Anti-Dumping | What Is It And How Does It Affect Importers?
As an importer of foreign goods coming into the commerce of the United States, you already know how complicated the import formalities can be, and there is always more to learn. One subject that may not have appeared on your radar is that of Antidumping (AD).
What Is Anti-Dumping (AD)?
The International Trade Administration (ITA) defines dumping as: "Dumping occurs when a foreign producer sells a product in the United States at a price that is below that producer's sales price in the country of origin, or at a price that is lower than the cost of production."
Further, "If a U.S. industry believes that it is being injured by unfair competition through dumping or subsidization of a foreign product, it may request the imposition of anti-dumping or countervailing duties by filing a petition with both Import Administration and the United States International Trade Commission. Import Administration investigates foreign producers and governments to determine whether dumping or subsidization has occurred and calculates the amount of dumping or subsidies."
According to the United States International Trade Administration, there are currently Anti-dumping cases for 44 of our trading partner countries, including countries as diverse as Argentina, Canada, Italy, China and Ukraine. There are more active AD cases for goods manufactured in China than from any other country.
Products affected range from ironing boards to wooden bedroom furniture to ball bearings to solar panels and cells, from apple juice to salmon, from shrimp to pasta to mushrooms. New cases are initiated frequently, while other cases are terminated. AD rates can range from less than 1% to over 250% of the import value of the goods. With all anti-dumping cases, there are additional formalities and documentation that is required to be presented with the customs entry, no matter the AD rate.
The surety that provides the bond for your importation may require detailed financial information and collateral in order to agree to underwriting a bond. Customs will require that the entry include documentation certifying that you, the importer, are not being reimbursed by the manufacturer for the cost of the anti-dumping duties. You may well imagine that being unaware of a potential AD case on your product, discovering that your goods are subject to an unplanned additional duty can come as quite a shock.
Because AD cases are assigned based on information provided by the manufacturer to the ITA, and different firms may receive either higher or lower AD rates, it is important that you provide the full legal name and address of the actual manufacturer and the exporter, in order to assure that the correct AD case is associated with your entry.
Are You Subject To A U.S. Customs Audit?
Recommendations For Importers Of New Products:
Pacific Customs Brokers recommends that you contact your customs broker or attorney prior to making purchasing decisions for goods that are new to your firm. We can assist you with research on the dutiability of the product and advise on eligibility for reduced or duty free treatments, in addition to determining whether it may be subject to Anti-dumping.