Circumventing anti-dumping measures

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Traders will often try to circumvent or bypass anti-dumping and anti-subsidy measures, particularly when the duties are high. The higher the duties, the bigger the commercial benefit, and the bigger the temptation to circumvent paying them.

In a case decided on 16 January 2014, the EU Court of First Instance had to rule, for the first time, on a case concerning circumvention. The court found that specific measures preventing BP North America from shipping diluted biodiesel to the EU in avoidance of anti-dumping duties on concentrated biodiesel were legal.

The case dates back to July 2009. Then, the EU adopted two regulations imposing anti-dumping and anti-subsidy duties on imports into the EU of biodiesel originating in the US. Biodiesel is shipped in highly concentrated form and then closer to the point of consumption it is diluted with normal diesel to reach the level required for motorcar engines. In the EU, this is usually a concentration of five per cent or seven per cent biodiesel in normal diesel…

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