ANTI-DUMPİNG PRACTICE IN TURKEY

In Turkey starting from 1984, import substitution policy was replaced by a liberal import policy and domestic markets were opened to foreign competition by gradual reduction of customs duties and abolition of restrictions.

One of the most important policy in the area of liberal import policy is anti-dumping. Anti-dumping is called as a price of a product which is lower than the normal value, in other words, export of a product which is the subject of consuming and also which is similar than the other has lower value than the comparable price in the country of origin. Namely, as a subject of import, anti-dumping is the ultimate difference between the prices that local producers provide and international producers provide. Anti-dumping can be as sporadic or predatory or persistent.

Every country uses some extra tools against anti-dumping like surtax because of the need to protect domestic industries from unfair trade practices.

Turkey enacted the first anti-dumping code in 1989 as the Legislation on Prevention of Unfair Competition in Importation, comprising of the Law No: 3577 and the Regulation which are related with this code.

In the Turkish anti-dumping system which is regulated to prevent local producers’ loss because of the ultimate difference has two separate bodies which are the “Board of Evaluation of Unfair Competition in Importation” (the Board) and the “Department of Dumping and Subsidy Investigation” (the Department).

The Board is an independent body consisting of 8 members. The Board is empowered to take decisions for the initiation of an investigation, acceptance of undertakings, termination of an investigation or imposition of anti-dumping duties.

Following the completion of the preliminary analysis by the department which is subordinated to the Prime Ministry Undersecretariat for Foreign Trade, Directorate General for Imports in 45 days maximum, the case is brought before the Board for the decision whether to initiate an investigation or not.

If the Board decides to initiate an investigation, a communiqué is published in the Official Gazette and the representative of the exporting country subject to investigation and other known interested parties are notified. The local producers who are injured because of import can apply for investigation.

During the course of the investigation, export price, actual or payable, and normal value are determined by using the methods described in the domestic regulation and the A-D Agreement and a non-confidential copy of the complaint and questionnaires are sent to known exporters, importers and producers. Questionnaires are to be responded within 30 days following the receipt of the questionnaires in 7 days. In cases in which any interested party refuses access to, or otherwise does not provide necessary information within a reasonable period or significantly impedes the investigation, preliminary and final determinations, affirmative or negative, may be made on the basis of the facts available.

An investigation shall normally be concluded within one year, but this period can be extended up to eighteen months in special circumstances.

The normal value is determined as the price actually paid or payable in the domestic market of the country of origin, or, in special circumstances, the comparable export price of the country subject to investigation to a third country, or the constructed value established by adding an appropriate profit margin to the cost of production of the product in the country of origin. The calculation of the dumping margin by comparing the export price and normal value at the same level of trade. In case where levels of trade differ, they are to be brought to the same level.

Provisional measures may be applied after the first 60 days of the investigation only if a preliminary affirmative determination has been made of dumping and consequent injury to a domestic industry; and if such measures are necessary to prevent the injury being caused during the investigation. Interested parties are informed of the decision of a provisional measure via a communiqué published in the Official Gazette.

The duration of provisional measures is 4 months, but this period may be extended up to 6 months upon request by exporters representing a significant percentage of the trade involved. Moreover, when the authorities decide that a duty lower than the dumping margin would be sufficient to remove injury, then these periods may be 6 and 9 months, respectively.

At the end of the investigation as a definite measure against anti-dumping, tax becomes effective. It is applied as tax or ad valorem(percentage of CIF) or specifically (on the basis of amount). Definite measure becomes operative after being published in the Official Gazette. These awards can be valid up to 5 years.

Definitive duties may be reviewed upon written application by any interested party, which submits positive information substantiating the need for a review, provided that at least one year has elapsed from the date of imposition of the definitive duty.

As a result of a review investigation carried out, the definitive duty in force may either be revoked or remain at the same amount or be increased or decreased.

About the taxes and provisional measures, the related importing and exporting country firms has to prepare an effective defense during the investigation process. Altough this defense because of the tax and measures, a legal action has to be taken aganist administrative authorities and motion to stay has to be claimed.

Related countries may solve it by using WTO panel or arbitration system instead of filing a suit depending on the municipal law.

As it mentioned Turkish Authorities are taking measures and practicing them about anti-dumping in the issue of import. Especially, nowadays tax aganist anti-dumping is being establishied on imports from China. We suggest that import dealers should take into account the anti-dumping taxes when they are finding the total cost.