Japan's domestic steel industry is calling on the government to introduce new trade measures to prevent potential transshipment by foreign exporters who are subject to anti-dumping duties by Tokyo.
A group of five major steel industry groups — Japan Iron and Steel Federation (JISF), Special Steel Association of Japan, Japan Stainless Steel Association, Japan Wire Products Association and Non-integrated Steel Producers' Association — jointly announced an official request to the Japanese government on 18 August. The groups urged swift action to establish a mechanism that would block transshipment tactics used to evade anti-dumping tariffs.
This comes as Tokyo lacks an effective trade policy to close the loopholes, particularly in the definition and conditions of transshipment, that allow foreign exporters, who are subject to anti-dumping duties, to sidestep the tariff, according to the groups. Exporters can reroute shipments through third-party countries or make minimal modification to products, enabling them to be classified as outside the scope of existing anti-dumping measures.
The call for action has intensified following a surge in low-cost Chinese steel products imports since 2024, according to a JISF's representative who spoke to Argus. Tokyo on 13 August started an investigation into an alleged breach of anti-dumping regulations by Chinese and South Korean hot-dip galvanised products exporters, on the back of complaints from Japanese domestic steel producers.
But the steel industry groups warned that even if the Japanese government decided to impose the anti-dumping tariff on offending exporters, low-priced steel products would continue to flood the Japanese market without additional safeguards.
Japan and Indonesia remain the only G20 economies without legislation specifically targeting transshipment circumvention, according to JISF.
The current Japanese law requires a separate and year-long investigation to identify potential transshipment apart from the probe on initial anti-dumping regulations, according to the groups. This approach is too slow to be effective, a JISF representative told Argus.
Major economies including EU and the US have more agile trade systems that allow for quicker intervention against the transshipments, according to JISF.
The proposal to close the loophole was previously discussed at the Council on Customs, Tariff, Foreign Exchange and Other Transactions under the ministry of finance in 2024. But the request did not prompt official measures, partly because some council members voiced concerns that such policy could be perceived as an act of protectionism, JISF told Argus.
The industry groups remain optimistic, expecting the council to revisit the issue after September, JISF added.
