The European Commission has published an official note in its gazette related to the potential effects of the combination of existing anti-dumping (AD) or anti-subsidy (AS) duties with safeguard tariffs, Kallanish notes.
In the note the EC explains that in case tariff-free quotas for products already hit by AD or AS duties are exhausted, the effect of the combined measures “… may lead to a greater effect than desirable”. As a result the EC proposes that if AD or AS duties are less than 25% (the rate of safeguard tariffs), they will not be collected, if the duties are higher, on the other hand, only the difference from the 25% rate will be charged.
“Whilst there is some uncertainty as to if and when the respective tariff-rate quotas would be exhausted, it is possible that imports of those steel product categories which are subject to anti-dumping or anti-subsidy measures would also become subject to the payment of a safeguard duty,” the note explains.
The EC calculates that there are 18 existing AD and AS measures in place on products also included in the new safeguard system.
All interested parties are invited to submit their comments on this proposal by 9 May 2019.