A company is dumping if it is exporting a product to the EU at prices lower than the normal value of the product (the domestic prices of the product or the cost of production) on its own domestic market.
Anti-dumping in a nutshell
- The European Commission is responsible for investigating allegations of dumping by exporting producers in non-EU countries.
- It usually opens an investigation after receiving a complaint from the Community producers of the product concerned, but it can also do so on its own initiative.
The anti-dumping process
The maximum time limit for an investigation under these proceedings is 15 months.
The detailed findings are published in the Official Journal, for example, as a regulation imposing anti-dumping duties or terminating the proceeding without duties being imposed.
EU anti-dumping policy
The EU investigates anti-dumping claims. Specifically, the investigation must show that:
- there is dumping by the exporting producers in the country/countries concerned
- material injury has been suffered by the Community industry concerned
- there is a causal link between the dumping and injury found
- the imposition of measures is not against the Community interest.
For more information on conditions for imposing an anti-dumping measure, see Conditions
If the investigation finds that the conditions have been met, then anti-dumping measures can be imposed on imports of the product concerned. These measures usually take the form of an ad valorem duty, but could also be specific duties or price undertakings. The duties are paid by the importer in the EU and collected by the national customs authorities of the EU countries concerned.
Exporting producers may offer "undertakings" – agreeing to sell at a minimum price, for example. If their offer is accepted, anti-dumping duties will not be collected on imports. The Commission is not obliged to accept an offer of an undertaking.
A duty may be imposed to remove the effects of dumping on imports of a particular product. An assessment is also made of the level of duty needed to remove the injurious effects of dumping. Measures will be imposed at the level of dumping or injury whichever is the lower.
Measures are generally imposed for 5 years and may be subject to review if, for example:
- the circumstances of the exporters have changed
- importers request a full or partial refund of duties paid
- new exporting producers request an accelerated review.
Measures will lapse after 5 years unless an expiry review is initiated.
The Commission monitors measures to ensure they are effective and respected by exporters and importers.
The way forward on anti-dumping
An anti-dumping investigation can be initiated in response to a complaint lodged by European manufacturers affected by dumped imports or at the request of an EU country.
Community producers who are considering lodging an anti-dumping complaint, should contact us.