Dumping and subsidisation
Whether involved in an Australian industry producing goods; or exporting to Australia; or, importing goods into Australia, it is useful to know some basic concepts about Australia's anti-dumping laws.
What is dumping?
What is a subsidy?
What action may be taken by Australian industry?
How will importers be affected?
How does the investigation proceed?
The Dumping Commodities Register - Introduction to ICS
For more information
World Customs Organisation documents
What is dumping?
Dumping occurs when goods are exported to Australia at a price that is below the "normal value" of the goods. The "normal value" will usually be the domestic price of the goods in the country of export.
Dumping is a form of price differentiation between markets. It is not a prohibited practice under international trade agreements - but remedial action may be taken where dumping causes (or threatens to cause) material injury to an Australian industry.
The duty imposed on imported goods to offset the effects of dumping is called a "dumping duty". Dumping duties are usually imposed for a five-year period.
An alternative remedy to imposing dumping duty is for the Minister to accept a price undertaking from the exporter. By this means the exporter agrees that future trade will be at or above a minimum export price (equal to the normal value). Such undertakings also usually apply for a five-year period.
What is a subsidy?
A subsidy is any financial assistance (or income or price support) paid by a foreign government that benefits an exporter, either directly or indirectly. If the effect of the subsidy causes (or threatens to cause) material injury to an Australian industry, remedial action may be taken.
A duty imposed to counteract a subsidy is called a "countervailing duty". These duties usually apply for five years.
What action may be taken by Australian Industry?
Before any action may be taken against dumped or subsidised goods, the Australian industry concerned must demonstrate not only that there is dumping (or a subsidy) occurring but also that it has suffered material injury as a result. This is done through an application to the Australian Customs Service for an investigation into the facts of the case.
Where the industry's claims are considered to warrant an investigation, Customs will publicly notify the investigation. In addition, Customs will write to all known importers and exporters of the goods inviting their participation in the investigation.
How will importers and exporters be affected?
In advising importers and exporters of the initiation of an investigation, Customs will also be seeking information on import and export transactions. This information is required within 40 days of the commencement of the investigation.
Customs may then seek to visit the premises of the importers and exporters to undertake further investigations and verify the information provided.
Investigations with the exporter are concerned with assessing a normal value and establishing whether dumping or a subsidy exists. In the case of a subsidy, Customs would also seek consultations with the foreign government concerned.
Investigations with the importer are aimed at determining whether all costs are recovered in the sale of the imported goods in the Australian market.
How does the investigation proceed?
Customs has up to 155 days to complete its investigation and report to the Minister.
Submissions from importers, exporters and any other interested parties are due within 40 days from the commencement of the investigation.
From day 60 of the investigation period, Customs may impose provisional measures (in the form of securities) on imports of the goods. This will only occur when there is sufficient verified information available. A statement of reasons - a Preliminary Affirmative Determination - would accompany such action.
On or before 110 days after the initiation of the investigation, Customs must issue a Statement of Essential Facts on which it proposes to base its report to the Minister. Interested parties will then have 20 days to respond and lodge submissions on matters of concern.
After consideration of the submissions received, Customs will report its conclusions and recommendations to the Minister before day 155 of the investigation. A non-confidential version of Customs report will be sent to all interested parties after the Minister's decision is announced.
Any appeal by an interested party against the Minister's decision must be lodged with the Trade Measures Review Officer within 30 days of the announcement. Other parties have a further 30 days in which to lodge submissions in response to the grounds of appeal. The Review Officer must make recommendations to the Minister within 60 days of the public notification of the review.
Dumping and Subsidy Fact Sheet (143KB)
The Dumping Commodities Register - Introduction to ICS
The foreword to the Dumping Commodities Register (DCR) has been revised to take into account and explain dumping related ICS changes. This document is titled the DCR introduction to ICS
The Dumping Commodities Register - Introduction to ICS
For more information
Further information about dumping and subsidy matters is available from the Dumping Liaison Unit within the Trade Measures Branch of Customs:
Telephone: (02) 6275 6066
Facsimile: (02) 6275 6888
or by writing to:
The Director
Dumping Liaison Unit
Trade Measures Branch
Australian Customs Service
5 Constitution Avenue
Canberra ACT 2601