In anti-dumping proceedings, an exporter can offer a price undertaking, instead of being subject to an anti-dumping measure.

 

With a price undertaking, an exporter agrees to export the product under investigation above a certain price limit, that is, at non-dumped or non-subsidised prices.

 

When the export prices are above this price limit, the company’s products are exempt from duties that would otherwise be charged when they are imported.

 

This is subject to certain conditions, usually including strict monitoring by the importing country’s authorities and regular reporting of export prices and verification procedures.

 

The European Commission enjoys considerable discretion in deciding whether or not to accept the offer of a price undertaking. It will accept an offer only where it is satisfied, based on a prospective analysis, that the price undertaking effectively eliminates the injury caused by dumping. The European Commission may also take into consideration the exporting country’s record on implementing core International Labour Organisation standards and environmental agreements.

 

In principle, this also applies to anti-subsidy proceedings, but there are some additional rules to be respected.

 

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