Overview
2022 has been an interesting year as the world emerged from the pandemic. Hard core restrictions from the pandemic are all but gone and face-to-face meetings are starting to become the norm again. We are not quite at the fervour that we were at pre-pandemic, although the chorus would agree that 2021 remains an exceptional year.
Going into 2023, the prognosis is that it is going to be a challenging year with headwinds. Yet, this may not be the case for trade law related matters, where there have been interesting developments in 2022, and continued supply chain disruptions which are seeing a changing global trade play.
We provide key highlights of developments across Southeast Asia, such as regulatory activity relating to anti-dumping and safeguard measures, developments relating to export/import, free trade agreements, as well as sanctions. Briefly on trade remedies, there are developments in anti-dumping and safeguard duties under Indonesia, Philippines, Thailand, and Vietnam. On trade protectionism which has been creeping into various countries, we highlight Myanmar’s rules to curb the outflow of foreign currency, rules on border trade with Thailand and Philippines’ introduction of the “Admission Temporaire/Temporary Admission” Carnet System and its imposition of tariffs on certain electric vehicles and parts. On the flip side, to increase trade, we have the World Trade Organization (“WTO”) ruling against Indonesia’s nickel export ban and updates on the progress of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Finally, a major play has been around sanctions, with Singapore introducing sanctions for the first time independent of the United Nations and the addition of Myanmar to the Financial Action Task Force’s blacklist of high-risk jurisdictions. Trade has never been more exciting.
The RTA Competition & Antitrust Team continues to be at the forefront of trade issues across Southeast Asia, being the only dedicated practice of its kind entirely based in this region. The Team has done very well in its ranking, maintaining a Tier 1 Ranking in Chambers AsiaPacific as well as ranked in Chambers Global. Our Team members are highly ranked with Melisa Uremovic and Kala Anandarajah cited as leading lawyers. We have also seen several new hires as well as returnees across the different offices. We are especially pleased to have Joshua Seet re-join us and now a partner in the team (bringing the total number of partners to 4 in Competition & Antitrust) in Singapore and over 10 across the region.
Part 1 of our Regional Trade Report 2022 outlines the anti-dumping and safeguard measures taken by the regulators in the region.
Anti-Dumping & Safeguards
In 2022, actions were taken by countries in relation to anti-dumping and safeguard measures. This included anti-dumping and safeguard duties being imposed in countries like Indonesia, Malaysia, Philippines, Thailand, and Vietnam, whereas certain anti-dumping duties were terminated in Malaysia. We share some of these actions taken by the regulators.
In Indonesia, under Law No. 34 of 2011 on Anti-Dumping, Countervailing, and Safeguard Measures, the Ministry of Trade initiated investigations into two anti-dumping cases and two safeguard cases between 2021 to 2022.
The anti-dumping investigations involved Polyester Staple Fiber and the hot-rolled coil of other alloys. Certain PSF products originating from India, China, and Taiwan are now subject to anti-dumping duties as stipulated under the Ministry of Finance Regulation No. 176/PMK.010/2022; and are effective from 12 December 2022 to 12 December 2027. Certain hot-rolled coil alloys originating from China are also now subject to anti-dumping duties as stipulated under Ministry of Finance Regulation No. 15/PMK.010/2022, which are effective from 15 March 2022 to 14 March 2026. Additionally, the Ministry of Trade is currently conducting a sunset review over the anti-dumping measures imposed on frit products originating from China, which has been in effect since 2017.
The safeguard investigations involved ceramic tile products and certain steel alloys. Certain ceramic tile products are now subject to safeguard measures as stipulated under Regulation of Ministry of Finance No.156/PMK.010/2021, which are effective from 18 November 2021 to 17 November 2024. Certain steel alloys are now subject to safeguard measures as regulated under Regulation of Ministry of Finance No. 169/PMK.010/2022, which are effective from 22 December 2022 to 21 December 2024.
In Malaysia, anti-dumping and safeguard duties are covered under the Countervailing and Anti-Dumping Duties Act 1993, the Countervailing and Anti-Dumping Duties Regulations 1994, and the Safeguards Act 2006 and Safeguards Regulations 2007. Amongst others, we highlight two notices:
- On 10 June 2022, a Notice of Termination came into operation for the expedited review of anti-dumping duties with regard to imports of pre-painted, painted or colour coated steel coils originating or exported from Shandong Ruifeng Composite Material Co. Ltd from China; and
- On 1 August 2022, a Notice of Impending Termination was issued in respect of anti-dumping duties on imports of cold rolled stainless steel in coils sheets or any other form originating from China, Korea, Taipei and Thailand. This had been imposed for the period from 8 Feb 2018 to 7 Feb 2023. In this regard, the Ministry of International Trade and Industry sought public input from interested parties on: (i) whether the continued imposition of the anti-dumping duties is necessary to offset the dumping of the subject merchandise; and (ii) whether the injury is likely to continue or recur if the duties were removed.
In Philippines, anti-dumping and safeguard duties are covered under the RA 8800 or the Safeguard Measures Act, RA 8752 or the Anti-Dumping Act of 1999, and RA 8751 which provides for countervailing measures. In 2022, safeguard measures were enforced on the import of products such as cement, High-Density Polyethylene Pellets and Granules (“HDPE”), and Linear Low-Density Polyethylene Pellets and Granules, etc. Amongst others, one of these measures was a definitive safeguard duty imposed on imported HDPE pellets and granules from various countries for a period of three years, subject to exclusions for specified related products and for imports originating from specified developing countries.
In Thailand, anti-dumping and safeguard measures are covered under the Anti-Dumping and Countervailing Act B.E. 2542 (1999) (“AD Act”) and the Safeguard Measures on Increased Imports Act B.E. 2550 (2007). In 2022, the authorities initiated 3 anti-dumping cases on: (i) Biaxially Oriented Polypropylene (BOPP) film in common grade originating from China, Indonesia, and Malaysia; (ii) stainless steel pipes and tubes originating in South Korea, China, Taiwan and Vietnam; and (iii) iron steel pipes and tubes originating in China and Korea. Separately, there are cases in which the Ministry of Commerce waived the imposition of anti-dumping duties. For example, the Ministry of Commerce waived anti-dumping duties for a period of six months on products such as tinplate and tin-free steel from China, South Korea, Taiwan, and the European Union. The exemption was deemed necessary to prevent a negative impact on Thailand’s consumers. This was the third successive six-month duty exemption period for these products and will expire in March 2023.
In Vietnam, anti-dumping and safeguard measures are covered under the Law No. 05/2017/QH14 on Foreign Trade Management and its guiding instruments, and international treaties such as the General Agreement on Tariffs and Trade, WTO Anti-Dumping Agreement, WTO Agreement on Subsidies and Countervailing Measures and WTO Agreement on Safeguards. In 2022, Vietnam’s regulators continued to actively apply trade remedies to establish a fair competition environment and to protect the legitimate interests of domestic manufacturing industries. Its Ministry of Industry and Trade initiated investigations on various anti-dumping and safeguard cases, such as its Decision 1991/QD-BCT dated 30 September 2022 that applied anti-dumping duties to imports of specified table and chair products from China; as well as its Decision No. 1624/QD-BCT dated 15 August 2022 that applied anti-dumping duties to specified welding products from Malaysia, Thailand, and China.
Commentary
Regulators continue to actively monitor, investigate and impose anti-dumping and safeguard duties against errant businesses. Potential competitors can raise complains to require these investigations too. Regulatory investigations can potentially disrupt business-as-usual hence it is important that businesses are able to respond in a swift yet accurate manner. Do monitor regulatory and case developments to make any necessary changes to business plans. Always ensure that appropriate pricing and export policies are put in place that are updated per the developments.
Please click here for the full version of the Rajah & Tann Asia Regional Trade Report 2022.
