Anti-dumping

Anti-dumping Actions by the EU

Frequently Asked Questions (FAQ)¹

Q.1 Is it a legal requirement for an exporter/producer to engage lawyers to represent it in an anti-dumping investigation?

Anti-dumping is a game of details and it is the details that could produce unfair results. While it is not a legal requirement that an exporter/producer must have legal representatives in an anti-dumping investigation, some exporters/producers have found a lawyer's expertise helpful in preparing answers to questionnaires and in representing their interests during the anti-dumping investigation.

Q.2 In the context of an anti-dumping investigation against products originating in another economy, should a Hong Kong exporter of those products originating in the subject economy complete the questionnaire of the investigation to whom it is addressed?

Yes. Goods exported from Hong Kong may be subject to an anti-dumping investigation if they originate in an economy that is subject to the investigation. In such cases, the importing authorities may need information from Hong Kong exporters in order to accurately compare the export price with the normal value. Such information may include the price at which the product is acquired from the country of origin and the handling/associated charges incurred for trans-shipping the product to the country of importation.

Q.3 What happens if an exporter/producer who is selected to participate in an anti-dumping investigation refuses to co-operate or does not respond to the questionnaire; or is found to have supplied false or misleading information in the returned questionnaire?

Where an interested party to an anti-dumping investigation does not co-operate and refuses to provide the necessary information for the investigation, or has been found to supply false or misleading information, preliminary and final determinations for it may be made by the EU authorities on the basis of the "facts available". This usually is the information contained in the complaint, which is most harmful to the exporter.

The consequence of non-cooperation may lead to the imposition of the highest dumping margin on the party concerned due to unverified dumping margin.

Therefore, while it is not obligatory for any exporter/producer of the product concerned in an anti-dumping investigation to answer the questionnaire or co-operate with the EU authorities, it is generally in their interests to do so.

Q.4 If an exporter/producer of a product from an economy under an anti-dumping investigation is not named in the complaint that led to the investigation, can the exporter/producer be spared from anti-dumping measures?

Anti-dumping duties, once imposed, are applicable on all imports of a product from the economy (or economies) subject to the anti-dumping investigation which are found to be dumped and causing injury. The exporter/producer of the product concerned, whether or not known to the EU authorities during the investigation, will also be subject to the anti-dumping measures. Exports of an unknown exporter will be subject to the "residual" rate.

It is generally in the interest of all exporters/producers, whether or not known to the EU authorities, to co-operate in an anti-dumping investigation. The consequence of non-cooperation may lead to the imposition of the highest dumping margin due to the unverified dumping margin.

Q.5 What can an exporter/producer do in order to be excluded from anti-dumping measures?

An exporter/producer will be facing an uphill battle once an anti-dumping investigation has been initiated. The best defence for it is to participate actively and positively in the investigation.

In the past, some co-operating exporter/producer have been able to secure an anti-dumping duty rate as low as zero.

If an investigation has already been concluded, then an exporter/producer may be able to obtain a more favourable dumping margin through a review. Please refer to the section on "Review" in "The EU's Anti-dumping Proceedings - Brief Outline".

Q.6 Why do some exporters/producers offer to place an undertaking with the Commission?

An undertaking is sometimes preferred by exporters/producers as a better option than AD duties for the following reasons:

• Undertaking: An undertaking obliges the exporter/producer to sell to EU customers at a minimum price level (or "floor price"). The importer does not need to pay anti-dumping duties. Exporters/producers often have to raise their prices in order to meet the "floor price". In doing so, the exporter/producer receives increased revenue on each unit sold.
• AD duties: Where AD duties are imposed, the importer of the goods has to pay AD duties. This effectively increases the cost (price) of the goods in the EU market. However, the exporter/producer does not receive any increased revenue.

Note:

1. While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same. Please refer to the EU's Basic Anti-dumping Regulation: Regulation (EU) 2016/1036 (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02016R1036-20200811&from=EN) or seek legal advice for clarification of the EU's anti-dumping proceedings whenever necessary.