Anti-dumping duty is a duty charged in addition to customs duty on imports of a product when an investigation establishes that the product is exported to Türkiye below its own domestic market price (normal value) and that this injures domestic production. It is based on Law No. 3577 and applied by GTİP (Turkish HS/tariff code), country of origin and often by manufacturer.
Dumping and anti-dumping duty
Law No. 3577 on the Prevention of Unfair Competition in Imports (İthalatta Haksız Rekabetin Önlenmesi Hakkında Kanun) defines dumping as a product's export price to Türkiye being below the normal value of the like product. The normal value is, as a rule, the comparable price on the exporting country's domestic market. The difference is called the dumping margin. The duty is set at the dumping margin or at a lower rate sufficient to remove the injury. The person liable is the importer of the goods; customs administrations collect the duty on importation separately from other duties or secure it with a guarantee. The measure does not prohibit imports; it only increases their cost.
How does an investigation work?
- Application: A complaint is lodged on behalf of the domestic industry, or the Directorate General of Imports of the Ministry of Trade (Ticaret Bakanlığı İthalat Genel Müdürlüğü) acts on its own initiative.
- Initiation: The investigation is announced by a communiqué in the Official Gazette; questionnaires are sent to exporters, importers and domestic producers.
- Provisional measure: If preliminary findings show dumping and injury, a provisional measure in the form of a guarantee may be imposed. It cannot be applied within 60 days of initiation; it lasts 4 months, extendable to 6 months under certain conditions and to 9 months in special cases.
- Final disclosure: The findings are shared with the parties and their views are obtained.
- Definitive measure: Rates by GTİP, country of origin and company are announced by communiqué. The measure may be set as a percentage of the CIF value or as an amount per unit.
How long does a measure last?
Definitive measures expire five years after entry into force. Before expiry, the domestic industry may request an expiry review investigation, claiming that dumping and injury would recur if the measure lapsed. If an investigation is initiated, the measure remains in force until it concludes. If the measure is circumvented, for example by shipping via a third country or importing in parts, a separate investigation may be opened to extend the measure to such imports.
Difference from other additional charges
| Criterion | Anti-dumping duty | Additional customs duty / additional financial obligation |
|---|---|---|
| Legal basis | Law No. 3577 | Presidential decisions |
| Investigation | Mandatory; dumping, injury and causation must be proven | Not required; imposed as a trade policy choice |
| Scope | GTİP, origin and often manufacturer | GTİP and origin or country group |
| Duration | 5 years as a rule | Until the decision is changed |
Additional duty is explained separately in the entry additional customs duty.
Effect on the declaration and on cost
Whether the measure applies is determined by the GTİP and origin. For a company-specific rate, the manufacturer on the invoice must be the same as the company named in the communiqué; manufacturers not named are subject to the rate set for "all other companies", which is often the highest rate. In most files, origin is proven with a certificate of origin. As one of the duties paid on importation, anti-dumping duty is also included in the VAT base under Article 21 of the VAT Law; when performing the customs duty calculation, the total cost should therefore be worked out accordingly.
Common mistakes
- Checking the measure communiqué only against the 8-digit heading without reading the description and exception footnotes
- Not checking the new manufacturer's company-specific rate when changing suppliers
- Not updating the order plan for the risk of a provisional measure once an investigation has been initiated
Obtaining regulatory consultancy to screen the list of measures before sourcing decisions reduces the risk of additional duty arising later.