Anti-Dumping Duty

Anti-Dumping Duty is an additional tariff imposed by the government of an importing country on goods exported to that country at a price below their normal value (typically the domestic market price in the exporting country or the price in a third country). Its purpose is to offset the harm caused by dumping to the domestic industry of the importing country and to protect fair competition. Use cases: Anti-dumping duties may be imposed when the investigating authority of the importing country (such as the U.S. Department of Commerce or the European Commission) determines that a product is being dumped and has caused material injury to the domestic industry. Precautions: Anti-dumping duties are usually imposed based on the dumping margin, which may amount to several times the value of the goods, and are subject to periodic reviews (such as sunset reviews). The difference from Countervailing Duty is that anti-dumping targets low-price dumping by enterprises, while countervailing targets subsidies provided by the exporting country's government. The difference from Safeguard measures is that safeguard measures target fair trade but surging imports and do not require the existence of unfair practices. Foreign trade practitioners need to pay attention to the response deadlines in anti-dumping investigations and changes in duty rates to avoid high costs.