News date: 21 May 2019
The team of international trade practice of Ilyashev & Partners law firm led by partner Olena Omelchenko has successfully protected the interests of Ukrainian cement producers Private JSC Dyckerhoff Cement Ukraine, Private JSC Heidelbergcement Ukraine, PJSC Podilskyi Cement (CRH Ukraine group of companies) and Private JSC Ivano-Frankivsk Cement in an anti-dumping investigation regarding the import to Ukraine of cement originating in the Russian Federation, the Republic of Belarus and the Republic of Moldova.
At the meeting on May 21, 2019 the Interdepartmental Commission on International Trade decided to apply the final anti-dumping duties for five years on imports of cement into Ukraine, in particular cement clinkers and Portland cement, which are classified by UKT FEA codes 2523 10 00 00, 2523 29 00 00.
The rate of the final antidumping duty for the import of cement to Ukraine is set at:
– 57.03% in respect of imports of Portland cement and clinker originating in the Republic of Belarus;
– 94.46% in respect of import of Portland cement and clinker originating in the Republic of Moldova;
– 114.95% in respect of import of Portland cement and clinker originating in the Russian Federation.
The application of such high rates of duty on imports from the three countries at the same time is an extremely rare result for an anti-dumping investigation.
“Such a high, in fact, prohibitive, rate of duties, once again confirms that the Commission has established the fact of violation of competition by foreign manufacturers” – said Olena Omelchenko – “Our client is fully satisfied with this decision. We are pleased that the best world practices for calculating dumping margins are introduced in Ukraine in order to protect the national producer”.
The final anti-dumping duty will be calculated as a percentage of the customs value of the goods and will be levied in addition to the import duty. The decision comes into force in 30 days from the date of publication of the decision in the Uryadovy Courier newspaper.
We note in particular that the Interdepartmental Commission rejected the price undertaking offers of Lafarge Cement (Moldova) SA, CJSC Oskolcement and CJSC Eurocement Trade to cease dumping imports of cement to Ukraine.
This decision will contribute to the establishment of fair competition in the cement market of Ukraine, is going to facilitate an increase in the production and sales of products by national producers, may foster job creation, and shall promote the maintenance of existing and an increase in future investments.
It should be reminded that the decision to initiate an anti-dumping investigation on the results of the consideration of the complaint prepared on behalf of the Ukrainian national commodity producer by the international trade team of Ilyashev & Partners Law Firm was made by the Interdepartmental Commission on July 4, 2018. The anti-dumping investigation lasted 10 months.