Anti-Dumping Duty: What It Is, How to Check in TARIC and How It Works in the UK

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What is anti-dumping duty?

Dumping occurs when goods are exported to the EU at a price lower than their “normal value” in the exporting country. If this causes injury to Union industry, the Union may impose anti-dumping duty, which offsets the difference. The legal framework is set by Regulation (EU) 2016/1036 on protection against dumped imports from countries not members of the European Union.

The measure is imposed by a Commission implementing regulation, on strictly defined goods and countries of origin. A definitive measure expires as a rule after 5 years, unless an expiry review shows that it needs to be maintained (Article 11(2) of Regulation 2016/1036). Anti-dumping duty is paid in addition to ordinary duty and VAT – we write about how they relate in the article duty vs VAT.

How to check in TARIC whether goods are subject to anti-dumping duty

TARIC is the EU’s integrated tariff, where you will find duty rates and trade remedies measures. The checking procedure:

1. establish the commodity code (CN or 10-digit TARIC) – our article on finding CN codes will help,
2. select the country of origin (not the country of dispatch!),
3. open the measures tab for that code and country,
4. look for entries described as anti-dumping duty; pay attention to additional TARIC codes assigned to producers,
5. keep a screenshot or the regulation number – it will be useful in the event of an inspection.

Remember that whether a measure applies is determined by the country of origin of the goods within the meaning of the non-preferential origin rules. Goods produced in a country covered by the measure but shipped via a third country are still covered. That is why it is worth ensuring that supplier documents clearly state the producer and the country of manufacture. We discuss the question of how up to date TARIC data is in the guide does TARIC show current duties.

Can paid anti-dumping duty be recovered?

In the Union Customs Code, repayment and remission of import duty are governed by Articles 116–121 UCC. In practice, applications rely on several grounds:

• overpayment – the charge was paid in an amount higher than due (among others Article 117 UCC),
• defective goods or goods not in accordance with the contract – rejected by the importer and not used (Article 118 UCC),
• error by the customs authority – where, as a result of the authority’s error, the amount originally notified was lower than the amount due, and the debtor acted in good faith and could not reasonably have detected the error; this ground protects against payment of the difference (Article 119 UCC),
• equity – in special circumstances, where no deception or obvious negligence can be attributed to the debtor (Article 120 UCC).

The application is submitted within 3 years of the date of notification of the customs debt (overpayment, authority error, equity) or within one year (defective goods) – Article 121(1) UCC; repayment or remission takes place where the amount is at least EUR 10 (Article 116(2)). Independently of the UCC, an importer may apply for a refund of anti-dumping duty if it demonstrates that the dumping margin on the basis of which the duty was paid has been eliminated or reduced below the applicable rate – the application is addressed to the Commission through the Member State in which the goods were released for free circulation, within 6 months of the date on which the amount of duty was determined (Article 11(8) of Regulation 2016/1036). The mere fact that an anti-dumping measure was later amended or repealed does not automatically mean a right to a refund – the provisions of the specific regulation and the grounds in the UCC are decisive.

How anti-dumping duty works in the United Kingdom

Since Brexit the United Kingdom has applied its own system of trade remedies. It is run by the Trade Remedies Authority (TRA), an independent body investigating dumping, subsidies and surges in imports; the decision to impose a measure on the basis of a TRA recommendation is taken by the government. Many measures in force in the UK are measures inherited from the EU, which the TRA subjects to reviews – as a result some of them have been amended, extended or have expired. Cases handled by the TRA are publicly available on trade-remedies.service.gov.uk.

You can check duty rates and any measures in the UK Trade Tariff (gov.uk/trade-tariff) by entering the commodity code and country of origin. EU and UK measures are independent: goods exempt from anti-dumping duty in the EU may be subject to it in the UK and vice versa. So where goods move on both sides of the Channel, check both tariffs.

What to pay attention to in practice

• verify the country of origin and the producer before placing an order, because the duty can change the margin calculation,
• take the measure into account in your cost calculation and VAT budget – anti-dumping duty is not included in the customs value (Article 72(f) UCC), but it increases the VAT base on import (Article 86(1)(a) of Directive 2006/112/EC) (see how to calculate customs value),
• track the review deadlines for measures on your key commodity codes,
• keep origin documentation for the whole period during which the authority may carry out an inspection.

How anti-dumping duty differs from ordinary duty and countervailing measures

Ordinary import duty follows from the tariff and applies to most non-EU goods, regardless of export prices. Anti-dumping duty appears only where an investigation has found dumping and resulting injury to Union industry. Countervailing (anti-subsidy) measures are a separate category, applied to goods whose production or export was subsidised by a third country. In TARIC both types of measure appear among trade remedies measures, so it is worth reading the description of each entry rather than just looking for the rate.

Which documents are needed when goods are subject to a measure

In many anti-dumping regulations the rate depends on the producer, and applying a lower rate requires additional documents to be presented, e.g. a commercial invoice containing a specified statement. If you do not present them, the residual rate applies, usually the highest. That is why, before ordering goods, ask the supplier for documents confirming the producer and check in the text of the regulation what evidence the customs authority requires. A missing document at the time of the declaration can be hard to put right after the event.

What are the consequences of omitting anti-dumping duty from a declaration

Underpayment of charges through failure to state the measure or through the wrong country of origin results, after an inspection, in payment of the duty together with interest and, where intentional action is suspected, also criminal fiscal liability. Anti-dumping measures are inspected particularly often, because imports of goods from countries covered by measures are sometimes an attempt to circumvent them by changing the country of dispatch. If after clearance it turns out that a mistake was made, it is better to submit an amendment to the declaration than to wait for an inspection.

How to plan purchases when a measure may change

Anti-dumping measures are not permanent: they expire after a set time unless extended following an expiry review, and while in force they may be amended as a result of interim reviews. For a business importing regularly from one country this means that cost calculations should allow for the possibility of a rate change. For long-term contracts it is worth stating in the agreement with the supplier who bears the risk of a change in duty, and monitoring notices in the Official Journal of the EU and in TARIC. The same applies to the UK, where TRA decisions are published on the public cases service.

Does anti-dumping duty also apply to goods from the UK?

After Brexit the United Kingdom is a third country, so goods manufactured in the UK could in theory be subject to EU measures, but in practice measures concern mainly specified countries, usually outside Europe. Whether goods are covered is determined by the country of origin, not by the fact that the goods travelled through the UK. When you bring into the EU goods manufactured in Asia and stored in a UK warehouse, check the producer’s origin in TARIC, not the country of dispatch. A mistake on this point is one of the most common causes of additional payments after inspection. The same goods brought into the UK are assessed separately under the UK tariff and TRA decisions. In both cases origin documents from the supplier are key, especially where the goods were transhipped or stored on the way. Keep them together with the declaration so that, in the event of an inspection, you can show where the goods really come from and why a given rate was applied.

Sources

• Regulation (EU) 2016/1036 – protection against dumping (EUR-Lex)
• Regulation (EU) No 952/2013 – Articles 116–121 (EUR-Lex)
• Trade Remedies Authority – gov.uk
• UK Trade Tariff – gov.uk
• Customs – National Revenue Administration (podatki.gov.pl)

Want to check whether a planned import is subject to trade remedies measures? Contact us – a customs agency registered with CDS, UK EORI number.

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