Anti-dumping Duties (AD)
Anti-dumping duties is a type of product duties assessed by U.S. Customs.
What are anti-dumping duties?
Anti-dumping duties are assessed to mitigate the impact of dumping, which is when foreign manufacturers sell products in the United States at a lower cost than their fair value.
Anti-dumping duties are priced to make up for the gap between foreign manufacturer pricing and fair market value.
If applicable, anti-dumping duties may be anywhere from 0% to 550% of the commercial invoice value.
Will anti-dumping duties apply to my product?
This depends on the country of origin and the type of product.
The U.S. International Trade Commission and the U.S. Department of Commerce oversee anti-dumping duties. For an official list of products affected, visit the International Trade Administration's website.
Manufacturers or companies can file petitions to these two bodies if they find a foreign manufacturer selling under fair market value or a foreign government subsidizing manufacturers. The USITC and DOC will review the petition and conduct investigations to determine its validity. They will then instruct U.S. Customs to assess duties accordingly.
An Anti-dumping duty is one of the trade defence instruments used by the EU to protect its internal market. Dumping is when a company exports a product to a destination market at a price lower than the normal value in its home market. This normal value could be the domestic price of the product, or the cost of production and profit. Anti-dumping investigations (laid out in GATT Article VI) may result in additional duties imposed on imported goods in order to compensate for the difference between their export price and their normal value.
For the UK specifically:
An Anti-dumping duty is an import duty charged in addition to normal Customs Duty and applies across the UK. It allows the UK to take action against goods sold at less than their normal value, defined as the price for ‘like goods’ sold in the exporter’s home market. The National Archive website has details of anti-dumping duty measures.