Anti-dumping & transhipping
- Dumping is when a country or company export goods into another market (like the EU) at a price deemed as lower than their domestic market price or the normal market value.
- Transhipping is when goods are moved via a third party country to change the country of origin, with the specific purpose of avoiding anti-dumping duties.
These practises have presented a huge challenge within the fastenings industry. The high levels of import duties to which have been imposed on the movement of fasteners has led to intense scrutiny from Customs.
The result of getting this wrong can be very expensive; we need to keep fully up to date on the latest rules and legislation. It is also very important that we have confidence in the suppliers we are trading with, and that they are being honest with us. The penalties are the responsibility of the importer and the fines for non-compliance are substantial and can be as much as 74% of the value of the goods.
Across the Group when importing or exporting goods we use custom codes or harmonised commodity descriptions - this is an international product vocabulary developed by the World Customs Organisation (WCO).
This system is used by more than 200 countries; its main purposes being internal taxes, trade policies, rules of country of origin and applying duties. For our European sites a full review of these codes and the links to our internal product groups is underway to improve our current process and reduce our exposure to risk. This is a very time consuming task but there is no avoiding it.
Investment in new people, training and time spent with the TR sites on these subjects is vital.
This is not just about controls and systems, but is also about creating opportunities for new business and supporting colleagues on a global basis.