Anti-dumping duties paid upon import are said to be restricted from refund for reasons such as domestic industry protection. Even in this case, to what extent is a refund possible, and how is the refund amount calculated? Released

You accurately understand that since the anti-dumping duty paid upon import is levied for the purpose of protecting domestic industries, there are certain restrictions on tariff refunds for raw materials used in the production of exported goods.

These restrictions apply equally not only to anti-dumping duties but also to countervailing duties and retaliatory tariffs imposed to sanction countries that infringe upon our nation's trade interests. This is because these duties are levied as a type of flexible tariff, going beyond merely securing fiscal revenue, to protect domestic industries from unfair trade practices or to safeguard national trade interests. If such special duties were fully refunded, the original purpose of imposing the duties could be undermined, hence the restriction on refunds.

In that case, I will explain what portion is refundable and how the refund amount is calculated.

Refundable Portion:

Even if an imported item is subject to anti-dumping duties, not the entire tariff imposed on that item is non-refundable. The basic tariff amount (the tax amount corresponding to the effective tariff rate) that would have been imposed on the item if anti-dumping duties had not been applied is refundable. In other words, only the anti-dumping duty portion, which was additionally imposed to protect domestic industries from dumping, is restricted from being refunded.

Method for Calculating Refund Amount:

The refund amount is calculated using the 'Restriction Ratio'. This Restriction Ratio is calculated using the following formula:

Restriction Ratio = (Total tax amount after anti-dumping duties, etc. are applied - Tax amount of the item if anti-dumping duties, etc. were not applied) / Total tax amount after anti-dumping duties, etc. are applied

Here, the meaning of each term is as follows:

• Total tax amount after anti-dumping duties, etc. are applied: This is the total tariff amount you actually paid upon import, which is the sum of the basic tariff and the anti-dumping duty.
• Tax amount of the item if anti-dumping duties, etc. were not applied: This is the tariff amount calculated according to the basic tariff rate that would have been applied to the item if anti-dumping duties had not been imposed.

Using the 'Restriction Ratio' calculated this way, the actual 'Refund Rate' that can be refunded is determined, and the final refund amount is calculated as follows:

Refund Rate = 1 - Restriction Ratio

Final Refund Amount = (Total tariff amount paid for imported raw materials used in the manufacture of exported goods) × Refund Rate

In conclusion, if you export goods subject to anti-dumping duties and apply for a tariff refund, the anti-dumping duty portion imposed on those goods will be restricted from refund, but you can receive a refund for the general tariff portion that would have been paid if anti-dumping duties had not been imposed. This is to balance the tariff refund system, which supports the competitiveness of exporting companies, while also achieving the policy objective of protecting domestic industries.