anti dumping investigations in turkey

Anti Dumping Investigations in Turkey 

Aladdin İraz

Founding Partner | Senior Lawyer

Pi Legal Consultancy 

Introduction

The present article primarily aims at delivering embracing observations overview of anti dumping investigations in Turkey. Generally speaking, anti dumping measures are imposed with the purpose of protecting particularly Turkey-centric products. It will be displayed that anti dumping consulting service is necessary for any importers during an investigation procedure. 

What does “dumping” mean?

Since the main objective of this paper is to highlight the question of how entrepreneurs may avoid it, it will explain the meaning of dumping at this juncture. In general, “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.

What does dumping mean in foreign trade?

It is important to note that according to the World Trade Organization (“WTO”), 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”.

For our work and all legal services on the matter of anti-dumping, please click our “Practice Areas”, titled “Anti-Dumping”.

What are the 4 types of dumping?

In summary, there are five types of dumping: 

  • sporadic dumping,
  • predatory dumping,
  • reverse dumping
  • persistent dumping.

What is meant by anti dumping?

Generally speaking, anti-dumping implies actions and practices implemented by relevant domestic authorities to prevent dumping-led imports. To clarify, most states are inclined to impose very hard measures with a view to preserving their domestic producers from the risks of imports and unfair competitive conditions. Governmental institutions focus on preventive impositions on foreing imports by means of anti-dumping policies. 

What is the primary legislation for anti dumping investigations in Turkey?

The Law on the Prevention of Unfair Competition of Imports (Numbered 3577) has been at the heart of 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’. In accordance with Article 1, main objective of this Law is to regulate the rules and principles applicable unfair competition practices in imports.

The full text of the said Law is available online here.

Additionally, Turkey is party to relevant international treaties, particularly inter alia General Agreement on Tariffs and Trade and Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (mainly known as “WTO Anti-Dumping Agreement”).

Which authority can initiate anti dumping investigations in Turkey?

Relevant individuals and companies may lodge an application before the General Directorate of Imports under the umbrella of the Ministry of Trade. Significantly, pursuant to Article 4 of Law Numbered 3577, the Directorate General has the authority, upon complaint or where necessary, ex officio, to initiate a dumping examination. The Directorate General may submit its proposal to the Board of Evaluation of Unfair Competition in Imports and its duties on whether or not to initiate an investigation.  

 

Who can bring a dumping complaint in Turkey?

A local manufacturer that is authorized to represent any branch of domestic production or natural or legal persons acting on behalf of the production branch may lodge a complaint. 

How to initiate anti dumping investigations in Turkey?

To summarize, after detecting the existence of sufficient evidence on dumped action, an investigation shall be initiated. The important thing here is that the introduction and every step of the investigation is announced with a communiqué published in the Official Gazette. Then relevant importers and exporters of the goods are given time to answer the inquiry questionnaires. Investigations must be concluded within 1 year, except in special circumstances. The decision taken as a result of the investigation is also announced with a communiqué published in the Official Gazette.

What are the 3 legal conditions for taking anti dumping measures?

Above all, there are 3 basic conditions to take anti-dumping measures:

  1. The importation of the relevant product must be a typical example of dumping,
  2. Dumping should cause material damage / or threat of harm on domestic production,
  3. Causal link is necessary between this damage or threat and  dumped imports.

What are the 3 main anti dumping duties in Turkey?

In general, the 3 main anti-dumping measures can be implemented by national authorities:  

  1. price undertakings within the context of Article 11 of the Law on the Prevention of Unfair Competition of Imports,
  2. preliminary measures according to Article 12,
  3. definitive measures under Article 13.

Why do you need anti dumping consulting service?

First of all, the inquiry questionnaires should be answered very carefully. It is particularly significant to prove that the importation complained of is not an example of dumping, it does not cause any material or potential damage or at least there is not any legal link between the damage and the importation complained of. 

The most important point to be considered here is that since all investigations initiated and the decisions taken during or after the investigation are announced with a Communiqué. It means that parties may bring each stage before administrative courts. 

Moreover, there are very specific and certain timeliness and deadliness for submitting your defence arguments and legal responses during investigation procedure. Accordingly in the absence of a full-fledged anti dumping consulting service, anti dumping investigations and measures are very difficult to read accurately and take a step correctly. 

Last but not least understanding timeliness and deadlines is not easy for domestic remedies against anti dumping investigations. 

Conclusion 

In conclusion, anti dumping investigations in Turkey include a set of administrative stages. Those stages require the understanding, absorbing and application of both national and international legislative framework.  A comprehensive anti dumping consultation service will pave the way for meeting correctly legal requirements for investigation procedures. Besides a full-fledge legal guidance will make you save time and escape litigation costs. Pi Legal Consultancy anti dumping lawyers offer a comprehensive anti dumping consulting service to foreign and domestic clients. 

Contact our lawyers or experts today for a free case evaluation.

 

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