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Antidumping

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EU trade defence

Antidumping investigations

Anti-subsidy

Anti-subsidy investigations

What is dumping?

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.

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.

What is an anti-dumping proceeding?

After receiving a complaint from the EU producers of the product concerned, the Commission publishes a notice in the EU's Official Journal opening an anti-dumping proceeding. 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.

See also: Flowchart of the anti-dumping investigation process

Under what circumstances can anti-dumping measures be imposed?

The investigation must show that:

  1. there is dumping by the exporting producers in the country/countries concerned
  2. material injury has been suffered by the EU industry concerned
  3. there is a causal link between the dumping and injury found
  4. the imposition of measures is not against the EU interest.

For detailed information on conditions for imposing an anti-dumping measure, see Conditions

What is an anti-dumping duty?

If the investigation finds that the above four 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.

What is the 'lesser duty rule'?

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.

Protection against injurious pricing of ships

EU rules include a regulation on the sale of newly built ships at excessively low prices.See Shipbuilding for further details.

What law is applied here?

The EU's basic anti-dumping Regulation complies with the EU's international obligations – in particular the WTO Anti-Dumping Agreement.

How to proceed?

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 the European Commission.

Duration of measures and reviews

Measures are generally imposed for 5 years and may be subject to review if, for example:

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.

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