Anti-dumping and anti-subsidy measures are normally imposed for 5 years with the possibility of  extending them on the basis of a review investigation for one or more 5-year periods.

 

Provisional anti-dumping and anti-subsidy measures may be imposed no earlier than 60 days after an investigation has begun and normally within 7 to 8 months. Provisional measures can be imposed for a maximum of:

 

- 4 months for anti-subsidy;
- 6 months for anti-dumping.

The measures usually take the form of:

 

- an ad valorem or value-based duty — a duty calculated on the value of the invoice, for example 15 %; this is the most common form;
- a specific duty —calculated on a parameter other than the value, such as weight, for example €15 per tonne;
- a price undertaking.

The duties are paid by the importer in the country that imposed the measures and collected by the national customs authorities.

 

Duties may be equivalent to the level of the dumping margin or to the amount of the subsidy found, but they may never exceed that level. There is also the possibility of limiting the level of the duty to the minimum level necessary to eliminate injury (this is called the injury margin). The EU selects the lower of the dumping/subsidy margin and the injury margin. This is called the lesser duty rule.

 

What is the lesser duty rule?

 

After the dumping/subsidy margin and the injury margin have been calculated, both are compared.

 

If the injury margin is lower than the dumping/subsidy margin, the lower margin is used as the basis for the duty level.

 

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