March 20, 2015 | Industry Insights
Anti-Dumping Penalties Dig into Revenue
When exporters undercut pricing on their goods to gain share in the marketplace, they put importers’ revenue in jeopardy. Anti-dumping laws in many countries around the world are enforced with harsh penalties, and importers have a major responsibility to ensure it isn’t happening.
Currently there are multiple uproars over exporters that are using unfair pricing tactics to increase the attractiveness of their products. For example, in February Felman Production filed an anti-dumping petition with the U.S. Department of Commerce and the International Trade Commission accusing an Australian metallurgical company of sending large and increasing volumes of low-priced siliconmanganese to the U.S., dropping its prices sharply in recent years. Preliminary anti-dumping duties could be assessed against Australian imports within six months, and anti-dumping orders are already in place against several other exporters of the product.
But Australia isn’t just on the exporting end of such controversies. Its anti-dumping commission is running an accelerated review applicable to aluminum road wheels from China that are undercutting the Australian ARW industry. Such cases span industries and nations and can lead to long-tail, sometimes devastating, financial obligations for importers.
Add to that the fact that importers, at least in the U.S., must certify that they will not receive any reimbursement for penalties they incur due to anti-dumping duties. If importers don’t file such certifications in a timely manner, they face double duties as punishment.
Since there aren’t insurance or other contractual means to protect against anti-dumping duties, importers are urged to know their markets well and maintain fair pricing and clear records. Complaints of anti-dumping may come long after the product has been sold, and determination of final duties, which can far exceed the paid estimated duty amount, takes more than three years on average, according to the Government Accountability Office.
In the course of buying your customs bonds, it is important to discuss your exposure to anti-dumping duties. At Roanoke Trade, we keep abreast of problems the export-import industry faces and can help you ascertain hazards you might face. Facilitating dumping can be a business-destroying action, even if you have done it unwittingly. Knowing the parties you are dealing with and researching fair-market prices will give you a leg up.
We invite you to learn more about us, our experienced talent in this highly specialized area, our creative solutions, and the value we will bring to you and your clients. Please contact us at 1-800-ROANOKE (800-762-6653).