Anti-Dumping Duties: What They Are and How They Affect Your Costs

If you import goods that compete with domestic manufacturers, you may encounter anti-dumping duties — additional tariffs that can dramatically increase your landed cost. These duties exist to protect domestic industries from unfairly priced imports, but for importers, they represent a significant cost factor that must be planned for.

What Is Dumping?

Dumping occurs when a manufacturer exports goods at a price lower than their normal value in the home market. For example, if a Chinese manufacturer sells steel domestically at $500 per tonne but exports it to the UK at $350 per tonne, that $150 difference constitutes dumping.

Governments investigate dumping claims filed by domestic industries. If dumping is confirmed and shown to cause material injury to domestic producers, anti-dumping duties are imposed.

How Anti-Dumping Duties Are Calculated

Anti-dumping duties are calculated as the difference between the normal value (home market price or constructed value) and the export price. They're expressed either as:

• Ad valorem — a percentage of the customs value (e.g., 48.5%)
• Specific — a fixed amount per unit (e.g., $85 per tonne)
• Variable — tied to a minimum import price

These duties are in addition to regular customs duties. So if a product has a 5% standard duty rate and a 30% anti-dumping duty, the total duty burden is 35% of the customs value.

Which Products Are Commonly Affected?

Anti-dumping measures are most frequently applied to:

• Steel and metals — Various steel products from China, India, Russia, and other countries
• Ceramics and tiles — Tableware, floor tiles from China
• Chemicals — Various industrial chemicals
• Textiles — Certain fabrics and finished goods
• Solar panels — Photovoltaic products
• Bicycles — From various Asian manufacturers
• Fasteners — Screws, bolts, and other hardware

The specific products and countries affected change regularly as investigations are completed and existing measures expire or are reviewed.

How to Check If Your Products Are Affected

In the UK

The UK Trade Remedies Authority (TRA) maintains a register of trade remedies listing all active anti-dumping and countervailing measures.

In the EU

The European Commission publishes measures in the Official Journal. The TARIC database includes anti-dumping duty rates alongside regular tariffs.

In the US

The International Trade Administration (ITA) maintains the Anti-Dumping and Countervailing Duty Orders database.

Always check before importing. Use your HS code to search the relevant authority's database for active measures. The correct HS classification is critical — a single digit difference can mean the difference between 0% and 50% additional duty.

Strategies to Manage Anti-Dumping Duties

1. Source from Non-Affected Countries

If anti-dumping duties target specific countries, consider sourcing from alternative suppliers in countries not subject to measures. For example, if ceramics from China carry anti-dumping duties, suppliers in Vietnam or India may offer competitive alternatives.

2. Verify Country of Origin Carefully

Anti-dumping duties apply based on the country of origin, not the country of shipment. Goods manufactured in China but shipped from a third country still attract Chinese anti-dumping duties. Transshipment to avoid duties is illegal.

3. Apply for Individual Duty Rates

Some anti-dumping measures allow individual exporters to apply for their own duty rate through a review process. If your supplier cooperates with the investigation, they may receive a lower rate than the residual duty.

4. Monitor Expiry and Review Dates

Anti-dumping measures typically last five years. As measures approach expiry, they may be renewed, modified, or terminated. Track review periods to plan sourcing adjustments.

5. Factor Into Your Landed Cost

Build anti-dumping duties into your cost calculations from the start. Failing to account for these additional duties can turn a seemingly profitable product into a loss-maker.

The Bottom Line

Anti-dumping duties can add 10-60% or more to your import costs on affected products. The key is to identify whether your products are subject to these measures before committing to purchase orders, factor them into your pricing, and explore alternative sourcing where the duty burden makes products uncompetitive.