for Vietnam's certificate of origin for export to the United States, Europe and Japan.
Vietnam Customs is developing a new program to better identify and punish companies that violate the rules to counterfeit Chinese products for Vietnamese products.
At present, Ho Chi Minh City has been focusing on the implementation of strict investigation of counterfeit “Made in Vietnam”. The Municipal Customs Bureau shall strengthen the supervision of ports and customs areas in the jurisdictions; and seize and severely punish violations of the scope of impersonation of origin and import of defective products. The government requires the city border defense command headquarters to strengthen patrols and seize all seaports, estuaries, yards, cargo ramps and ships. The smuggling, storage and transportation of daily necessities belonging to the border guards, as well as clothing and other pretending behaviors, should be punished in time. .
The Ministry of Industry and Trade of Vietnam has also recently issued a draft standard for “Made in Vietnam” (origin):
The place of origin must be marked on the merchandise label. If a product is produced exclusively in Vietnam or entirely in Vietnam, it will be marked as “Made in Vietnam”.
If the goods are manufactured in the final processing stage of Vietnam, it is necessary to meet the requirements of the relevant commodity code (HS) conversion regulations and the domestic new value ratio of more than 30%, in order to mark “Made in Vietnam”.
Vietnam Ministry of Industry and Trade announcement screenshot
(Originally Vietnamese, which has been turned directly by Google)
The Ministry of Industry and Commerce of Vietnam pointed out that if the draft is approved, it will help prevent unscrupulous traders from using the trade fraud of Vietnam’s “washing place”.
It is expected that Vietnam’s exports to the United States will continue to surge in the second half of 2019. In the same period, Vietnam’s management of the origin of “Made in Vietnam” will be more stringent.
Friends who have the idea of "saving the country by the curve", if they want to legally borrow from Vietnam, please be sure to meet the new policy of Vietnam's origin, and meet the requirement of 30% new added value.
Vietnam’s anti-dumping against China
What Vietnam can do is anti-dumping against Chinese products.
The Ministry of Industry and Trade of Vietnam announced that it will impose a temporary anti-dumping duty of 2.46% to 35.58% on aluminum extruded bars and profiles from 17 Chinese manufacturers, and has been in force since June 5.
In addition, the Ministry of Industry and Trade of Vietnam said on June 19 that since June 25, Vietnam will impose a temporary anti-dumping duty on some steel products imported from China, and the anti-dumping tax rate imposed on some painted steel products imported from China. 3.45%-34.27%. The anti-dumping duty will be implemented for 120 days.
(Content is compiled from the focus view focusvision)