Anti-Dumping Duty

There is a practice that some importers use that can be disruptive to the business world. Known as ‘dumping’, this means that the goods in question have been sold less than the price of the home market or sold at less than the cost to make it. Some businesses follow this questionable practice as a way to take hold of a market with their lower cost product. But there are many unethical questions raised in ‘dumping’ from professionals. Many people believe that when a foreign company lowers their price below the cost of production, it hurts the fair market value. Domestic businesses might suffer and there might be job loss.

Freight forwarders and everyone in the logistics industry can play a part in preventing this practice. The US Department of Commerce levies a fine on these commodities that are 'dumped' in the form of a duty that shippers pay in addition to their ocean freight rates. These types of duties are only imposed on those foreign entities that lower their price this way. Some people say that the duty helps keep the market more competitive.

The problem with anti-dumping duties is that a nation can impose it on any foreign shipper, to help out the domestic businesses. And if that happens, then the cargo being exported is less attractive because of the duty. It is difficult sometimes to determine exactly what is a fair market price for a commodity, as many professional have different opinions on this specific matter.