How to Determine if International Products Are Subject to International Dumping Rules
Provided by HG.org
When determining if a product is subject to dumping rules, the international laws must be taken into account. This means that there may be actions against dumping such as unfairly low prices, certain stipulations that may offset subsidies and possible emergency measures to protect domestic entities.
When a company is engaging in dumping, it has exported outdates fashion items, technology no longer relevant in the year or decade and even items that are banned in the country of origin. While the pricing may be enticing and attractive to customers, this type of tactic is often used by multiple countries to include those in the European nations. Many of these areas around the world have anti-dumping laws or actions taken against companies to prevent further legal complications. However, some products may not be subject to these regulations, and it is important to know when something is included.
Often dumping may occur when the price of a good is much lower than that of the same in the country of origin. This could be a competition tactic, or it could be a defective product that has been shipped overseas. The governments of many locations have enacted actions and laws to prevent these activities so that the domestic entities are protected from unfair sales and advantages through dumping practices. The international conventions in place take these matters into account so that various countries may be safeguarded against dumping, and anti-dumping agreements have been created across the nations to avoid such problems.
Determining Involved Products
Through certain articles and stipulations in international laws and rules for dumping, it may be determined that a product is included. Various countries are permitted to take action against dumping of consumables and other items. This then means that if an object or created product is subject to dumping, the government and similar agencies are who authorize this decision. While there are regulations in place where countries are not permitted to discriminate between the countries that trade and sell products, the anti-dumping laws permit individual nations to take action without violating these terms. Extra tariffs or taxes may be imposed on these products to bring the price closer to those from the country of origin.
Other factors may be used to determine if the product is being dumped through tactics that change the price heavily or only slightly. There are three methods of discovering this. The primary process is based on the pricing of the products form the domestic market of the exporting country. If this is not possible to find, the price charged by the exporting country or company in the other location or a calculation of the combination of costs of production may be used. Other expenses are counted in with these factors. A fair comparison may be found while detailing these methods and revealing if the product is being dumped.
There are various procedures used to determine what products are subject to dumping rules and how to apply investigations. These methods are used when certain conditions are met. The involved parties are given chances to cooperate, provide evidence and show that the item is not being dumped. However, if it has been determined as an item that was dumped, anti-dumping measures are taken to include imposing taxes and other fees to increase the pricing of the products. One exception is if the measures would lead to injury for the company or individual involved. This means that investigations could be short or long procedures depending on the product, person or entity and the country included in the investigation.
If the margin for the dumping has been determined to be significantly small such as an export price of less than two percent, the anti-dumping investigation may be ended immediately. This is also possible if the volume of items being dumped is insignificant such as no more than three percent of the total imports of that specific product into the country. Additionally, these measures may be lifted if the entirety of all imports into the nation exceeds three percent for each import with a total of seven percent of all imports. Certain other factors may be applied, but few other exceptions exist for these matters.
If dumping is considered, it is important to contact a lawyer so that a case may be presented properly. This means evidence, testimony and other times so that the authorities are aware that the item is either within the small margin or just less pricey in the country of origin than in the imported nation.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.