EU ANTI-DUMPING AND TRADE DEFENCE MEASURES

India Monitor and Commercial Guide

This guide covers EU anti-dumping duties (ADD), countervailing duties (CVD), and safeguard measures applicable to Indian exports. It explains how these measures work, which Indian products are currently affected, and what Indian exporters and EU importers must do to comply. Anti-dumping duties are separate from — and in addition to — MFN import duties and are not reduced by FTA preferences.

1. What Are Anti-Dumping Duties?

Anti-dumping duties (ADD) are additional import duties imposed by the EU on goods imported from a specific country at a price below their "normal value" — i.e. the price at which similar goods are sold in the exporting country's home market. The EU imposes ADD to protect EU producers from unfair competition arising from dumped imports.

ADD is authorised by WTO Anti-Dumping Agreement and governed in the EU by Regulation (EU) 2016/1036 (the EU Anti-Dumping Regulation). ADD applies to:

A specific product, identified by CN code.

Imports from a specific country of origin.

Often at differentiated rates for different exporters from the same country — individual exporter rates and an "all others" rate.

Critical point: ADD is charged in addition to the standard MFN import duty. An Indian product subject to 6.5% MFN duty and 15% ADD pays a total of 21.5% on importation. ADD is NOT reduced by GSP or FTA preferences — preferential rates apply to MFN duty only. This makes ADD potentially the more significant cost burden for affected products.

2. How EU Anti-Dumping Investigations Work

EU industry (representing at least 25% of EU production of the affected product) files a complaint with the European Commission's DG Trade.

The Commission initiates an investigation — published in the Official Journal of the EU. The investigation covers: (a) whether dumping is occurring; (b) whether EU industry is suffering material injury; and (c) whether there is a causal link between dumping and injury.

The investigation typically lasts 12–14 months. During the investigation, provisional ADD may be imposed after approximately 6–9 months.

Exporters, importers, EU producers, and other interested parties may register as interested parties and submit questionnaire responses, evidence, and arguments.

If the investigation confirms dumping and injury, definitive ADD is imposed by EU Council Regulation for typically five years.

After five years, interested parties may request an "expiry review" — if ADD is not renewed, it lapses. If renewed, it typically continues for another five years.

Indian exporters can apply for a "new exporter review" if they did not export during the original investigation period — this may lead to an individual ADD rate lower than the "all others" rate.

3. EU Countervailing Duties (CVD) on Indian Products

Countervailing duties (CVD) are imposed on subsidised imports — where the exporting country government provides subsidies that give an unfair advantage to its exporters. The EU has imposed CVD on several Indian products where DGFT incentive schemes (MEIS, RoDTEP predecessors, export promotion schemes) were found to constitute actionable subsidies under WTO SCM Agreement rules.

Key distinction: The EU has challenged several Indian export promotion schemes at the WTO (DS541 — India export schemes dispute). Some legacy MEIS/MEIS-equivalent benefits may still be subject to CVD even if the underlying scheme has been reformed. EU importers of affected Indian products should check the current CVD status with their customs agent.

4. Current and Recent EU Trade Defence Measures on Indian Products

The following table summarises significant EU trade defence measures on Indian products. This is not exhaustive — always verify current measures on the EU TARIC system or the European Commission's trade defence instrument database.

IMPORTANT: Always verify the current status, applicable CN codes, and exact ADD rates on the EU TARIC system (ec.europa.eu/taxation_customs/dds2/taric) before quoting prices to EU buyers. ADD rates change following reviews, and new measures may have been imposed after the date of this document.

5. Impact on Commercial Pricing for India-EU Trade

ADD fundamentally changes the economics of a commercial transaction. For EU buyers:

ADD is payable by the EU importer on import — it is a direct cost that increases the landed cost of Indian goods.

ADD is not usually foreseeable by the exporter unless they monitor EU trade defence developments.

ADD can make Indian goods commercially unviable in the EU if the ADD rate is high enough to eliminate the competitive price advantage.

For Indian exporters of ADD-affected products:

Inform EU buyers upfront about any applicable ADD — failure to do so is a common source of commercial disputes.

Consider whether EU buyers are absorbing the ADD (reducing margin) or passing it on to end customers (reducing competitiveness).

Explore whether an individual exporter-specific rate can be obtained through a new exporter review or review of the original investigation.

Consider whether the product can be modified (e.g. change of specification, HS code, or manufacturing process) to fall outside the ADD scope — but only with proper legal advice to ensure this is genuine and not circumvention.

6. Circumvention of Anti-Dumping Duties

Circumvention of ADD is a serious compliance risk. The EU can open anti-circumvention investigations under Article 13 of Regulation (EU) 2016/1036 where it suspects that ADD is being avoided through:

Minor modification of the product to shift it out of the covered CN code scope.

Assembly in a third country of components from the country subject to ADD.

Consignment through a third country with a change of certificate of origin.

If circumvention is found, the EU can extend ADD to cover the modified product, the third country, or the components — and can impose the duty retroactively. Indian exporters should not take any action designed to circumvent ADD without taking specific legal advice. Legitimate restructuring of production or supply chains (e.g. genuine manufacturing in a third country) is different from circumvention but requires careful documentation.

7. Safeguard Measures — Steel and Other Products

In addition to ADD and CVD, the EU has imposed global safeguard measures on certain steel products (Implementing Regulation (EU) 2019/159 and renewals). These measures apply to imports from all WTO members (including India) above a tariff rate quota (TRQ). Imports within the TRQ enter at the standard MFN rate; imports above the TRQ pay an additional 25% safeguard duty.

Steel product categories covered by EU safeguard TRQs include: hot-rolled flat products; cold-rolled flat products; metallic coated flat products; organic coated flat products; tin mill products; non-alloy and alloy quarto plates; structural sections; rebar; railway material; wire rod; hollow sections; seamless tubes; large welded tubes; other welded tubes; and others. Each category has a country-specific or residual TRQ allocation.

Indian steel exporters must monitor their product category's TRQ utilisation — once the TRQ is exhausted for a quarter, all further imports in that category pay the 25% safeguard duty. TRQ utilisation data is published by the European Commission quarterly.

8. Anti-Dumping Duty Compliance Checklist

Doc 54 — EU Anti-Dumping and Trade Defence Measures: India Monitor — Neutral Template