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What is Anti-Dumping Duty?

An Anti – Dumping Duty is an import levy applied additionally to normal Custom Duty across the entire European Union. Since dumping is a process where a company exports a product comparatively at lower prices than that of charged at home market. Hence, Anti – Dumping Duty (ADD) provides protection against both the dumping of all the exportable heavy materials in the EU at prices considerably lower than the normal set market value and the loss could be suffered by the EU industries. It is basically a protective charge, imposed on foreign imports by the domestic government to set the fair value of the goods precisely works for steel, aluminum and other metallic or heavy materials either imported or exported. Normally the reference price is what the exporters’ charges for comparable sales in the home market. Each ADD covers definite goods, countries of goods origin or of export etc.

Anti-Dumping Duty Rates for Different Materials in UK

Regulation (EU) 2016/1036 is the basic Anti – Dumping Duty regulation to protect the dumped imports from countries not being the members of the European Union (EU). Basically an EU regulation governs each individual ADD value. It is either charged additionally or independently to any other charges to which the imported items are liable.

Anti – Dumping Duty Rates UK:

The rates of the definitive anti-dumping duty applicable to the product and produced by the companies below shall be as follows:

Company Definitive duty rate – Euro per kg net TARIC Additional Code
Anhui Jinhe Industrial Co. Ltd. 4.58 C046
Suzhou Hope Technology Co. Ltd. 4.47 C047
Anhui Vitasweet Food Ingredient Co. Ltd. 2.64 C048
All other companies 4.58 C999

Source: GOV.UK

System’s Process

Usually the Commission issues an informatory notice of anti – dumping procedure as prescribed by Regulation (EU) 2016/1036 in the Official Journal of the European Union.

  • It mentions about the filed complaint with the detailed product classification with the volume and applied price.
  • It also confirms the procedure to be implemented referring all the available evidences and advisory committee.
  • It invites interested parties with relevant information to the dumping of the goods for further arguments. For this, the commission allows a time of 30 days of final hearing or to submit any written request.

When the deep investigation for ADD is fully done then a Provisional ADD may be executed. It can be imposed only after 60 days of process initiation but must be done before 9 months. Provisional ADD may be paid either a cash credit or a guarantee. For this process claims must be supported with original copy of import statement, invoice and transport documents.

Charge of Anti – Dumping Duty

As per Customs Duties (Dumping and Subsidies) Act, 1969, the articles and directives defines the terms and conditions to be applied to impose an antidumping duty on the imported or exported materials in their segmented slab:

  1. The source of Trade
    1. First it is verified about the main source of the goods either exported from or imported to, into the United Kingdom, mentioning all the conditions whether in which the provision of this Act should be regarded or not for dumping,
    2. Whether the goods would be in domestic concern. All this is inspected to diagnose the necessity of dumping, however taking the subjective restrictions into consideration regarding with the accord countries.
  2. The imported goods may be considered as having been dumped as per the Act if:
    1. The export price from the origin country is valued lesser than that of the price in domestic market.
    2. It is applicable in every condition, no matters the exchange is within the same or different countries
  3. The power which the Board of Trade may proceed to execute the ADD on the goods, with the specific description about the trade in order to charge the duty. It is must to ensure the chargeability of the goods in the importation into the United Kingdom at the specified rate as mentioned in the order, but the order made to process of the power;
    1. Shall include in the materials describing the goods either framed as in the country of origin or the country of exportation;
    2. Shall not enforce a levy on the goods if the commodity is from the accord country whether being a country of origin or a country of exportation.
  4. The dumping could be effected either if:
    1. The established trade industry of United Kingdom if being forced or impend to the material damage, or the launch of the production house is been falsely demolished;
    2. False statements or practices about the damaged materials to a recognized business in another member country which is the main producer of alike materials imported into the United Kingdom.
  5. The order made in the exercise of the authority may also include the precise and detailed description about the goods, whether chargeable with tax or not as may appeared on the Board of Trade, required to process the dumping act. This includes the requirements restricting the materials description adjoining with a reference of any person specific or organization, with which the goods are concerned in any definite manner.

Liabilities of Goods to Anti – Dumping Duties

Since Anti – Dumping Duty (ADD) is an additional duty precisely levied on the goods from outside the European Union that are focus to protect the EU trade, hence it is too necessary to understand the basic requirements and condition at which the goods lies in the antidumping tax slab or could even exempt. Goods imported from outside EU may be matter to import levy as per the material category and the origin country as prescribed, however HMRC is liable to verify, investigate and collect the duty charge. As per HMRC directives the goods are categorized into taxable and non-taxable items, still needs to be verified by the traders before proceeding.

Imports of such types of goods could be subject to some additional custom duties with respect to the particular countries:

  1. If the goods are being dumped within the EU at the lesser price as compared to the normal commercial value then ADD could be charged on such items.
  2. If the European Commission has a doubt on forced dumping of the goods then a provisional duty may also levied on the traders during the investigation process.

However the UK is trying to reedy Europe’s anti-dumping regulations so as to comfort traders to develop the advanced industrial culture and also assuring the business partners finds imperil to their own steel, aluminum or heavy metal industries.

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