Above all, this article provides a brief overview of the adoption of anti-dumping investigation against the import of uncoloured float glass from the Russian Federation. This procedure has been initiated by a Communiqué on the prevention of unfair competition in imports. The Communiqué was published in the Official Gazette dated 29 November 2022.
What is the meaning of “dumping”?
Generally speaking, “dumping” refers to a situation in which the export price of a goods is lower than market price of the same goods in the exporting country. According to the World Trade Organization, dumping is the sale or import of a particular product at less than fair value.
Which Legal Conditions Are Necessary for Taking Anti-Dumping Measures?
Overall, there are 3 basic conditions to take anti-dumping measures:
- First, the importation of the relevant product must be a typical example of dumping,
- Second, dumping should cause material damage / or threat of harm on domestic production,
- Third, causal link is necessary between this damage or threat and dumped imports.
Therefore, anti-dumping implies actions and practices implemented by relevant domestic authorities to prevent dumping. Particularly, anti-dumping investigations may 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) is the central to the anti-dumping actions and practice. In the Law in question, dumping is defined as ‘export price of a product to Turkey being less than the normal value for the like product’.
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.
What Kinds of Anti-Dumping Duties May Be Implemented?
Three anti-dumping measures can be taken by national authorities:
- price undertakings within the context of Article 11 of the Law on the Prevention of Unfair Competition of Imports,
- preliminary measures according to Article 12,
- definitive measures under Article 13.
What is the base of the new investigation against Russia-centric imports of uncoloured float glass?
Relevant companies may lodge an application before the General Directorate of Imports under the umbrella of the Ministry of Trade. Pursuant to Article 4 of Law No. 3577, the Directorate General has the authority, upon complaint or where necessary, ex officio, to initiate a dumping examination.
The investigation has been recently initiated because of a complaint by a well-known local company: Türkiye Şişe ve Cam Fabrikaları AŞ. Under those circumstances, this company has been recognized as a “domestic production branch”.
This will be a final review investigation into the definitive measure under Article 13 of the Law,
What is the product complained of?
The relevant product under investigation is “uncoloured float glass” under HS 7005.29.
Who are the parties to the anti-dumping investigation against Russia-centric imports of uncoloured float glass?
Exporter, foreign producer and importer of the product under the investigation, professional associations with the majority of members consisting of those, and the majority of members of producers of similar goods in Turkey are considered as “interested parties”.
Following the opening of the investigation, a notification is made to the known producers exporters residing in the country subject to the investigation, the Embassy of the country subject to the investigation in Ankara, and the known importers of the product subject to the investigation identified in the application and determined by the Ministry, regarding the opening of the investigation in accordance with article 9. In this way, relevant importers and exporters of the product in question are given time to answer the inquiry questionnaires.
Which Authority is the competent national authority for the anti-dumping investigation against Russia-centric imports of uncoloured float glass?
The Directorate General on Imports of the Ministry of Trade is authorized to initiate and carry out an investigation under Article 2 and 3 of the Comminiqué.
What kind of legal steps should be taken by Interested Parties for the anti-dumping investigation ?
The inquiry questionnaires should be answered very carefully by Interested Parties within 37 days. The Parties should prove
- first, the relevant product under investigation does not constitute an example of dumping,
- second, it does not cause any material or potential damage or
- third, there is not any legal link between the damage and the importation complained of.
By all means, time limit is very critical. Within given time limits, if the relevant party does not give necessary information and documents, or rejects access to such information and documents, or gives false or misleading information, they may face up harsh anti-dumping measures under Article 12 of the Comminiqué.
To conclude, the anti-dumping investigative procedures in Turkey include a set of complex administrative stages. Every single step requires the understanding, absorbing and application of both national and international legislative framework on Anti-Dumping. Accordingly, without comprehensive legal and technical assistance, anti-dumping investigations may end in strict anti-dumping penalties and sanctions against Interested Parties. On the contrary, a comprehensive consultation will play a key role in meeting investigation requirements. That is also essential to escape unintended consequences.