We’ve spoken about UK Duties and Taxes a lot on this blog; they’re one of the largest costs in the importing process and, if you aren’t aware of them, they’re the ones that will catch you completely off-guard. (If you’re importing and you want to predict your UK Duties and Taxes, we have a free UK Duty calculator.)
However, for all the times we’ve spoken about Duties, we haven’t gone in depth and explained one of the largest duties you can be hit with – anti-dumping duty.
What Is Anti-Dumping Duty?
Dumping is the process of unloading a load of goods into a foreign market at much lower than market value. An anti-dumping duty is a higher tax levied on certain products that allows the government to control and monitor the introduction of them into the market. For example, a normal duty rating may be 3% – but an anti-dumping duty may be 37%. Anti-dumping tax usually used on suspiciously cheap products and is a way to protect the domestic market.
Why Do Anti-Dumping Duties Exist & When Are They Used?
We’ve already touched on this, but anti-dumping duties are used as a way to protect domestic markets from products being “dumped” inside of them. The higher tax fee discourages massive floods of people from importing the product – and, for people that do import it, the product will need to priced more expensively to make a profit because of the extra duty charges.
Anti-dumping duty is imposed on imports being ‘dumped’ in the UK and elsewhere within the EU. ‘Dumping’ is when foreign exporters sell goods abroad at a price lower than their local market rate. They may do this in order to offload stock faster by exporting, but can have a damning impact on the domestic markets of the importing country if not controlled.
The Anti-dumping duty measure is also imposed by the EU in an attempt to ‘counterveil’ imports that could harm UK industry. This duty increases the cost to import particular products. The idea is to boost domestic trade on particular items that they feel need a push in the right direction or to maintain an existing domestic industry.
Products With An Anti-Dumping Duty
Unfortunately there is no list of products that have an anti-dumping duty floating around – apparently that would make things too easy.
However, we’ve collated a few of the items that we commonly see people trying to import that have an anti-dumping duty for you to look at:
- Ceramic tiles
- Certain cold-rolled flat steel products
- Pump trucks from China have a 70% duty!
Remember – this list is by no means a full list. Check your item doesn’t have an anti-dumping duty before you import it.
How To Find If My Product Has An Anti-Dumping Duty
To find out if your product has an anti-dumping duty, all you have to do is find its duty rating. Many anti-dumping ratings will come with caveats, such as there’s only an anti-dumping duty on this product if its imported from a certain place, so it’s worth taking a look to see if there’s any way to avoid them.
We’ve written a step-by-step guide to finding your commodity code on the trade tariff that you can use to find your product’s duty rating, but let’s take a look at an example.
Let’s say you’re importing mosaic cubes and you want to check if they have an anti-dumping duty. First of all, you’ll need to open up the Trade Tariff.
From there, you will need to find the correct section that your goods are classified under; in this example, we’re importing tiles and that is under section XIII. Once you’ve identified this, you then need to further specify the type of product you’re importing.
We would click on mosaic cubes and the like, as we’re importing mosaic cubes. Once you’ve selected your item, you will be brought to a different page containing all those item details; from there, click on the “import” tab and you’ll be shown all the duties information.
As you can see, there are a lot of conditions and different ratings – but what you need is to find yours. Scroll down to find the country that you’re importing from to see if there’s an anti-dumping duty on it.
If we’re importing mosaic cubes from China, there’s an anti-dumping duty of 69.7%! Ouch. You can see how this could be potentially devastating for a business if the fees catch them off guard – so make sure that you know your duty rating ahead of time.
Hopefully, you found this post helpful and are now aware of what anti-dumping duties are and why they exist. If you are importing goods and you want some help with freight solutions, feel free to contact us or grab a free quote.