A new decision on 2024 Anti Dumping Investigation against Egypt has been given by the Turkish Ministry of Trade for a new anti-dumping investigation against Egypt. This paper will present a brief outline of the latest developments on the subject matter together with the meaning of anti dumping consultancy.
Introduction
A new decision on 2024 Anti Dumping Investigation against Egypt was made by Turkey. This article aims at clarifying the latest developments about follow-up procedures. The decision has been newly declared in the Official Gazette of August 9,2024 [COMMUNIQUÉ NO: 2024/26] Turkish business lawyers and all legal practitioners should stay on track about upcoming steps by the Ministry of Trade. Anti dumping lawyers should analyze the procedure carefully on behalf of their clients.
What is meant by dumping?
Overall, "dumping" means a situation in which the export price of a goods is lower than market price of the same goods in the exporting country. Dumping is accepted to happen when a company originating from a different country exports a product into the receiver country at a price lower than in the receiver country's market.It is noteworthy to underline that even the definition of dumping presents significant challenges for even legal practitioners including anti dumping lawyers.
Regarding a comprehensive analysis of current customs regime, see our articles on
Export Customs Regime in Turkey
What is meant by dumping in foreign trade?
International community produces different types of definitions for the word dumping. It is particularly significant to consider what is meant by dumping. According to the World Trade Organization, dumping is the sale or import of a particular product at less than fair value. Technically, this comparison will be made between the export price of a goods and the "normal value" of the equivalent goods in the exporting country. If the export price is lower than the local market price, that product can be considered "dumped".
With regard to the useful observations about import customs regime of Turkey take a look at our article on Import Customs Regime in Turkey
What is an example of foreign dumping?
If any company from Egypt sell cotton to the Turkey with a price lower than the same product's domestic price and this difference causes material damage and|or at least threat of damage on domestic production, this is regarded as a foreign dumping.
See our articles on 2024 investigations here
Which are legal grounds for the initiation of Anti Dumping Investigation?
One needs to bear in mind that the initiation and finalization of an anti dumping investigation require a complete procedure. From that sense, there are four main pre-conditions to initiate an anti dumping investigation pursuant to the Turkish legal system:
What are the four pre-conditions of initiating an anti dumping investigation in Turkey?
- The importation of the relevant product into the country can be regarded as a typical example of dumping,
- The complainant company should be capable of representing a large platform of relevant business sectors. It is critical to underscore that the application should be made by the domestic producer, which has been determined to have the representation status of the domestic industry within the framework of Article 18 of the Regulation, should be made on behalf of the domestic industry in accordance with Article 20 of the Regulation. In that case, the said company can also be referred to as the "domestic industry".
- There must a proof that dumping should cause material damage and|or at least threat of harm on domestic production,
- In terms of allegation of injury, there must be a causal link between this damage or threat and dumped imports. It is critical to stress that in determining the export price, the weighted average unit export prices on CIF basis for the imports of the product concerned from the relevant country, is taken as the basis, using the data in the Ministry's statistical database.
It necessarily follows that anti-dumping measures necessarily require actions and practices implemented by relevant domestic authorities to prevent dumping with a view to protecting domestic producers. Indeed, anti-dumping investigations aim at protecting local producers. Anti dumping investigation can thus be carried out by the competent Turkish authorities with the intention of the protection of local manufacturers.
For our work and all legal services on the matter of anti-dumping, please click our "Practice Areas", titled, Anti Dumping
What are the Main Legal Instruments Applicable to Anti Dumping Measures in Turkey?
The Law on the Prevention of Unfair Competition of Imports (No: 3577) applies to anti-dumping actions and practice. Dumping is defined as 'export price of a product to Turkey being less than the normal value for the like product'. The Law stipulates the rules and principles as regards the procedures to be applied and measures to be taken for purposes of protecting a domestic industry against injury caused by unfair competition practices in imports namely, dumped or subsidized imports.
The Decision on the Prevention of Unfair Competition of Imports and the Regulation on the Prevention of Unfair Competition of Imports are also available online here.
Absorbing and understanding anti-dumping legislation play a significant role upon escaping severe financial measures by competent national authorities. Accordingly, anti dumping laws should be carefully analyzed in the case of anti dumping investigations first. You may benefit from our updated article on Anti Dumping Investigations in Turkey.
An investigation period is started as a declaration of relevant Communiqué. This Communiqué has been prepared on the basis of the Law on the Prevention of Unfair Competition in Imports No. 3577 dated 14/6/1989, the Decision on the Prevention of Unfair Competition in Imports put into force by the Council of Ministers Decree No. 99/13482 dated 20/10/1999, and the Regulation on the Prevention of Unfair Competition in Imports published in the Official Gazette dated 30/10/1999 and numbered 23861.
What is the News on 2024 Anti Dumping Investigation against Egypt
According to Article 3, measures shall be taken in cases where dumped or subsidized imports have caused material injury or threatened to cause material damage to the domestic industry.
A decision on 2024 anti dumping investigation against Egypt has been made by the Turkish government. The decision concerned necessitates the implementation of an effective investigation process.
This procedure will be regulated by a Communiqué on the Prevention of Unfair Competition in Imports published in the Official Gazette on August 9, 2024. Critical process has started after the announcement of this investigation in the Official Gazette dated August 9, 2024. The Turkish Ministry of Trade initiated an anti-dumping investigation regarding granit products classified under HS Codes 6802.23 ve 6802.93 originating from Egypt. It is of great importance for local companies to closely monitor the implementation of the measure process and to submit the technical file containing the requested detailed information, documents, and defenses to the relevant Turkish Authorities in a timely and complete manner.
What is the Objective and Scope of 2024 New Investigation against Egypt
The purpose of this Communiqué is to start a comprehensive investigation due to a complaint by Granitürk İnşaat Maden Nakliye Turizm Akaryakıt Kömür Gıda San. ve Tic. A.Ş. and supported by Doğal Taşlar Madencilik San. ve Tic. A.Ş., İzgranit Mad. Lojistik San. ve Tic. Ltd. Şti., Yıldızlı Granit Madencilik ve İnş. Nakl. San. Tic. Ltd. Şti., Hasbay Madencilik Peyzaj Nak. İnş. Taah. San. ve Tic. Ltd. Şti. ve Reel Taş San. ve Tic. A.Ş. In accordance with Article 5 of the Communiqué, the complainant party is considered as having a capacity of representing the domestic production area.
Who is in charge of performing 2024 Anti Investigation against Egypt
The Dumping and Subsidy Department under the Directorate General of Imports of the Ministry of Trade is given the main mandate to carry out the 2024 Anti Dumping Investigation against Egypt and Bahrain under Article 10 of the Communiqué in question.
What is the potential result of any ignorance against the 2024 Anti Dumping Investigation against Egypt?
According to Article 26 of the Regulation on the Prevention of Unfair Competition in Imports published in the Official Gazette dated 30/10/1999 and numbered 23861, if one of the relevant parties fail to provide the necessary information and documents within the specified periods and in the requested form, or if it is understood that they obstruct the investigation or provide false or misleading information, the said party shall be deemed not to have cooperated. In such cases, temporary or final determinations within the scope of the investigation can be made based on the available data, whether positive or negative. It is found useful by foreign importer companies by benefiting from English-speaking lawyers during the process.
Conclusion
Having regard to the above, it is worth reiterating that anti dumping investigation consists of
a detailed administrative procedure within the umbrella of the Ministry of Trade. The 2024 anti dumping investigation against Egypt is a new period. It has been already proven that that investigation will have a direct impact upon several companies about their ongoing businesses. All those companies have very critical timeliness and deadlines to submit defense arguments to the Ministry of Trade. In the lack of a full-fledged anti dumping consultation, severe commercial sanctions may be applicable by the Ministry of Trade in Turkey. What is more, such implications may directly impact their buyers from Turkey because of additional tax and related sanctions. If the relevant party does not submit a proper answer sheet through Questionnaires, the Ministry of Trade is empowered to use administrative sanctions including additional tax applications.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.