Seoul, Aug 11 (Yonhap) Customs authorities here said on Monday they have uncovered 19 companies accused of evading anti-dumping duties worth a combined 42.8 billion won ($30.8 million) while importing low-priced hot-rolled steel plates.
The companies allegedly avoided paying duties by declaring their goods under product codes not subject to anti-dumping duties, according to the Korea Customs Service.
Some also reportedly used the names of suppliers eligible for lower tariff rates without authorisation. The agency said it plans to recover the evaded taxes and even pursue criminal investigations in case of serious violations, reports Yonhap news agency.
Anti-dumping duties are imposed when imported goods are priced below fair market value, deemed to cause harm to domestic industries. The duties are levied to bridge the price gap and protect local businesses from unfair competition.
Last month, South Korea's trade watchdog made a preliminary decision to impose anti-dumping tariffs on hot-rolled steel plates from Japan and China after its initial investigation identified potential damage to the domestic industry.
Under the decision, the Korea Trade Commission (KTC) will ask the Ministry of Economy and Finance to impose an anti-dumping tariff of between 28.16 and 33.57 percent on hot-rolled thick plates imported from the two countries, according to its officials.
To prevent further damage during the upcoming formal investigation period, the KTC also recommended imposing anti-dumping tariffs of 43.35 percent on optical fiber products from the two countries.
The KTC launched its investigation into alleged dumping by six Japanese firms, including JFE Shoji Corp., and five Chinese producers, such as Benxi Iron and Steel Group, following a complaint filed by Hyundai Steel Co., a leading South Korean steelmaker.
Separately, the commission also began probing allegations that three Chinese companies sold single-mode optical fiber products below fair market value. The investigation was initiated after LS Cable & System Ltd., South Korea's largest cable manufacturer, filed a complaint.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor