Anti-dumping proceedings in Turkey

anti-dumping proceedings in Turkey
anti-dumping lawyers in Turkey

Dear readers of our web site! Our professional lawyers are specialised on representing the legal interests of foreign companies in Turkey, so we know very well the peculiarities of international trade. One of the problems that we increasingly come across is anti-dumping investigations or anti-dumping complaints filed by local manufacturers in Turkey against foreign companies, exporting similar goods to our country.

What is the sequence of actions in such situation and how to prepare the proper grounds for legal protection and avoid the application of anti-dumping measures in respect of exported goods? We will try to answer these questions, using the example of the anti-dumping investigation, which ended successfully for the foreign company due to its legal awareness and deliberate actions.

Turkish Ministry of Economy received an official complaint concerning dump import in respect of a good X which was imported from Country Y. Number of main exporters of the product to Turkey-4. The Summary of anti-dumping investigation, including information which is not limited by principles of privacy was sent to the embassy of the exporter country and there was a period of 37 defined for the manufacturer to submit written arguments for legal defence and the responses to the questions on the form. (Exporting companies have the right to request an additional period to provide the necessary information).

Later on, the final report, completed according to the results of the anti-dumping investigation was sent either to the embassy of the country, or to headquarters of the exporter in Turkey. Similarly, there was the limited period of time determined for providing written rebuttal in order to protect the legal interests of exporting company. Therefore, the written rebuttal is usually provided by the exporter in both cases.

The comparison of selling prices for the product in the home country and its export prices to Turkey has been takes as a basis in order to calculate the dumping margin. The price of the goods right after leaving the storehouse in the home court of exporter was considered to be prime cost of the product. However, in this example, a foreign company subsequently agreed to cooperate with the Turkish Ministry of economy, and agreed to perform the additional investigation in the home country providing all necessary financial statements. After exploring such indicators as volume of sales, general administrative expenses, financing costs and taking into consideration the average trading margin the normal value of the product has been finally calculated. (Sometimes the normal value is calculated according the prices of same goods exported to other countries, besides Turkey). The export price to Turkey is considered to be cost of the goods purchased by Turkish firms directly from the exporter. In this example, a very strong argument have been used for protection the exporter's rights. According to the fact that the hedging futures contracts are widely spread in the home country of the exporter, the calculation of current prices for the product of the exporter country which determine the dumping margin was not correct. (An important nuance is that two written rebuttals for defense of the company's legal interests, which we mentioned above must not contradict each other and be well-drafted.)

Even before the anti-dumping investigation, the cost and consumed amount of X goods exported to Turkey had increased (from 37% to 48%), therefore, the share of the exporter on Turkish market had also naturally increased. Another argument used in favour of the exporter was based on the grounds that the reduction in the market shares of local manufacturers happened due to the special conditions in Turkish Economy and not connected with the activity of exporter. Due to all the defence applications and information the provided in time, using powerful arguments and legal grounds in favor of the exporter, it was possible to achieve very little anti-dumping measures that minimally affected the competitive price of the foreign goods in Turkey.

The number of anti-dumping investigations in Turkey is growing each year, this topic is very broad, our specialists have major experience in this field and can provide our foreign clients with expert assistance and legal advice.