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Measures on dumping and anti dumping presentation
- 1. Dumping and Anti- DumpingMeasures
- 2. Meaning: The offering forsale of large quantities of goods on foreign markets at low prices in order to maintain a high price in the home country, thestocks piled up even after sales. DUMPING
- 3. ANTI-DUMPING Meaning: Anti-dumping duties aretaxes imposed on imported goods in order to compensate for the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing country.
- 4. Dumping and Anti –Dumping Measures When it is impossible to obtain a comparable domestic price because there are none or low volume sales in the ordinary course of trade in the domestic market, either export prices to third countries or a “constructed value” is used in price comparison.
- 5. Investigating injuriousdumping The European Commission is responsible for investigating dumping claims and imposing measures. The Commission opens an investigation if it has sufficient evidence that imports into the EU are made at dumped prices and are causing injury to European industry. Typically, such evidence is communicated to the Commission by the European producers exposed to the unfair competition of dumped imports (or jointly by trade unions and European industry) by means of an official complaint.
- 6. The anti-dumpinginvestigation The Commission opens an anti-dumping proceeding (investigation) by publishing a notice in the EU’s Official Journal. The investigation checks: whether there is dumping by the producers in the country/countries concerned; whether the European industry concerned suffers ‘material injury’; whether there is a causal link between dumping and injury, and; whether putting measures in place is not against the European interest. Only when all four conditions are met can the Commission put anti-dumping measures in place. The time limit for the Commission’s investigation is 14 months. The results are then published in the Official Journal.
- 7. Anti-dumping measurescan be put on imports of specific products if the Commission’s anti-dumping investigation justifies it. These measures are usually in the form of an ‘ad valorem’ duty. Other measures that can be applied include a fixed or specific amount of duty or, in some cases, a minimum import price. Price undertakings may also be accepted instead of anti-dumping duties. This is where the exporter agrees not sell products in the EU at prices below a minimum amount. If the Commission agrees to an undertaking, then the anti-dumping duties will not be collected on those imports. The Commission is not obliged to accept an offer of an undertaking. The importer in the EU pays the duties and the national customs authority of the EU country collects them. The Commission monitors measures to make sure they are effective and respected by exporters and importers.