Customs, tax & compliance AD

Anti-dumping and countervailing duty

An extra duty a country imposes on imports sold below the exporter’s home-market price (dumping) or supported by state subsidies, where these injure domestic producers. After an investigation, rates are set for specific origin countries and even individual companies; they are very common for raw materials such as steel, aluminium, PET, PVC, chemicals and fibres. Rates can exceed 100 %, so measures in force for the HS code and origin must always be checked when planning imports, and misdeclaring origin through transshipment brings severe penalties.

Related terms

Import duty (customs tariff)

A tax charged on imported goods on their customs value, according to the HS code and country of origin. It is usually a percentage of value (ad valorem), sometimes an amount per quantity (e.g. EUR per tonne). The rate can change with the general WTO rate (MFN), free trade agreements (zero or reduced rates), additional duties or anti-dumping measures. In landed-cost calculations it is computed on the CIF value including freight and insurance and is then added to the VAT base.

HS code (Harmonized System)

The World Customs Organization’s goods classification system, used in about 200 countries. The first six digits are the same everywhere (e.g. 3902.10 polypropylene); countries add their own subdivisions – 12-digit GTİP in Türkiye, 8-digit CN and 10-digit TARIC in the EU, 10-digit HTS in the USA. The correct code determines the duty rate, import licences, anti-dumping measures, preferential origin rules and trade statistics. Misclassification can lead to back duties and penalties; where unsure, a binding tariff information (BTI) ruling can be requested.

Certificate of origin and preferential origin proofs (EUR.1, A.TR, Form A) C/O

A document showing the country in which goods were produced or obtained, usually certified by a chamber of commerce. Non-preferential certificates serve anti-dumping, quota and import-ban rules; preferential proofs give reduced or zero duty under free trade agreements – the A.TR movement certificate for industrial goods between the EU and Türkiye, EUR.1 or an origin declaration on the invoice where origin rules are met, Form D in ASEAN, Form E under China’s agreements, and so on. Origin rules vary by product, and false documents bring large duty differences and penalties.

Explained in the trade handbook

Trade handbook