Imported float construction glass luckily to avoid imposed safeguard tax

The decision, which was made after six months of investigation, said that Vietnam will not apply any safeguard measures (imposing high import tax, applying quota scheme or requiring import licenses) on construction glass imports.

 

Prior to that, three domestic construction glass producers, Viglacera Float Glass Company, Vietnam Float Glass Company and Vietnam Float Glass Industry, petitioned the Ministry of Industry and Trade, complaining about the affects of imports on local production. The producers asked the ministry to carry out a probe to apply safeguard measures which they think are necessary to protect local production.

 

The three producers proposed that the government impose an absolute duty rate of US$0.60 per square meter on all types of imported float glass for a period of four years.

 

According to Tran Quoc Thai, Chairman of the Vietnam Glass Association, many glass producers have to shut down their workshops due to glass imports.

 

Thai said that Vietnam Glass Industries under Japan’s Nippon Sheet Glass Group, one of the eight member companies of the association, has completely halted production. Meanwhile, both Dap Cau Glass Factory under Viglacera and Kien An Glass Factory in Hai Phong have shut down one production line.

 

However, the Ministry of Industry and Trade concluded the main reason making difficulties for domestic producers is not the imports, but the high cost of raw materials. Besides, domestic producers have also suffered because of the economic downturn and trade fraud.

 

MOIT’s Minister Vu Huy Hoang decided that imposing safeguard measures at this moment prove to be unreasonable since domestic production has recovered gradually when prices of raw materials has come closer to the world price.