Post Date : 95-06-28
The Bureau of Foreign Trade (BOFT), under the Ministry of Economic Affairs (MOEA), has indicated that on 1 June 2006, the South Korean government’s Ministry of Finance & Economy formally announced its decision not to impose provisional anti-dumping duties on polyester filament draw textured yarn (DTY) products from Taiwan.

According to the Ministry of Finance & Economy’s announcement, on 21 November 2005, the Korea Trade Commission (KTC) began an anti-dumping investigation on DTY products from Taiwan, Malaysia and mainland China. On 17 April 2006, the KTC announced its preliminary determination that a dumping margin of 6.64% to 18.43% would be imposed on products of the Taiwanese manufacturers under investigation. This case was then submitted to Korea’s Ministry of Finance & Economy, which concluded that based on the nature of the products in question, the influence on related industries and other factors regarding the dispute, it would be prudent to carry out a more thorough investigation. The Ministry therefore decided to refrain from imposing provisional anti-dumping duties. After the KTC reaches a final verdict, the Ministry will decide and announce whether it will levy anti-dumping duties. Taiwan is extremely pleased with the Korean government’s decision.

Before Korea’s anti-dumping investigation began, the BOFT expressed its wish, via both the Taipei Mission in Korea and the Korean Mission in Taipei, that Korea not undertake an investigation of DTY products from Taiwan. And following the preliminary determination, BOFT Director General Huang visited the Korean Mission in Taipei, to express Taiwan’s concern to Representative Wu, and to request that Korea refrain from levying provisional anti-dumping duties on the products in question until after a final determination was made.

Following this, on 22 May 2006, BOFT Deputy Director General Hsu led a delegation to Korea to visit both the KTC and the Ministry of Finance & Economy, to carry out bilateral negotiations on this case. In these negotiations, Taiwan emphasized its displeasure with the KTC’s preliminary determination, and stressed that it was asking the Taiwan government to take countermeasures against Korea. Taiwan urged the Korean government not to impose anti-dumping duties, considering Korea’s large trade surplus against Taiwan in recent years, as well as the fact that imposing such duties would increase costs for Korea’s down-stream fabric producers.

Taiwan’s exports of DTY to Korea are valued at approximately US$38 million per year. Korean companies use these products to manufacture around US$96 million worth of fabric, which is then shipped back to Taiwan. The Korean government’s decision will help to maintain the trade relationship between our two countries, creating a win-win situation for both sides.

The Korean government is to make a final determination on this case four months after the 17 April 2006 announcement of its preliminary determination. (The final determination is thus expected before the end of this August.) The BOFT has requested the Taiwanese firms involved in this case to cooperate with the investigation to the best of their ability, given the kind consideration that the Korean government has shown us. The BOFT will also convene a meeting within the next few days with the domestic companies that are involved, to discuss Taiwan’s response to the subsequent investigation. We will also begin making preparations as soon as possible for Korean investigative authorities to visit Taiwan to conduct on-site verification, in the hope that Korea would make a final determination that is beneficial to Taiwan.