Initiation of an investigation

 

Once the Office of Complaints of the European Commission has received a written complaint, it sends an acknowledgement of receipt to the complainant. The European Commission will then analyse the complaint and decide whether or not it contains sufficient evidence of dumping/subsidisation, and of injury suffered by the EU industry and caused by the dumped/subsidised imports. If these requirements are met, an investigation concerning the alleged dumped/subsidised imports will be initiated within 45 days after the lodging of the complaint.

 

The investigation

 

An investigation officially starts with the publication of a notice of initiation published in the Official Journal of the European Union. Following the initiation, known producers and all other interested parties will receive forms or questionnaires to be completed by a specific deadline as indicated in the notice of initiation.

 

In investigations involving many producers, sampling will be applied. In practice, this means that companies will be asked to provide data on production, sales, employees, etc., to allow the European Commission to choose a sample. Deadlines to return the completed sampling questionnaires are rather short. It is, however, important to participate in the sampling exercise so that the European Commission has sufficient data to choose a sample that representative of the EU industry as a whole, including smaller businesses.

 

What is a sample?

 

In investigations involving many producers, the investigation will be based on data provided by a sample of selected companies representing the EU industry as a whole, including smaller businesses.

 

Once a sample has been selected, the sampled companies will receive an injury questionnaire, which has to be completed within 30 days. In justified cases, requests for extensions of the deadline can exceptionally be granted. Once the European Commission has analysed the questionnaire replies, it may ask companies for additional information.

 

On-site verification visits

 

Normally during the third or fourth month after initiation of the investigation, the Commission services conduct verification visits at the premises of the producers. The purpose of such visits is to verify the data provided in the questionnaire replies. Usually two Commission officials visit a company for 2 days. The visit is announced sufficiently far in advance that the company has time to prepare relevant documents and supporting evidence. Thorough preparation for the visit is important, since it is the opportunity for the company to provide clarifications and correct possible errors in the questionnaire replies.

 

Provisional measures

 

Provisional anti-dumping duties may be imposed before the investigation has finished, normally within 7 months, but at the latest 8 months after initiation. Provisional anti-subsidy duties may be imposed within 9 months after initiation.

 

Three weeks before imposing provisional measures, the European Commission will make public on its website the intention to impose, or not, such measures so that interested businesses can plan ahead. At the same time as the publication of the provisional measures, interested parties will receive the so-called ‘disclosure’. The disclosure gives the details of all the facts of the investigation and the detailed calculations for the company concerned. Parties have 15 days to provide comments. Where provisional measures are imposed, they can remain in place for a maximum of 6 months in cases of anti-dumping duties and 4 months in cases of anti-subsidy duties before definitive measures are imposed or the investigation is terminated.

 

Please note: provisional measures are not imposed in all cases. The European Commission may decide not to impose provisional measures but to continue the investigation and propose the imposition of definitive measures, if warranted.

 

Definitive measures

 

In anti-dumping cases, definitive measures are normally imposed at the latest 14 months after the initiation of an investigation (13 months in anti-subsidy cases). Companies will usually receive the definitive disclosure in the 12th month after initiation. The definitive disclosure contains all essential facts that form the basis for the final determinations and the detailed calculations regarding the company concerned. All comments received after the provisional disclosure are analysed and taken into account as appropriate in the definitive findings. Parties have 10 days to comment.

 

Definitive measures normally remain in force for 5 years unless they are changed, removed or prolonged through a review investigation. For more details regarding reviews, please refer to Chapter 5.

 

What are the differences between anti-dumping and anti-subsidy cases?

 

Many of the procedural aspects of anti-dumping and anti-subsidy investigations are similar. However, instead of providing evidence of dumping, the complainant needs to show that exporting companies are benefiting from a subsidy by their government or any public body. Please see Chapter 1 regarding the definition of a subsidy. Potential sources of information to prove that subsidisation has taken place can include legal acts, official publications, news articles or publications from foreign chambers of commerce.

 

Source: “TDI Trade defence instruments, Anti-dumping & Anti-subsidy - A Guide for Small and Medium-Sized Businesses” by the European Commission