TRA reports initial findings on Turkish ironing boards
The Trade Remedies Authority (TRA) has today (26 April 2023) published its initial findings in its investigation into imports of ironing boards from Turkey.
The TRA investigated these imports in response to a request from a UK manufacturer, to assess whether ironing boards imported from Turkey are subsidised and are therefore being sold in the UK at unfairly low prices. This is the second new investigation (and the first dealing with subsidies) that the TRA has taken on after being set up as part of the UK’s international trade arrangements following EU exit. You can see the TRA’s report on its public file. Companies which may be affected by the recommendation can comment on the findings by 29 May 2023.
Investigating imports
The TRA has analysed information from importers and exporters of these goods, as well as data from UK producers. This is to find out whether the imports are being sold in the UK at unfairly low prices due to beneficial subsidies in their country of origin. The period of investigation is 1 January 2021 to 31 December 2021, while the injury period is 1 January 2018 to 31 December 2021.
The TRA’s initial conclusions
The TRA has concluded that the imports are unfairly subsidised and proposes to recommend measures to counter this. These would come in the form of an additional duty of 4.44% payable at the border. The TRA determines the tariff amount by assessing the value of the subsidies.
Provisional measures
The TRA is also recommending provisional measures to counter the imports while the case is completed. These have been set at 4.42% (for both non-cooperating and cooperating parties) and would apply if permanent measures are then imposed. The measures are a guarantee and can be in the form of a bank guarantee, bond or cash. They will be in place for up to four months or until the final measure is put in place. The decision to recommend provisional measures is published in a report on the TRA’s public file. You can also see the HMRC stop press notice which gives further detailed information for importers.
TRA Chief Executive Oliver Griffiths says: “We have been investigating whether imports of ironing boards from Turkey benefitting from state subsidies have harmed the UK industry. Our provisional finding is that subsidies have kept prices of the imported goods unfairly low causing injury to the British producer and so we’re intending to recommend a new tariff on ironing boards from Turkey.”
View further information on the TRA’s current case load, including its investigation into optical fibres, which is also being carried out in response to a request from UK businesses.
Background information
- The Trade Remedies Authority is the UK body that investigates whether new trade remedy measures are needed to counter unfair import practices and unforeseen surges of imports.
- UK industries concerned about imports have been able to submit applications for a new trade remedy measure since January 2021. These applications are considered by the TRA to see if there are grounds for an investigation.
- Countervailing measures are one of three trade policy tools to counter imports which are causing or threatening injury to domestic industry, the other two being anti-dumping and safeguard measures. Countervailing measures address imported goods which are being subsidised by foreign governments.
- When the TRA recommends a countervailing duty to be applied to a subsidy, the amount of duty specified will depend on the value of the subsidy. The TRA assesses all financial contributions from foreign authorities, either in the form of a monetary transfer or a transfer in kind. You can find out more about this by reading our guidance on subsidy investigations.