Anti-Dumping and Countervailing Duties
Antidumping and countervailing duties are determined against imports of a product/product group and imposed based on individual exporter companies located in the country subject to investigation. Antidumping duties could be regarded as measures taken against companies/countries, which increase own market share in a foreign country by sales made below (exporter's) domestic market prices. Countervailing duty (CVD) investigations are carried out against companies which benefit from actionable subsidies provided by foreign governments to exporting industries.
We have wide experience on anti-dumping (AD) investigations both as case handlers and as defense experts for our clients. Some of the investigations conducted as case handler were Polyester Synthetic Staple Fibers, Self Drilling Screws, Low Density Polyethylene, Caustic Soda. Our recent AD experience includes Stainless Steel from Taiwan (investigation terminated without measures), Cast Iron Tubes & Pipes from India and UAE (investigation terminated without measures), Polyester Textured Yarn (existing measures applied). Profi Consulting expert Mr. Yagmur was involved in Seabass and Sea Bream CVD investigation carried out against Turkey by the European Union. This investigation was terminated by the EU without measures.
Exporter companies must participate ("cooperate" in technical terms) antidumping and CVD investigations.
Each cooperating exporter must provide requested information and documents properly and within time limits given in order to survive in the market of the country carrying out an investigation. Otherwise, high AD (or CVD) duties could be calculated, leading to loss of that market.
Our observation is that some exporter companies, against which an investigation is conducted, do not want other exporters to cooperate with investigating authorities, aiming to control or obtain competitive advantage in the target export market. That is because if their competitors get high duties, they will be at an advantage against them.
As opposed to AD and CVD, safeguards need to be applied to all countries and the degree of the measure must be phased out on a yearly basis. Compared to other measures, Turkish government less frequently initiated safeguard investigations. However, our expertise also covers safeguards.
Anti-circumvention investigations are very important for exporters, since punitive extra duties could be applied causing the closure of Turkish market for the exporter. Profi Consulting provides expert defensive and analytical consultancy for foreign exporters which were not involved in circumventing activities.
Turkish authorities have often implemented surveillance measures in recent years. Surveillance measures typically set minimum prices for imported products which constitute basis for calculating the customs duties. Consequently, a surveillance measure for a product increases customs duties to be paid.
However, a surveillance measure is usually applied without sufficient analysis of an industry. Companies should consider having a strong industry analysis made and see if the current practice is properly decided upon. Profi Consulting provides best argumentation, analysis and reporting in this area.
Additional duties are applied in a similar way as surveillance measures and hence no detailed investigation is carried out before taking a decision on the application or the rate of an additional duty.
Companies may also consider defensive analysis and reporting related to additional duties applied on a certain product.
Our Expertise on National Legislation and WTO Agreements
Our expert Mr. Yagmur was involved in the preparation of the national legislation. Technical provisions on dumping and injury (such as calculation methods, injury indicators and their relative role in decision making), duration and order of procedures, role of the Ministry’s administrative hierarchy and the nature of its decision making processes are some of the basic aspects that our expertise covers with regard to national legislation. Turkish legislation governing AD, CVD and safeguards were prepared based on WTO Agreements. Thanks to our past experience on the conduct of investigations and domestic rule making process, we have experience on WTO rules (including jurisprudence based on Appellate Body and Panel decisions) and dispute settlement system.