This guide will explain what is dumping, what is not considered dumped imports, how the dumping rate is determined, etc.
Goods are considered dumped imports when their import price into Israel is lower than their selling price by the manufacturer abroad, in a similar level of trade (in the Law: Normal Price). The export price is the price Israeli importers pay for the goods.
The normal price is the goods’ selling price in the manufacturing country. If the export price is lower than the normal price (after adjustments made to ensure a fair price comparison), that is considered dumped import.
What isn’t considered dumping?
The mere existence of a low import price does not constitute cause for filing a dumping complaint. Cheap imports whose price is lower than domestic market prices or prices of import from elsewhere, but is not lower than the normal price, are not considered dumped imports.
If the dumping rate calculated for the complaint is lower than 2%, the import will not be considered dumped import.
Is dumping legal?
Selling for dumping prices is not, in itself, prohibited by law, and neither is it prohibited by international agreements. If the dumped import has caused or may cause injury, it is viewed as a violation of the fair-trade rules, thus allowing the injured country to protect itself from injury by way of imposing an import duty. The Law regulating the imposition of anti-dumping duties is the Trade Levies Law, 5751-1991, which came into effect on 01/01/1991. This Law supersedes the Anti-dumping Law, enacted in 1978.
Most provisions of Israeli legislation in these matters are based on commonly-accepted principles from international trade agreements, and are similar to national legislation of most of Israel’s trade partners, including the main ones – the EU and the USA.
While the importance of free trade is widely recognized, there is also extensive global understanding that free trade must be fair. Based on this understanding, the 130 countries that are members of the WTO have agreed to take measures against dumping. The import liberalization program instituted in Israel, and the resulting exposure, have accelerated the enactment of the Trade Levies Law in 1991.
