Anti-dumping duties on China: how to know if you are affected

An anti-dumping duty penalises a product sold for export at a price below its normal value on its home market, when this practice causes injury to equivalent production in the European Union. A countervailing duty targets a government subsidy that distorts competition, paid in the country of origin to its exporting producers.

Both measures fall under the same EU legal framework, Regulation (EU) 2016/1036 for anti-dumping and Regulation (EU) 2016/1037 for subsidies. They add on top of normal customs duties, on the same products, and only cover certain precisely listed customs codes, not an entire country or a whole sector.

For imports into the European Union, TARIC helps identify measures associated with a tariff classification. The legal text determines their exact scope: it may exclude some goods under the same code. Outside the EU, consult notices published by the competent authority in the importing customs territory.

An anti-dumping measure results from an investigation carried out by the European Commission, generally opened at the request of European producers who consider themselves harmed. The investigation compares the export price to the Union with the product's normal value, then assesses the injury caused to the equivalent European industry.

If the investigation finds injurious dumping, a provisional duty can apply during the proceedings, followed by a definitive duty published in the Official Journal of the European Union, generally valid for several years, with a possible review before it expires. The duty rate often varies from one Chinese producer to another, depending on their cooperation with the investigation.

An EU review may maintain, change or end a measure. A producer that starts exporting later may be able to request a review of its own case, subject to the applicable conditions. For a new order, consult the decision in force rather than carrying forward the rate recorded for the previous shipment.

In the World Trade Organization (WTO) portal, start with the member importing the goods. Search for the product and the exporting country or territory under investigation. Record the manufacturing country, the seller’s country and the country of shipment separately. The departure port alone cannot establish customs origin.

Consult the investigation tables separately from the tables of measures in force. The portal compiles members’ semi-annual notifications on anti-dumping and countervailing measures. They may be incomplete. An empty result calls for a local check. For safeguards, use the WTO’s separate safeguards resource, then read the competent authority’s decision.

Find the official notice and any amendments published by the authority responsible for the destination market. Record the case number, product definition, exclusions, producers covered and effective dates. Distinguish an investigation from a provisional measure, a definitive duty or an expired measure. A tariff code helps locate notices. Read the product description when several goods share a code.

Keep a dated record for each purchase: model, producer, composition, origin, destination, expected customs clearance date and link to the applicable decision. Record the confirmed rate or the question for the customs declarant. If the product, producer or timing changes, check again before approving the quotation.

An anti-dumping duty is added to ordinary duties under the terms of the measure. Some decisions set a percentage; others specify an amount per unit. Before comparing quotations, confirm the basis of calculation and any conditions specific to the producer.

The exact name of the manufacturer, as shown on Chinese export documents, determines the applicable rate when the measure distinguishes between producers. An invoice showing a manufacturer different from the one that actually made the goods risks reclassification and a duty claim if checked.

An anti-dumping duty already paid can, in some cases, be refunded later if the measure is annulled by a European court or if a review leads to its retroactive removal. This process remains lengthy and requires keeping all customs documents for the operation concerned.

Before signing with a new factory in a sector already under measures, checking anti-dumping exposure is part of normal due diligence, alongside checking the business licence or production capacity. Skipping this step means discovering the product's real cost after the goods have shipped, when renegotiating is no longer possible.

Some anti-dumping measures have been extended to third countries after an anti-circumvention investigation, when the Commission found that a targeted Chinese product was passing through minimal assembly in another country to escape the duty. Checking the real origin, not just the declared one, therefore remains useful even outside China.

Buying through another trading company while retaining the same producer does not establish a new duty rate. Ask who makes the item, where it was processed and which documents will accompany it. Give the customs declarant updated documentation whenever the composition or route changes.

Sorva, a sourcing and brokerage house, checks a product's exposure to anti-dumping and countervailing measures from the feasibility study stage, before any order is committed, based on the customs code and manufacturer identified by our Chinese-speaking team in Guangzhou.

As part of the agreed assignment, we ask the manufacturer for documents identifying the model, production site and materials. You can have your customs declarant review the file before placing the order. We follow up on any outstanding technical questions with the supplier.