Guidance

Transition reviews into anti-dumping and countervailing measures

Updated 25 April 2024

Legal framework

Primary legislation in the Taxation (Cross-Border Trade) Act 2018 (the Taxation Act)

Section 51 of the Taxation Act and Section 56 of the Taxation Act include powers to transition EU trade remedy measures into UK law.

Secondary legislation in the Trade Remedies (Dumping and Subsidisation) Regulations (the D&S Regs)

Part 12 of the D&S Regs makes provision for some EU anti-dumping and countervailing trade remedies to take effect as if they were UK-specific when the UK leaves the EU. It also provides for a transition review to be carried out to determine whether each measure is appropriate for the UK.

Introduction to transition reviews on EU measures

The UK chose to maintain some trade remedy measures once outside the EU’s Common External Tariff. The Department for Business and Trade (DBT) identified which measures may be of interest to the UK following a call for evidence. For each of these measures, the Secretary of State published a Determination Notice, giving effect to the corresponding EU trade remedies measure, and allowing us to conduct transition reviews to determine if these measures should be varied or revoked in the UK.

Considerations in an anti-dumping transition review

We establish whether the dumping of the relevant goods in the UK market would be likely to continue or recur if the anti-dumping measures were no longer applied to these goods. We also assess whether UK industry would be adversely affected if the anti-dumping measure no longer applied.

Considerations in a subsidy transition review

We establish whether imports of the subsidised goods into the UK would be likely to continue or recur if the countervailing measures were no longer applied to these goods. We also assess whether UK industry would be adversely affected if the countervailing measure no longer applied.

Transition review process

Initiation

Transition reviews are not applied for by interested parties. We initiate transition reviews before the measure is due to expire. We undertake them in the most appropriate order to ensure that UK industries remain protected from unfair trade practices.

Before we initiate a transition review, we notify the Secretary of State. We then inform the governments of the relevant foreign countries or territories subject to the transition review and, in subsidy cases only, invite them to participate in consultations.

When we begin a new transition review, we publish a Notice of Initiation on our Trade Remedies Service. The Notice of Initiation sets out the scope of the review, including:

• the description of the goods subject to the review to which the anti-dumping or countervailing amount applies in the transitioned UK measure
• the period of investigation to assess likelihood of dumped or subsidised imports
• in subsidy cases only: the subsidies subject to the review

The subsequent conduct of transition reviews follows similar stages as set out in our TRA’s investigation process guidance into new measures. We invite interested parties and contributors to register on the case and provide us with relevant information through questionnaires or other submissions. We will assess whether information provided by parties and any other material information from secondary sources is verifiable. We will use the information for our assessments and calculations as appropriate.

Analysis

When conducting a transition review, we must establish whether imports into the UK of dumped or subsidised goods subject to review would be likely to continue or recur if the anti-dumping or countervailing measures were no longer applied to these goods.

We also must assess whether injury to the UK industry in the like goods would be likely to continue or recur if the measures were no longer applied.

We may consider whether it is appropriate to recalculate the anti-dumping or the countervailing duty.

We may also consider whether to amend the description of the goods in scope of the measure.

Likelihood assessments

To determine whether dumping is likely to continue or recur, we will make a holistic assessment of relevant factors and indicators. The assessment will have regard to all relevant information provided by interested parties and contributors, for example through questionnaire responses or other submissions, and obtained from secondary sources.

We will carry out this assessment on a case-by-case basis. The factors that we may consider in dumping and subsidy likelihood assessments include:

• whether there is evidence that the relevant goods are being imported into the UK
• subsidy programmes in the exporting country
• the exporters’ current and potential capacity to export the goods
• the exporters’ inventory of the relevant goods
• the exporters’ production levels and ability to increase production of the relevant goods
• how attractive the UK market is to exporters
• conditions in the exporters’ domestic market
• whether there is evidence that exporters have previously or habitually circumvented or absorbed the effects of trade remedy measures and continued to export their goods at the same prices

The factors that we may consider in injury likelihood assessments include:

• the current state of the UK industry
• undercutting of UK industry
• current and projected market conditions in domestic and international markets for the relevant goods

Recalculating anti-dumping and countervailing duties

When we are carrying out transition reviews, we may consider whether it is appropriate to vary the anti-dumping or countervailing duty. We may only make a recommendation to vary the duties if we are satisfied that the anti-dumping or countervailing duty is not more than the amount adequate to prevent or remove injury.

If we recalculate dumping margins or subsidy amounts and injury margins, we will follow the methodology set out in our Determining dumping and anti-dumping duties , Determining subsidies and countervailing duties, and Determining injury and causation guidance.

Amending the scope of the review

In some cases, we may find the original scope as published in the Notice of Determination is not appropriate for a UK-specific measure.

In deciding whether to revise the scope of a transition review, we will consider whether the proposed revision may prejudice the interests of any interested party or contributor, and we will assess whether making the proposed revision would prevent us from completing the review expeditiously.

Economic Interest Test

If we establish that measures are needed to protect UK industry, we will assess whether such measures are in the economic interest of the UK.

If the measures are deemed to not be in the economic interest, we will assess whether we can recommend alternative measures that meet the economic interest test.

Further information on how we apply the economic interest test can be found in our Applying the economic interest test guidance.

Making a recommendation

Once we have concluded whether measures are needed and, if so, whether these are in the economic interest, we will record our findings in a report, our Statement of Essential Facts. Interested parties and contributors are invited to provide comments which we will consider before making our Final Recommendation to the Secretary of State.

The Secretary of State may accept or reject our recommendation. They may also ask us to reassess our recommendation if there is relevant information that we did not take into account or if exceptional circumstances make the request appropriate. We may then make a revised recommendation.

The Secretary of State may also take a different decision if they find that an alternative measure is in the public interest. In doing so, they may ask us to provide further advice, information or other support to allow them to make their decision.

Outcome

The possible outcomes of a transition review are:

• the remedy is revoked
• the remedy is extended at the same level by no more than 5 years
• the remedy is extended at a different level by no more than 5 years

Repayment of excess duty

If we conclude that the measure should be revoked or its level should be reduced, it is possible that importers will have paid too much duty on these goods once the Secretary of State has issued the taxation notice making the measure specific to the UK. In these cases, importers may be able to claim back the extra duty from HMRC providing it was paid in the period after the UK left the Common External Tariff.