All goods being imported into the UK must be declared to HMRC to ensure that any VAT, duty, excise and levies can be collected. However, the sheer mention of tax or customs brings a glazed, confusion to many of us.
With many different regulations involved in the process of customs clearance it can be difficult to know in which situations charges are and are not applicable.
One duty that causes a great deal of confusion is the anti-dumping duty. (ADD)
Anti-dumping duty is an additional duty levied on goods from outside of the EU, designed to prevent unfair, cheap competition from external markets that could have a negative impact on the domestic market.
How is it decided whether Anti-Dumping duty should be applied to EU imports?
Goods imported into the EU at a lower price than the ‘normal value,’ that is a price lower than the price of like goods in the country from which they originate, can be subject to anti-dumping investigations. The import of a significant level of goods or a large amount of goods from a specific country can also give rise to anti-dumping investigations.
If it is believed that imports may have a negative effect on domestic markets, trade associations will take action to instigate an investigation to be carried out. These investigations are undertaken by the Trade Defence Section of the European Community or, in extreme cases, the European Anti-Fraud Office (OLAF).
If the authorities determine that the margin of dumping is insignificantly small, investigations will end. But in instances where it is decided goods are deliberately being dumped anti-dumping duties will be applied.
How is anti-dumping duty collected?
All import declarations are made against commodity codes. It is vital to ensure that you declare your items being shipped against the correct commodity code to ensure that you are paying the correct tax and duties. Incorrect declarations can lead to delays in items being released and even fines from HMRC.
In instances where the EU are investigating suspected cases of dumping, provisional duties may be payable against goods being imported, or it may be required to pay duties at a later date if under investigation at the time of import.
For companies looking to maximise their cash flow, utilising a customs bonded warehouse enables the deferment of duty payments until goods are released for sale within the EU.
Who can help ensure the correct payment of duties is being made?
Given the frequency of changes to items for which anti-dumping duty is applicable, and the general complexity of customs clearance, it is advisable to utilise the services of a specialist customs clearance team. Experienced customs teams have knowledge of the latest customs regulations, and will undertake double checking of commodity codes to ensure accurate declarations, avoiding overpayment of duties, fines or delays on the import of your goods.