Anti-Dumping Law: Trap for the Unwary Importer?
November 20, 2009
The antidumping laws of the United States are designed to prevent foreign manufacturers from selling their merchandise to their United States customers for less than they sell them to their home country customers. U.S. companies who are buying from overseas suppliers, referred to herein as "importers," tend to view antidumping proceedings and antidumping orders as being of concern only to the foreign manufacturer, provided the duty amount they have to deposit is low enough to be acceptable to them.
This is not the case. Importers should immediately contact Varnum if they are importing from a foreign manufacturer who is involved in an antidumping procedure, or whose goods are subject to an antidumping duty order. Failure to understand the process and the potential consequences to the importer can be disastrous.
Basically, after having deposited duties at a modest level, importers may find themselves in the difficult position of actually owing a great deal more than they had deposited. A deposit at 4% can be trumped by an obligation to pay 25%, 50% or even more, on product previously imported and paid for. Importers may end up paying far more for product already previously imported, than they would have paid to purchase them from a United States supplier.
Contact your Varnum attorney for more information if you are importing from a foreign manufacturer which is involved in an antidumping proceeding or whose goods are subject to an antidumping duty order.