#anti dumping

This article explores the scope and implications of anti dumping investigations in Turkey, emphasizing the importance of consulting services for importers. It aims to provide a comprehensive understanding of the legal framework and procedures involved in such investigations.

What is Dumping?

Dumping occurs when the export price of a product is lower than its market price in the exporting country. In foreign trade, dumping refers to the sale or import of a product at less than its fair value, as defined by the World Trade Organization (WTO).

Types of Dumping

There are four primary types of dumping:

Sporadic Dumping

Predatory Dumping

Reverse Dumping

Persistent Dumping

What is Anti-Dumping?

Anti-dumping measures are actions taken by domestic authorities to prevent the import of goods at unfairly low prices. These measures protect domestic producers from unfair competition and import-related risks.

Primary Legislation for Anti-Dumping Investigations in Turkey

The Law on the Prevention of Unfair Competition of Imports (Law No. 3577) is the cornerstone of anti-dumping practices in Turkey. This law defines dumping and sets the rules for addressing unfair competition in imports. Turkey is also a party to international agreements such as the General Agreement on Tariffs and Trade (GATT) and the WTO Anti-Dumping Agreement.

Initiating Anti-Dumping Investigations in Turkey

Investigations can be initiated by the General Directorate of Imports under the Ministry of Trade, either upon a complaint or ex officio. A complaint can be lodged by local manufacturers or legal entities representing domestic production branches.

Investigation Procedure

Upon detecting sufficient evidence of dumping, an investigation is initiated and announced in the Official Gazette. Importers and exporters involved are required to respond to inquiry questionnaires. The investigation must be concluded within one year, except in special circumstances, with the final decision also announced in the Official Gazette.

Conditions for Taking Anti-Dumping Measures 

Three conditions must be met to impose anti-dumping measures:

Evidence of dumping

Material damage or threat to domestic production

Causal link between the damage/threat and the dumped imports

Main Anti-Dumping Duties in Turkey

 The three main anti-dumping measures include:

Price undertakings (Article 11)

Preliminary measures (Article 12)

Definitive measures (Article 13)

Importance of Anti-Dumping Consulting Services

Anti-dumping consulting services are crucial for navigating the complexities of investigation procedures, ensuring accurate responses to inquiry questionnaires, and adhering to strict timelines. Consulting services help avoid litigation costs and ensure compliance with legal requirements.

Conclusion

What does “dumping” mean in trade?

Generally speaking, “dumping” refers to a situation in which the export price of a goods is lower than market price of the same goods in the exporting country. Nonetheless, even the definition of dumping presents significant challenges for even legal practitioners including anti dumping lawyers.

Regarding an embracing analysis of current customs regime, see our articles on

Customs Clearances in Turkey

Export Customs Regime in Turkey

What does dumping mean in foreign trade?

International community produces different types of definitions for the word dumping. It is particularly significant to consider what is meant by dumping. According to the World Trade Organization, dumping is the sale or import of a particular product at less than fair value. Technically, this comparison will be made between the export price of a goods and the “normal value” of the equivalent goods in the exporting country. If the export price is lower than the local market price, that product can be considered “dumped”.

With regard to the useful observations about import customs regime of Turkey take a look at our article on Import Customs Regime in Turkey

Which legal conditions are necessary for initiation of Anti Dumping Investigation?

There are three main pre-conditions to initiate anti dumping procedures according to the Turkish legal framework.

The importation of the relevant product must be a typical example of dumping,

Dumping should cause material damage / or threat of harm on domestic production,

Causal link is necessary between this damage or threat and  dumped imports.

For our work and all legal services on the matter of anti-dumping, please click our “Practice Areas”, titled, Anti Dumping

What are the main legal Instruments applicable to 2024 anti dumping measure in Turkey?

The Law on the Prevention of Unfair Competition of Imports (No: 3577) is the central to the anti-dumping actions and practice. In the Law in question, dumping is defined as ‘export price of a product to Turkey being less than the normal value for the like product’. The Law identifies the rules and principles as regards the procedures to be applied and measures to be taken for purposes of protecting a domestic industry against injury caused by unfair competition practices in imports namely, dumped or subsidized imports.

The Decision on the Prevention of Unfair Competition of Imports and the Regulation on the Prevention of Unfair Competition of Imports are also available online here.

Anti dumping laws should be carefully analyzed in the case of anti dumping investigations first. You may benefit from our updated article on Anti Dumping Investigations in Turkey.

What is the News on 2024 anti dumping measure against Germany and Sweden?

In accordance with Article 3, measures shall be taken in cases where dumped or subsidized imports have caused material injury or threatened to cause material damage to the domestic industry.

The decision is based on the grounds that the harmful risks against domestic production are still going on.

Conclusion

Introduction

A recent decision on 2024 anti dumping measure against North Macedonia has been taken by the Ministry of Trade. That measure may have a direct impact upon leading companies originating from North Macedonia.

What does “dumping” mean in trade?

Regarding a end-to-end analysis of export customs regime, see our articles on 

Customs Clearances in Turkey

Export Customs Regime in Turkey

What does dumping mean in foreign trade?

International authorities provide a milestone in identifying a global definition of dumping. It is particularly significant to understand that according to the World Trade Organization, dumping is the sale or import of a particular product at less than fair value. Technically, this comparison will be made between the export price of a goods and the “normal value” of the equivalent goods in the exporting country. If the export price is lower than the local market price, that product can be considered “dumped”.

With regard to the useful observations about import customs regime of Turkey take a look at our article on Import Customs Regime in Turkey

Which legal conditions are necessary for initiation anti dumping measure?

After investigating, if the below-mentioned conditions are found, serious measures may be taken by national authorities particularly Ministry of Trade:  

The importation of the relevant product must be a typical example of dumping,

Dumping should cause material damage / or threat of harm on domestic production,

Causal link is necessary between this damage or threat and  dumped imports.

Therefore, anti-dumping implies actions and practices implemented by relevant domestic authorities to prevent dumping. Anti-dumping investigations may be carried out by the competent Turkish authorities with the intention of the protection of local manufacturers. 

For our work and all legal services on the matter of anti-dumping, please click our “Practice Areas”, titled, Anti Dumping

What are the main legal instruments applicable to anti dumping measure in Turkey?

The Law on the Prevention of Unfair Competition of Imports (No: 3577) is the central to the anti-dumping actions and practice. In the Law in question, dumping is defined as ‘export price of a product to Turkey being less than the normal value for the like product’. The Law identifies the rules and principles as regards the procedures to be applied and measures to be taken for purposes of protecting a domestic industry against injury caused by unfair competition practices in imports namely, dumped or subsidized imports.

The Decision on the Prevention of Unfair Competition of Imports and the Regulation on the Prevention of Unfair Competition of Imports are also available online here. 

Anti dumping laws should be carefully analyzed in the case of anti dumping investigations first. You may benefit from our updated article on Anti Dumping Investigations in Turkey.

What is the news on 2024 anti dumping measure against North Macedonia? 

In accordance with Article 3, measures shall be taken in cases where dumped or subsidized imports have caused material injury or threatened to cause material damage to the domestic industry. 

A new decision on 2024 anti dumping measure against North Macedonia has been launched by the Turkish government. This procedure has been initiated by a Communiqué on the Prevention of Unfair Competition in Imports published in the Official Gazette on January 19, 2024. An anti-dumping measure of 1.9 dollars per kilogram will be applied to the import of some artificial and synthetic fibers and leather imitations originating from Northern Macedonia.

The decision is based on the grounds that companies located in the Republic of North Macedonia could not provide a sufficient justification during the investigation procedure. 

Conclusion

In the final analysis, a critical decision on 2024 anti dumping measure against North Macedonia is first focus of this paper. Without benefiting an embracing anti dumping consulting service, it is quite challenging to handle investigation procedures and follow-up anti dumping measures in Turkey. What is really important is that there are specific timelines and deadlines for every single legal step. Submission of defense arguments about anti dumping investigations is very critical. Besides, involved companies have a right to lodge a case before administrative courts against anti dumping measures. 

In terms of our work on litigation, see practice areas titled “Dispute Resolution and Litigation”

For more information take a look at our articles

Anti Dumping Investigations in Turkey

Anti Dumping Investigation against Russian-based Import

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Antidumping Duties on API Pipes From South Korea and Turkey

WASHINGTON, Oct. 23, 2014 /PRNewswire-USNewswire/ — The United Steelworkers (USW) union has joined a petition calling on the U.S. Commerce Department (DOC) and International Trade Commission (ITC) to impose antidumping and countervailing duties on welded API line pipe imports from South Korea and Turkey.

The union, along with steelmakers American Cast Iron Pipe Co., Energex, Maverick Tube Corp., Northwest Pipe Co., Stupp Corp., Tex-Tube Co., TMK IPSCO and Welspun Tubular LLC USA, is calling for duties on carbon and alloy welded API line pipe up to 24 inches in diameter, a product often used in oil and natural gas pipelines. Imports of such products from the two countries were valued at $708 million in 2012 and $601 million in 2013.

“These countries are exploiting the growing oil and gas drilling industry in the United States to try to tilt the playing field in their direction,” said USW International President Leo W. Gerard. “They are attempting to squeeze American companies out of this growing market by unfairly subsidizing their own steel producers and by forcing their products onto our shores at below-market prices.”

“These illegal trade practices have the potential to cause significant harm to American manufacturers, kill good-paying American jobs and inflict serious damage on our economy,” Gerard said. “American workers and American steelmakers deserve to compete on a level playing field, and when our trade partners break the rules like this, we expect the ITC and the DOC to do what it takes to make sure that they play by the rules.”

The ITC is expected to issue a preliminary determination by December 1, while preliminary decisions from the DOC are likely by next spring.