Recently, an anti dumping investigation against the importation of hot rolled steel from the Russian Federation, China, India and Japan has been launched by the Turkish government. This procedure has been initiated by a Communiqué on the Prevention of Unfair Competition in Imports published in the Official Gazette. The relevant page of the Gazette is available online here.
What does "dumping" mean in trade?
In general, "dumping" refers to a situation in which the export price of a goods is lower than market price of the same goods in the exporting country. Nevertheless, in practice even the definition of dumping causes several troubles for even legal practitioners including anti dumping lawyers.
What does dumping mean in foreign trade?
International authorities provide a milestone in identifying a global definition of dumping. It is particularly significant to understand that according to the World Trade Organization, dumping is the sale or import of a particular product at less than fair value. Technically, this comparison will be made between the export price of a goods and the "normal value" of the equivalent goods in the exporting country. If the export price is lower than the local market price, that product can be considered "dumped".
Which Legal Conditions Are Necessary for Initiation Anti Dumping Investigation?
- The importation of the relevant product must be a typical example of dumping,
- Dumping should cause material damage / or threat of harm on domestic production,
- Causal link is necessary between this damage or threat and dumped imports.
Therefore, anti-dumping implies actions and practices implemented by relevant domestic authorities to prevent dumping. Anti-dumping investigations may be carried out by the competent Turkish authorities with the intention of the protection of local manufacturers.
For our work and all legal services on the matter of anti-dumping, please click our "Practice Areas", titled,
What are the Main Legal Instruments Applicable to Anti Dumping Investigatons in Turkey?
The Law on the Prevention of Unfair Competition of Imports (No: 3577) is the central to the anti-dumping actions and practice. In the Law in question, dumping is defined as 'export price of a product to Turkey being less than the normal value for the like product'.
The Decision on the Prevention of Unfair Competition of Imports and the Regulation on the Prevention of Unfair Competition of Imports are also available online here.
Conclusion
In the light of the foregoing, without benefiting an embracing anti dumping consulting service, it is quite challenging to handle investigation procedures in Turkey. It is fundamental to bear in mind that there are specific timeliness and deadliness for every single legal step in submitting defense arguments to the Ministry of Trade.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
