What are Trade Defence Instruments
There are three Trade Defence Instruments, the anti-dumping instrument, the anti-subsidy instrument and the safeguard instrument. The anti-dumping instrument is by far the most frequently used (90%), followed by the anti-subsidy instrument.
The purpose of trade defence instruments is to eliminate trade distortions in international trade caused by dumping or subsidisation. [1]This is done in the form of anti-dumping duties or anti subsidy duties which are imposed at the border of the EU and are treated in the same way as ordinary customs duties. The purpose of these duties, which are imposed for 5 years and can be renewed, is to eliminate the injurious effects of the dumping or subsidisation.
For duties to be imposed, you first of all need to file a complaint with the European Commission and to show that you have a prima facie case which would justify the opening of an investigation by the Commission. As an individual producer, you cannot do this on your own. You need to have the support of a legally prescribed proportion of total EU production to have sufficient standing to have your complaint accepted.
It is important that your complaint is sufficiently substantiated to meet the high standards applied by the Commission. If your complaint is accepted, the Commission will open an investigation. The investigation is carried out by the Trade Defence department of the Directorate General for Trade which will conduct on-the-spot investigations at participating companies to verify the allegations made in the complaint. If the investigation shows that there is dumping or subsidization by your third country competitors which causes damage to your industry then additional Anti-Dumping duties, over and above the normal Customs Duties, will be imposed at the border for a period of 5 years.
On average the Commission has between 30 and 50 active investigations on-going at any time.
There are currently some 125 EU anti-dumping and anti-subsidy measures in force.
If you are concerned about retaliation by companies or countries we can advise you how best to avoid being targeted.
