How do UK Anti-dumping Duties Affect the Cost of Importing from China?

Anti-dumping duties can be a major additional cost when importing certain products. In this article, we’ll explain what anti-dumping duties are, what type of products tend to be hit with anti-dumping duties, and what businesses can do to avoid them.

What are Anti-dumping Duties?

Western countries cannot always compete with international suppliers in terms of cost. This can be due to lower labour costs, more relaxed regulations, or simply a greater abundance of certain resources. In order to protect local suppliers from being pushed out of the market, countries implement ‘anti-dumping duties’. These are fees levied on products that are imported below market rate. These fees increase the cost of imported goods and thus balance the playing field for local suppliers.

Which Products are Subject to Anti-dumping Duties?

Anti-dumping duties are levied on either specific products or groups of products, when imported from certain countries. Some products are more liable to be subject to anti-dumping duties than others. For example, solar panels and tiles are frequently subject to these duties.

To see a complete list of products currently subject to anti-dumping duties, visit the UK government’s trade tariff checker.

In addition, it’s important to stay informed on the general import regulations. Check here for a full list of goods that can and can’t be imported to the UK, helping you navigate the restrictions that could impact your imports.

How Does the Government Decide When To Implement Anti-Dumping Duties?

The government typically introduces anti-dumping duties in response to lobbying from local producers, accusing another nation of ‘dumping’ a product in the UK below market value. The government will then investigate the claims, and if it agrees that dumping is taking place, the levy will be applied.

Alternatively, sometimes anti-dumping duties are applied for political reasons, as part of a trade war. For example, China recently threatened to raise import duties on dairy products from the EU, in retaliation for the EU raising duties on Chinese electric vehicles.

Types of Anti-dumping Duty

There are several ways that anti-dumping duties can be imposed.

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The supplier pays a percentage of the product’s price as duty. Let’s look at an example.

A business wants to import 100 widgets. 100 widgets cost £500. If anti-dumping duty is 10% then we can calculate anti-dumping duty as follows.

£500 x 10% = £50.

Anti-dumping duty is £50.

Specific Duty

In this case, the duty is based on the quantity of the imported good rather than being directly linked to its market value. For example, £1 per kilogram of imported steel.

Specific duty is usually applied to products that are often combined with other products, making it difficult to calculate their value.

Fixed Duty

The product has a minimum price. Duty fees are added to the product until it reaches this price. Let’s use another example to illustrate this.

The minimum price for 100 widgets is £1100. A business imports 100 widgets for £500. We can calculate anti-dumping duty as follows.

£1100 – £500 = £600.

The business must pay £600 as anti-dumping duty.

Don’t Forget to Check UK Import Duties Might Apply

If you’re importing goods from China to the UK, it’s crucial to check the applicable import duties. The UK government has established tariffs that can apply to different goods, and these may vary depending on the product and its origin. Familiarizing yourself with these charges, including any potential anti-dumping duties, ensures that your business avoids unexpected expenses.

What Should Importers Do About Anti-Dumping Duties?

Before importing any good, it is a good idea to look up any taxes and duties due on that product. This includes anti-dumping duties. It is also important to keep on top of any updates to anti-dumping duties. That way, you can know immediately if a new duty is levied on a good that you import. In this scenario, you may be able to save money by switching to a supplier in another country.

Another option is to work with a sourcing agent such as Easy Imex. We will be able to suggest the most cost-effective supply chain for your business, factoring in anti-dumping duties and other costs.