The Anti-Dumping Duty is an additional import duty imposed on goods which are priced below their fair market value, otherwise referred to as ‘dumping’. These duties are designed to counteract the adverse effects of unfair competition and protect domestic industries from being undercut by artificially low-priced imports.
Anti Dumping Duty
How is the Anti Dumping Duty applied in the EU?
In the EU, anti-dumping measures are initiated through an investigation by the European Commission to determine whether dumping is occurring and causing injury to EU producers. If evidence of dumping and resulting harm to domestic industries is found, anti-dumping duties may be imposed on the imported goods to restore fair competition. Anti-Dumping Duties can be applied when you Import 3rd country origined goods into the EU In one of three ways:
- Ad Valorem Duty: Exported goods are taxed according to transaction value
- Specific Duties: Exported goods are taxed per specific amount of the product
- Price Undertakings: The exporter agrees to sell their products at a minimum price.
The impact of the Anti Dumping Duty on Importers and Exporters
For importers, the imposition of anti-dumping duties can significantly increase the cost of importing goods into the EU market, impacting profit margins and competitiveness. Conversely, exporters from non-EU countries may face challenges in pricing their products competitively to remain viable in the EU market.
HS Code Examples of Anti Dumping Duties
Further to the example above, we have outlined a few specific HS code examples to also consider. Please note, that these are only a few, of many examples where anti-dumping duty may be applied:
- HS 8711 60 "E-Bikes": European Bicycle Manufacturer's Association Initiaited an Investigation proving the dumping of E-Bikes produced in China. Both antidumping and antisubsidy were being Imposed. These measures are estimated to saved thousands of direct and Indirect EU jobs in the field.
- HS 4011 20 "New Bus Tires": Antidumping duties are being Imposed for bus tires originating In China due to their significantly lower prices compared to those produced In the EU.
- HS 690740 00 "Ceramic Tiles": To protect the growing EU small to medium Industries, antidumping duties are being imposed from ceramic tiles originating from China, India and Turkey.
How can ALS help clients with Anti Dumping Duties?
Custom brokers like ALS Customs Services play a crucial role in assisting clients in navigating the complexities of the anti-dumping regulations. From conducting risk assessments to ensuring proper documentation and compliance with the EU trade laws, customs brokers help businesses to mitigate the risks that are being associated with the anti-dumping measures and maintain smooth trade operations. In short, ALS helps you by:
- Consultation and guidance throughout the export process
- Checking if the Anti Dumping Duties are in effect
