When we talk about legality in foreign trade, it is common to hear about anti-dumping measures. In the following post we will discuss what dumping and antidumping are, the rights of those affected and what measures are exercised against those who engage in these types of practices. In addition, we will explain how to report this unfair practice.
What is dumping and antidumping?
Of course, for what is antidumpingFirst, we must understand dumping: it is the unfair practice of selling products below the value of their production cost with the aim of gaining market share, getting rid of stock, or simply harming the competition, altering the market in a premeditated way.
Internationally, dumping is not prohibited; however, a series of measures and rights are established to curb these practices. Therefore, antidumping are those measures that are implemented to try to mitigate the effects of this unfair competition practice that is so widespread today.
The acts of dumping extend from the most common sectors to be seen, such as consumer goods and automotive
automotive
to much less common ones such as phytosanitary phytosanitary products or chemicals.
Antidumping duties and measures
Provisionals
They are those that are implemented during the investigation process, if it has been determined that there is dumping, and may not exceed the difference between the EU price of the exported merchandise and the domestic price of such merchandise.
Once the preliminary existence of dumping has been determined, the alleged market alternates must pay an amount as a deposit that serves to apply the provisional anti-dumping measures established.
Definitive
At the end of the investigation, it will be decided whether the provisional measures (if any) are sufficient or whether another series of measures and anti-dumping duties should be applied, applicable for a maximum period of 5 years. The complainants may replace these anti-dumping duties with an undertaking by the unfair competitor to modify prices to eliminate dumping and injury.
How do you report dumping?
The procedure can take several courses of action. The most recommended is to contact the Antidumping Service of the European Commission. The complaint filed must be accompanied by evidence of the act of dumping, as well as the effects it is considered to be causing. The information of the Intrastat information can be very useful in these cases to be presented as evidence.
Within 45 days the Commission will decide whether to accept the complaint, which must be accepted if the complaint represents at least 25% of the Community industry. Once accepted, within a maximum period of 15 months, it must issue an opinion on the existence of dumping, the damage it has caused and those affected.
Partida Logistics, experts in customs
customs clearance
we always recommend to act under the strictest legality. To avoid incurring in illegalities due to ignorance, it is best to have a professional in the sector to advise us on the commercial decisions we make.
