According to the data of the World Trade Organization, Turkey was stated as the sixth-ranked member country in the world for a period in anti-dumping practices. This situation emerges as data showing that the relevant measures are of vital importance in terms of the commercial dynamics of our country. In this bulletin, we have examined the definition of "dumping" in general and the anti-dumping practices carried out in our country and in the world.
What is dumping?
Dumping; It is the name given to the exporter company selling its goods in the foreign sector at a lower price than in the domestic sector. Dumping should not mean as selling cheap goods. A product can be cheap but not dumped, or expensive but dumped. The word “dumping” can be defined as a subject of comparison. This comparison; between the export price of a product and the normal value of the equivalent product in the exporting country. If the export price is lower than the normal value, the product is considered dumped. The name given to the difference between the two is the "dumping margin".
What does anti-dumping mean?
Anti-dumping can be defined as the decisions and practices taken with the aim of preventing the activities of breaking the competition. All decisions taken by ministries, trade unions and chambers of commerce in order to prevent all activities with the aim of breaking competition and to prevent unfair competition are considered as anti-dumping practices. With the aim of preventing unfair competition, WTO imposes many conditions on member states.
If a manufacturer proves that the product it has produced has been introduced into the sector at a cheaper price for another importer, it can open an investigation by making an anti-dumping application to the authorized institutions.
What are the anti-dumping practices in the world?
The terms of the World Trade Organization allow all member countries to take the necessary measures to protect their local industries against unfair trade practices by foreign exporters. Dumping export is one of the unfair trade practices that may be in question.
Competent authorities; They examine the extent of damage and dumping or the threat of damage, their existence, and the causal link within them, and take anti-dumping measures with the aim of preventing or compensating dumping when deemed necessary. Anti-dumping practices can be explained in this way.
How do anti-dumping practices manifest themselves in Turkey?
For developing countries like Turkey, besides the barriers to import, the protection of the domestic market against imported products is of great importance. The measures taken against unfair competition in our country have been revealed within the scope of the information obtained from the “World Trade Organization Anti-Dumping Agreement” and “European Union” practices. If there is a natural or legal person claiming that there was dumping and that he was harmed by it, the investigation regarding the initiation of an investigation, which is the first step of the process, is started upon the application of this person/persons. Although in theory such investigations can be initiated ex officio, in practice, in practice, investigations upon application are generally encountered, since all the conditions described in Article 19 of the "Regulation on the Prevention of Unfair Competition in Imports" must be met and sufficient evidence must be self-evident. When we look at it step by step, the investigation phase will proceed as follows:
• Producers claiming to have suffered material damage or threatened material damage from dumping or subsidized imports, or that such imports physically delay the establishment of a production branch, or by natural or legal persons or organizations acting on behalf of the production branch, "On the Prevention of Unfair Competition in Imports". Applying in writing to the General Directorate of Import, together with the information and documents showing the damage on the dumped import and the domestic production branch, and the causal link between the two, within the framework of the provisions of the 19th article of the Regulation,
• Following the investigation, which will be completed within 45 days at the most, by the General Directorate, a proposal is made to the Board for Evaluation of Unfair Competition in Imports on whether or not an investigation should be opened. If the Board decides not to open an investigation, the situation is notified to the complaining party.
• In the event that the Board for the Evaluation of Unfair Competition in Imports decides to open an investigation, the relevant country is notified and an investigation is initiated with a communiqué to be published in the Official Gazette.
• In the investigation phase, information about the concrete event is collected, respectively, and this information is evaluated, and as a result, it is ended with the decision to apply temporary measures, anti-dumping tax or price commitments or to close the investigation without taking any measures.
How long does it take to complete the investigation phase following the application made with the claim of dumping/subsidy?
According to the rules of the World Trade Organization, the processes listed above should normally be completed within one year from the opening of the investigation, but in no case longer than 18 months. During this period, no obstacles will be created regarding the transactions regarding actual importation.
Ünal § Partners Legal Team
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