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According to the Korean A662 Grade C steel Customs Service (KCS) on April 14, 2025, a special working group has been established to investigate companies suspected of evading anti-dumping duties from April 14 to July 22, 2025. This investigation focuses on multiple types of steel products, aiming to crack down on behaviors that evade tariffs through false declarations, third-party transit, and other means.
This action is a further response to the "Unfair Trade and Risk Management Plan for Steel and Aluminum Materials" released by the South Korean Ministry of Industry, Trade and Resources on March 19, 2025. KCS stated that if companies are found to have engaged in evasive behavior, they will pursue tax payments in accordance with the law and hold them criminally responsible.
The investigation covered 22 commodities for which anti-dumping duties had been officially applied, including steel structure H-beams from China and flat rolled stainless steel products from China, Indonesia and Taiwan, China A662 Grade C steel. In addition, silicon manganese alloys from India and Vietnam are also under investigation. Meanwhile, three products that are still in the temporary anti-dumping stage, including cold-rolled stainless steel from Vietnam and medium thick stainless steel plates from China, are also included in this investigation.
The Customs Department cited past cases and pointed out that a company once declared Japanese stainless steel bars subject to 15.39% anti-dumping duties as other tax numbers to avoid taxes, and was ultimately pursued for 270 million Korean won (approximately 189700 US dollars) in taxes.
It is worth mentioning that South Korea has lifted anti-dumping duties on stainless steel bars from India, Japan, and Spain A662 Grade C steel in January 2025. Market sources believe that despite KCS's investigation, the impact on the local steel market in South Korea is limited, mainly due to a significant reduction in offers from Chinese resources after the previous tax rate was introduced.
KCS pointed out that changes in the global trade situation may prompt some countries to avoid trade barriers through third-party transit when facing high tariffs from the United States. For example, some countries whose exports are restricted due to the US government's strengthened tariff policies (such as 25% equivalent tariffs) may choose to transit through a third country. Although former US President Trump announced a 90 day suspension of the 25% equivalent tariffs on South Korea on April 9, 2025, the current global benchmark steel tariff of 10% is still in effect, and risks still exist.
