The U.S. Department of Commerce issued a preliminary determination of subsidies to the 'Korean pharmaceutical company's local subsidiary in Vietnam.'
According to the Ministry of Trade, Industry and Energy on the 31st, the U.S. Department of Commerce announced on the same day in the Federal Register that a preliminary determination had been made that the pharmaceutical capsule manufacturer received countervailable subsidies in the investigation of countervailing duties on Vietnamese pharmaceutical capsules (Hard Empty Capsule).
The pharmaceutical capsule manufacturer is our corporation's local subsidiary in Vietnam, and the total subsidy rate was 2.15%. The U.S. Department of Commerce will decide whether to impose countervailing duties after conducting corporate due diligence, submission of stakeholder legal documents, and public hearings.
The Ministry of Trade, Industry and Energy has been moving swiftly since the investigation by the U.S. Department of Commerce began on Nov. 20 last year. On Dec. 9 last year, it conducted Korea-U.S. bilateral consultations, and on Dec. 26 last year, it held Korea-Vietnam bilateral consultations.
The Ministry also conducted several meetings with domestic pharmaceutical corporations and related agencies to gather opinions. It submitted a government response document by preparing a public-private joint strategy for consistent and effective responses.
The Ministry plans to respond vigorously by actively arguing that 'financial contributions from a country across borders are not subject to tariff imposition' during the remaining investigative procedures until the final determination. In addition, it intends to continuously consult with the U.S. government to ensure that the final determination does not hinder our corporations' smooth business operations.