In February 5, 2014, the European Parliament approved the European Commission’s proposal to update the EU’s anti-dumping and countervailing duty rules and proposed even further reaching changes.
Removal of the lesser duty rule in specific situations
- Under the current rules, an anti-dumping or countervailing duty may not exceed what is necessary to remove the injury caused to the Union industry (lesser duty rule). Given that dumping and/or subsidy margins are often higher than the injury actually suffered by the Union industry, the rule often leads to lower duties than if the rule had not applied. The European Parliament is now proposing to abandon the lesser duty rule in the following situations:
- Where the investigation targets countries that do not have a sufficient level of social and environmental standards;
- Where structural distortions on raw materials and energy exist with regard to the product concerned;`
- Where it is established that the targeted exporting country provides subsidies to the producers of the product concerned; and
- Where the Union industry is largely composed of small and medium-sized enterprises.
Better support to small and medium-sized enterprises
The European Parliament proposes to set up a dedicated help desk to assist small and medium-sized enterprises in filing complaints, achieving the necessary thresholds for the initiation of investigations, and presenting evidence of dumping and injury.
Reduction of the investigation’s timeframe
The European Parliament proposes that investigations be limited to nine months (down from 15), and that provisional duties be imposed no later than six months after the initiation of the investigation (down from nine months).
The proposal, as amended by the European Parliament, will be presented for approval to the Council of the EU in the next coming weeks.
If you have any questions regarding this update, please contact the Sidley lawyer with whom you usually work.