Korea Customs Service Strengthens Inspection and Analysis of Heavy Plate Imports: "Blocking Evasion of Anti-Dumping Duties and Disguised Imports"

The Korea Customs Service announced on June 17 that it will conduct a special crackdown until the end of next month to prevent the importation of Chinese heavy plate disguised as other items in order to evade anti-dumping duties.

Anti-dumping duties are a type of tariff imposed when the import price (dumping price) of goods is lower than the normal value (such as the usual transaction price of similar goods in the exporting country), causing harm to domestic industries. The amount imposed is equivalent to the difference between the normal value and the dumping price, added to the basic tariff. These duties are currently imposed on 26 items, including H-beams and plywood.

Chinese heavy plate is also subject to anti-dumping duties. According to a preliminary investigation by the Trade Commission, provisional anti-dumping duties ranging from 27.91% to 38.02%, depending on the supplier, have been imposed on Chinese heavy plate since April for a period of four months. The Korea Customs Service explained that the main investigation is still ongoing.

In particular, as the U.S. administration has strengthened its tariff policies, the risk of goods from third countries being exported to the domestic market at dumping prices has increased. In response, the Korea Customs Service has been conducting a "comprehensive inspection of anti-dumping duty evasion practices" since April 14.

This crackdown reflects media reports and concerns from related industries that some importers may attempt to evade anti-dumping duties imposed on Chinese heavy plate by treating the surface with paint or metal and importing it under different product names, such as color-coated steel sheets.

During the crackdown period, the Korea Customs Service plans to select items suspected of disguised importation (such as color-coated steel sheets) for physical inspection and to strengthen analysis for accurate product classification in order to verify whether the imported goods match the declared goods.

If, as a result of physical inspection and analysis, the goods are determined to be heavy plate, anti-dumping duties will be imposed. For importers with a high risk profile, the Korea Customs Service plans to comprehensively review their import and export records, tax data, and foreign exchange transaction records and initiate a customs investigation if necessary.

Furthermore, if illegal activities such as customs evasion are identified during the import inspection and customs investigation process, the Korea Customs Service plans to file criminal charges and impose strict penalties.