Anti-dumping and Anti subsidy Matters
Anti-dumping Duty – AD
Dumping occurs when a foreign producer sells a product at a price that is below that producer's sales price in the country of origin ("home market"), or at a price that is lower than the cost of production. The difference between the price (or cost) in the foreign market compared to country of origin is called the dumping margin. To balance this dumping margin an anti-dumping duty is levied on the products under consideration.
Countervailing Duty (CVD) or Anti Subsidy Duty
Governments subsidize industries when Governments provide financial assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, credits against taxes, and loans at terms that do not reflect market conditions. The statute and regulations establish standards for determining when an unfair subsidy has been conferred. The amount of subsidies the producer receives from the government is the basis for the subsidy rate by which the subsidy is offset, or "countervailed," through higher import duties.
 
FAQs on AD and CVD

Although, the concept of AD and CVD is different but the purpose of both is same i.e. to put Trade barrier mechanism in place in order to safeguard the interest of the domestic industries. Anti-dumping and countervailing duty cases can often reshape the competitive environment in an industry and can have profound effects on the companies involved. Given that dumping and countervailing duties can be vary upto 50%, so it is crucial that exporters and importers engage consultants with practical and genuine experience in this area.

Investigation or review of AD and CVD are very complex in nature and require a lot of administrative and data handling work that usually most of companies would never have experienced and if experienced then they know how complex are these processes.


Any AD or CVD investigation/review involves various steps as follows:
  • Initiation of Investigation/Review
  • Issuance of questionnaire to exporters and importers
  • Preliminary result by investigating/reviewing authority.
  • Final Result
In addition, these investigations/reviews sometime involve on-site scrutiny by the government officials of investigating/reviewing countries with an ever-present possibility of punitive assumptions being made where data is incomplete or insufficiently verifiable.

YKGTeam consists of Chartered Accountants, Legal Advisors, Trade Remedy Consultants who work in tandem to provide a holistic approach to the client.
YKGTeam has extensive relations with Trade Remedy Analysts and Counsels in most of the WTO member countries with whom, in conjunction, YKG Team handle all AD and CVD matters.
YKGTeam with extensive and rich experiences in the Anti-Dumping and Anti-Subsidy cases, offers following services in the field of Anti-Dumping and Anti-Subsidy investigations and reviews which helps the clients in following ways:

  • Framework for initiation of proceedings, or in the defence of a case initiated.
  • Preparation of response to questionnaire; and related data sets for submission.
  • Calculation of dumping margin and/or countervailing duties.
  • Submission of complete response with data sets to investigating/reviewing authorities.
  • On-site verification assistance.
  • Analysis of Preliminary and Final results and filing of rebut in case it is required.
We offer complete and one stop solution for all AD and CVD requirements whether it is a full assignment or with a limited scope. Limited scope assignments include expert advice and review of response.

Apart from the Investigation/review activity YKG Team also offers other services, related to AD and CVD:
  • Strategic planning and market research for domestic and international markets
  • Substantive injury to the industry
  • Analysis of various indices affecting the industry
  • Negotiations for price undertakings, cost records and financial implications etc.
  • Preparing questionnaires replies for new shipper review
  • Drawing up a complete framework in the matter of sunset reviews and expiry reviews
  • Monthly/Quarterly monitoring of Anti-Dumping:
  • Framework to minimize or removal of Anti-Dumping duty for upcoming investigations; if any.
  • Training of staff for improving understanding and better results.
YKG Team has a proven track record while defending their clients in following countries:
  • USA,
  • Brazil,
  • European Union (EU),
  • Republic of Korea,
  • Turkey,
  • Indonesia; etc.
Packaging, Chemicals, Steel, OCTG are the few sectors in which YKG team has serviced their clients.
 
     
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