Anti-dumping and countervailing duties as well as safeguard duties, i.e. additional duties
Anti-dumping measures can be taken when under-priced imports cause considerable damage to EU industries or pose a risk of such damage, and when those measures serve EU interests. Anti-dumping and countervailing duties are levied on goods in addition to the general duty, and they are added to the value added taxable value of the goods.
In Finland, anti-dumping matters are the responsibility of the Department for External Economic Relations of the Ministry for Foreign Affairs. Anti-dumping duties are levied by Customs.
How is anti-dumping investigated?
An anti-dumping investigation is opened through a written complaint submitted to the Commission by the European industry concerned or someone on its behalf. The complaint is, as a rule, lodged with the competent authority in the Member State. The authority checks the correctness of the complaint and participates in the investigation as the processing of the matter proceeds.
Public notice in the Official Journal of the EU
If the complaint contains enough evidence and grounds, the Commission will publish a public notice of the initiation of an anti-dumping proceeding in series C of the Official Journal of the European Union (OJ). The notice contains the following information: the product being investigated, the exporting countries, the time reserved for the interested parties to make their views known to the Commission.
The interested parties can request to be heard by the Commission or they can request that an official meeting be held where they can take a stand on the claims of the opposite party. It is important to be heard within the given time limit, because it is the only way to ensure the supervision of one’s interests at the later stages of the processing of the matter.
Provisional anti-dumping duty
When there is enough proof of the injury caused by the dumping, a provisional anti-dumping duty is imposed for a period of six months. This duty is levied so that a cash deposit or other equivalent guarantee covering the amount of the anti-dumping duty is lodged in connection with the import of the goods to the EU. At this stage of the investigation, a survey of each exporter is carried out. The definitive anti-dumping duties are established based on this survey. An exporter that has entered into a price undertaking can be granted a partial or total exemption from the anti-dumping duty.
Definitive anti-dumping duty
In connection with the imposition of a definitive anti-dumping duty, a decision is also made on the levy of the provisional duty. At this point, the provisional duty cannot be raised. The definitive anti-dumping duty is imposed for five years. One year after the imposition, its level can be checked, where justified. Around six months before the expiry, a notice of it is published in series C of the OJ. If, at this time, there is sufficient evidence of a likely continuation of the disturbance, the anti-dumping duty shall remain in force pending the outcome of the review.
The provisional and the definitive anti-dumping duty are published in series L of the OJ. The duty enters into force on the day following that of its publication. A decisive moment in respect of the levy of the anti-dumping duty is the release of the goods from customs supervision to free circulation in the EU.
The anti-dumping duty can be levied as a percentage rate based on the customs value. It can also levied as an amount equal to the unit price or as the difference between the base price determined through the anti-dumping regulation and the customs value, where the latter is lower. Finnish Customs publishes the currency conversion rates at the beginning of each month on its website.
Countervailing duties are imposed in the same way as anti-dumping duties.
How are the anti-dumping measures shown in the Finnish Customs Tariff?
For each commodity code subject to an anti-dumping measure, there is a reference (number 2) in the column for appendices in parts 1 and 2 of the Customs Tariff.
The application of these measures is made easier by the list of the applicable measures in appendix 2 of part 3 of the Customs Tariff. In addition to the commodity codes concerned, the list also contains, for each commodity code, the goods description, the country that the measure concerns, the anti-dumping or countervailing duty rate as well as, when the measure only concerns a particular company, the name of the company and the applicable Taric additional codes. New anti-dumping and countervailing measures are published as customer notices on the Customs website.
Customs tool regarding anti-dumping and countervailing duties
The customs tool can be used for levying anti-dumping and/or countervailing duty on products brought to an artificial island, a fixed or floating installation or any other structure in the continental shelf or the exclusive economic zone of a Member State. The Customs Tool Regulation is one component of the modernisation of the EU's trade defence instruments. Instruction on antidumping and countervailing duties
Safeguard measures (a duty, a quota or a combination of the two) will be imposed, if unexpectedly increasing imports pose a threat to EU industries. A quota will be set at least at the same level as the average imports over the last three years.
As a rule, the investigation must be completed within nine months. In exceptional circumstances, the investigation must be completed within eleven months. A provisional measure may be implemented for 200 days. A definitive measure may be implemented for no longer than four years, including the duration of the provisional measure. The definitive measure may be extended after this, but its total duration may be no longer than eight years.
Unlike anti-dumping and countervailing measures, which concern the products of only one or a couple of countries of origin, safeguard measures concern all imports of certain goods from third countries, i.e. from non-EU countries. Developing countries may, however, be excluded from the application of the measures. Safeguard measures have seldom been imposed.
Additional import duties for the United States
Additional import duties were implemented 1 May 2005 regarding the import of certain products originating in the United States, since it was found that the tax treatment of foreign trade companies by the United States constituted an export refund, which violated the WTO and GATT agreements. The United States also failed to bring its legislation into conformity with the requirements covered by the WTO agreements. The additional import duty is an ad valorem duty and tariff concessions are no longer granted for the products.
Every year, from 1 May, the Commission reviews products subject to the additional import duty as well as the amount of import duty. The review can be undertaken at other times as well if need be. The implementation of additional import duties will continue until further notice and until the United States has fully implemented the recommendations by the WTO. The Commission’s regulations are published in EU’s Official Journal, the L series, and Customs informs of any changes with customer bulletins at tulli.fi. Further information in the Customs bulletin: Additional import duties on certain products originating in the United States (in Finnish or Swedish).
An anti-dumping duty can be imposed if goods have been brought in at a dumped price, i.e. they have been sold for export at a price that is lower than the cost of production or the domestic prices. Anti-dumping duties are often imposed on particular companies.
A countervailing duty can be imposed if a country has subsidised its exports. A product may be subject to both an anti-dumping duty and a countervailing duty.
A safeguard duty or a quota can be imposed if unexpectedly increasing imports pose a threat to EU industries. Safeguard measures can be imposed quickly, and their validity is shorter than that of anti-dumping and countervailing measures. The safeguard measures concern all non-EU countries, i.e. third countries.
The imposition anti-dumping and countervailing measures is always preceded by an investigation. The investigation takes up to 14 months (anti-dumping duty) or 13 months (countervailing duty).
Definitive measures, an anti-dumping duty or a countervailing duty, can be imposed after the investigation. They are to lapse after five years.
Provisional measures. The Commission can impose provisional measures during an investigation, no earlier than 60 days from initiation and no later than 7 to 8 months thereafter. A provisional anti-dumping duty is imposed for a period of up to of six months. A provisional countervailing duty is imposed for a period of up to of four months. A guarantee must be lodged them. The guarantee is collected as definitive, if a definitive anti-dumping or countervailing duty is imposed.
Price undertaking. An exporter undertakes to raise its export prices so that no injury will be caused to the EU. The Commission can accept the undertaking offered by the exporter. The exporter presents a price undertaking invoice in accordance with the regulation and is completely exempted from the anti-dumping or countervailing duty.
Valid commercial invoice In some cases, the exporter is to present a valid commercial invoice according to the template, so that a reduced individual anti-dumping or countervailing duty can be applied upon import.
The Commission can initiate an interim review if the circumstances have changed after the imposition of the definitive measures. After the review, the Commission can e.g. change the anti-dumping duty rate. The interim review is initiated no earlier than a year after the imposition of the anti-dumping or countervailing measures.
A new exporter can apply for a review for a new exporter if it has not exported goods to the EU before the anti-dumping or countervailing measures. After the review, the company can get an individual duty.
An expiry review is often initiated before the expiry of the definitive measures. What is reviewed is whether the imposition of the measures should continue. This is also the only thing reviewed. After the expiry review, e.g. the goods concerned or the duty rates will not be changed. The anti-dumping or countervailing duty is imposed during the expiry review.
Customs tool. On 2 July 2019, the Commission adopted an implementing regulation establishing a so-called customs tool, in accordance with which anti-dumping and/or countervailing duties will be collected in the above-mentioned situation. The Regulation began to apply from 4 November 2019.
- Commission Notice concerning the reimbursement of anti-dumping duties: Guidelines on how to apply for a refund of anti-dumping duties
- Currency conversion rates
- Ongoing anti-dumping and countervailing investigations (in Finnish)
- Anti-dumping and countervailing duties in force (in Finnish)
- Ongoing safeguard measure investigations (in Finnish)
- Bicycle parts from China – exemption of imports of essential bicycle parts from the anti-dumping duty through application of the end-use procedure
- EUR-Lex, where e.g. the Official Journal of the EU is published
- The European Commission's TARIC database