A dumping/countervailing security may be imposed during an investigation in order to prevent material injury to an Australian industry occurring while the investigation continues and to ensure the protection of Commonwealth revenue. The security is in respect of any interim dumping duty (or interim countervailing duty) that may become payable at the completion of the investigation. Dumping/countervailing securities may be imposed no earlier than 60 days after the initiation of an investigation and only after the publication of a Preliminary Affirmative Determination.
Cash securities or bank guarantees are not required. However importers are required to lodge with the Department of Immigration and Border Protection a dumping security undertaking when the goods are entered for home consumption in Australia.
When lodging the dumping security undertaking form, the importer:
acknowledges that the Department of Immigration and Border Protection has the right to require and take securities under Section 42 of the Customs Act 1901 in respect of interim dumping duty and/or interim countervailing duty that may become payable under the Customs Tariff (Anti-Dumping) Act 1975; and
undertakes to pay to the Commonwealth any interim dumping duty and/or interim countervailing duty that becomes payable on goods entered under the security where a notice is published under Section 269TG(1) and/or Section 269TJ(1) of the Customs Act 1901 advising that the Minister has imposed anti-dumping measures.
How to enter goods subject to securities
If the goods are subject to provisional measures, a Security ID is required before submitting a Full Import Declaration.
To obtain a Security ID, importers are required to complete the dumping security undertaking form and submit it to email@example.com.
Once the Security ID has been issued, importers will be required to enter this ID into the Integrated Cargo System (ICS) ‘Security ID’ field (Tariff Line Create - Additional Information).
Please note that although ICS will show a security liability, importers will not be required to pay the dumping security amount prior to obtaining their goods.
The Department of Immigration and Border Protection has provided a document checklist here for applying for securities.
Conversion of securities
If, at the conclusion of an investigation, the Minister decides to publish a dumping duty notice and/or a countervailing duty notice, securities imposed during the investigation will be converted to interim dumping and/or countervailing duty.
Securities will be converted at the rate of duty applicable to the Minister’s dumping duty notice and/or countervailing duty notice up to the amount of the security. The amount of duty converted to interim dumping and/or countervailing duties cannot exceed the amount of the security taken.
When securities are converted to interim duty, securities are converted only for goods the subject of the dumping duty notice and/or countervailing duty notice that were exported to Australia on or after the date that the Commissioner made a Preliminary Affirmative Determination (PAD).
Consequently, securities taken for goods that were entered for home consumption on or after the date of imposition of the securities, but exported before the date of the PAD, will not be converted to interim duty and will be cancelled.
Where securities have ceased – goods on the water
For information surrounding goods on the water, please click here.