Support in Anti-Dumping Investigations

An anti-dumping duty is a tool used to protect national producers from dumped imports from other countries. It is a special type of duty levied on goods subject to anti-dumping measures.

Anti-dumping duties increase the cost price of imported goods, which, accordingly, leads to an increase in their price to consumers or a decrease in sales margins. This affects both the demand for imported goods and the level of profitability of exporters and importers from the sale of their goods.

Anti-dumping duties may be applied both during and following the results of an anti-dumping investigation. An anti-dumping investigation is conducted to establish the facts of dumping and the harm to domestic producers resulting from such dumping. If the Ministry of Economy (the “Ministry”) has reached a positive conclusion regarding the existence of dumping, harm to domestic producers, and the causal link between them, anti-dumping duties are imposed.

Participation in the anti-dumping investigation is open to domestic producers and other parties who have notified the Ministry of their interest within the time limits specified in the notice of initiation of the anti-dumping investigation.

Such interested parties may include:

• a foreign producer, exporter, or importer of the goods;
• an association, the majority of whose members are foreign producers, exporters, or importers of the goods;
• competent authorities of the country of export of the goods;
• a national producer, manufacturer, or wholesaler of a similar product in the country of import;
• an association, the majority of whose members produce or wholesale a similar product in the country of import;
• a trade union uniting workers of enterprises that produce or wholesale a similar product in the country of import; and
• executive authorities in the country of import.

If your company is a national producer and suffers harm as a result of dumped imports from another country, you have the opportunity to initiate an anti-dumping procedure and protect your interests.

If you represent another interested party, you have the opportunity to defend your position and prove the absence of dumping, injury,and/or a causal link between them, and, accordingly, the absence of the necessity to apply anti-dumping duties.

Also, even if dumping and injury to national producers resulting from such dumping are established and an anti-dumping duty is imposed, interested parties may, under certain conditions, claim an individual anti-dumping duty rate that is lower than the general rate. Thus, interested parties with individual rates suffer less business losses as a result of the application of anti-dumping duties and may therefore have an advantage over their competitors (other exporters, importers, and/or producers).

A national producer may initiate an anti-dumping investigation by filing a complaint with the Ministry. Such a complaint must include, inter alia, the existence of dumping and injury alleged to have occurred, and the causal link between them.

A complaint may be filed if it is supported by Ukrainian producers whose combined production accounts for more than 50 per cent of the total production of similar goods produced by that part of the national producer’s enterprises that supports the complaint or raises objections. An investigation shall not be initiated if the total production of the producers supporting the complaint accounts for less than 25 per cent of the total production of the like product by the national producer.

If, on the date of submission of the complaint to the Ministry, the applicant is supported by producers whose combined production accounts for 25 or more (but less than 50) per cent of the total production of the similar product by a national producer, that applicant must, during the anti-dumping proceedings, obtain the support (or direct or indirect objections) of other Ukrainian producers in order to establish, by the date of initiation of the anti-dumping investigation, whether or not the complaint is supported by producers whose combined production accounts for more than 50 per cent of the total production of the like product by the national producer.

Upon receipt of a complaint, the Ministry initiates an anti-dumping procedure, during which it considers the evidence contained in the complaint in order to determine whether there is sufficient evidence to initiate an anti-dumping investigation.