Anti-Dumping Duty

Anti-dump duties are regulations designed to prevent unfair trade practices, specifically the sale of imported goods at prices significantly lower than their normal value, often below the cost of production. Dumping occurs when foreign manufacturers export goods to another country at prices that are lower than those in their domestic market.

How a Tariff Classification Audit Ties into Anti-Dumping:

A tariff classification audit involves reviewing the correct classification of imported goods under the Harmonized System (HS). Each product has a specific HS code, which determines the duties and taxes applied, including any anti-dumping duties.

Tariff classification audits assist in identifying goods that attract anti-dumping duties, which enable those targeted products entering Canada to be assessed accurate duty rates at the time of accounting and avoiding costly penalties.

Penalties and Measures:

Anti-Dumping Duties (AD Duties):

• Common forms of penalty, these duties are tariffs that are added to the price of the dumped products. The rate can vary based on the margin of dumping, which is the difference between the product's normal value in the exporting country and its export price. The duties can be significant, sometimes as high as 100% or more of the product's value.

Retrospective Penalties:

• Some countries (e.g., the U.S.) have a system of retrospective assessment, meaning that duties are imposed after a review of actual import prices over a certain period (typically a year). If the review finds that dumping occurred, importers may face additional duties retroactively.

Administrative Monetary Penalties:

• Importers who fail to comply with anti-dumping regulations (e.g., underreporting or misclassifying goods) can face fines, suspension of import licenses, or restrictions on future imports.
• C004 and C223 https://www.cbsa-asfc.gc.ca/trade-commerce/amps/mpd-dmi-eng.html

Injunctive Relief:

• Governments or domestic producers can also seek injunctive relief to stop the continued importation of dumped products during an investigation.

Enforcement:

Anti-dumping penalties are typically enforced by customs agencies in coordination with trade and commerce departments, such as the U.S. International Trade Commission (USITC), the European Commission, or the Canada Border Services Agency (CBSA)

The specific penalties depend on each country’s anti-dumping laws and the results of an investigation conducted into the alleged dumping.

Why choose Frontier:

Frontier has a customs and trade consulting practice, that can help your company save money on anti-dumping by offering expertise and services that navigate the complexities of trade regulations and duties. A few ways in which we can assist:

• Compliance and Audits: By ensuring that your imports comply with international and domestic regulations, we help you avoid costly penalties, fines, and overpayment of duties.
• Tariff Classification: We can ensure your goods are accurately classified under customs regulations, which can affect whether anti-dumping duties apply and at what rates.

By leveraging our expertise, Frontier can guide your company through anti-dumping laws and help minimize associated costs while maintaining compliance with trade regulations.

Contact Frontier today to learn more about this opportunity: Click here to contact Frontier