TURKIYE HAS OPENED AN ANTI – DUMPING INVESTIGATION AGAINST KOREAN STEEL PRODUCTS
In TURKIYE, preliminary examination and investigation is carried out by the Turkish Ministry of Commerce, ex officio or upon complaint application, in accordance with the procedure determined regarding protection measures in imports. Upon application to the General Directorate of Imports, if the necessary conditions are met within the framework of the relevant legislation, the Unfair Competition in Import Evaluation Board (“Board”) can open an investigation and as a result of the investigation, measures can be taken if dumping, damage and causal link are detected.
With the Communiqué No. 2024/14 published in the Official Gazette dated 02 April 2024, based on the application made by the domestic producer Ereğli Demir ve Çelik Fabrikaları T.A.Ş., 7208.51, 7208.52, 7225.99 and 7208. 90.80 originating from the Republic of Korea customs tariff positions and 7211.13.00.11.00, 7211.13.00.19.00, 7211.14.00.21.11, 7211.14.00.21.12, 7211.14.00.00. 29.11, 7211.14.00.29.12, 7211.14.00.31.00, 7211.14.00.39.00, 7211.19.00.21.00, 7211.19.00.29.00, 7225.40.40.00.00 and 7225. 40.60.00.00, 7225.40.40.00.00 and 7225.40.60.00.00 customs tariff statistical positions classified under the “hot rolled flat steel not in coils” (thick plate) product within the scope of the dumping investigation opened.
In the public application announced together with the investigation notification, it is stated that flat steel (thick plate) imports originating from South Korea have increased very rapidly in the last two years and have harmed the domestic producer. It is stated that South Korean steel producers export to Türkiye at prices lower than their domestic prices. When calculating this price, it is stated that South Korean companies, which have the same production technology as Ereğli, cut prices a lot even though their labour costs are higher. It is also noted that this price reduction is achieved by the South Korean government by providing energy subsidies and export financing support subsidies to importers residing in Türkiye with long-term payment options with very low financing conditions.
The dumping investigation subject to ANNOUNCED is so far the largest dumping investigation in the history of TURKIYE after the flat plate investigation opened against the People’s Republic of China. Complainant domestic producer is EREĞLİ Demir-Çelik A.Ş. It is the only producer of flat steel (thick plate) products in TURKIYE and is a company controlled by the state (Army Foundation). The investigation that may take up to one year or, in case of extension, one and a half years. Decisions can be taken at any time with the preparation of the investigation report.
There are crucial stages and decision process such as determination of defence strategy, presentation of information and full cooperation until 08.05.2024, commitment during the investigation process, submission of additional reports and explanations, technical meetings for acceptance of commitment, participation in oral public meetings, determination of strategy if temporary measures are taken, determination of strategy if a decision for permanent measures is taken (litigation or the administrative path) for the Korean Producers.
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