How anti-dumping measures are applied in public procurement. Dumping and price discrimination - pros and cons

Anti-dumping measures are applied when making purchases that are carried out by competitive methods. Their goal is to prevent dumping, i.e. artificial reduction of the final price of the contract by 25% or more. Such discounts are fraught with restriction of competition by unscrupulous participants, as well as the risk for customers to receive a low-quality product or service.

Of course, there are cases when even honest suppliers can bring down the price even below the cost, for example, for the sake of entering the market. So they look forward to promising work. But, as practice shows, more often such schemes are aimed specifically at eliminating competitors.

As a precautionary measure, the winning bidder either provides an increased or proof of good faith. In some cases, he may be required to justify the final cost.

Differences in 44-FZ and 223-FZ

If dumping manifested itself in time, the winner must confirm honest intentions with documents, attaching them to the signed contract. Otherwise, it may end up in .

If increased security is chosen, the participant is obliged to present it before concluding the contract.

Anti-dumping measures under 223 FZ are applied somewhat differently. The text of the law does not mention them. However, Part 2 of Art. 2 223-FZ gives the Regulations on Procurement the right to regulate all procurement activities of the customer, including the preparatory stages. From this we can conclude that the customer has the right to introduce his own rules regarding the fight against dumping. They may be the same as in the law on the contract system, or different.

How to apply

When anti-dumping measures 44 FZ are applied, the contract performance security increases by 1.5 times compared to that specified in the documentation, if the NMTsK is higher than 15 million rubles. With NMTsK less than or equal to 15 million rubles. the participant, at his choice, provides either one and a half security, or documents confirming good faith.

It is important to note that when purchasing scientific, design or technological works through a competition, the customer can evaluate applications with a normal decrease (up to 25%) according to one criteria, and with dumping - according to others (parts 7 and 8 of article 37).

Also, if food, fuel, items for emergency and emergency medical care are purchased, then the participant with the dumping offer is obliged to provide the customer with a price justification. For these purposes, you can use:

1. Warranty letter from the manufacturer of the product.
2. Documentary confirmation of the availability of goods.
3. Other papers confirming the possibility of delivery.

When anti-dumping measures are not applied

First, anti-dumping measures under 44 FZ or do not affect. That is, during such procedures, you can greatly reduce the price without negative consequences.

Secondly, the rules under consideration are not applicable to procurement, where it is impossible to determine the final volume of spare parts, services or works (), since not only the NMTsK is reduced, but also the price of a unit of production (letter of the Ministry of Economic Development No. D28i-3262 dated 12/13/2016).

Thirdly, they do not apply to the purchase of medicines, provided that the offer of the participant should not be lower than the maximum selling price of the goods by 25% or more (part 12 of article 37).

The word dumping in English letters (transliteration) - dumping

The word dumping consists of 7 letters: g d e and m n p

The meaning of the word dumping. What is dumping?

DUMPING Selling goods in a foreign country at prices that local producers consider unreasonably low. Dumping means selling goods at lower prices...

Raizberg B.A. Modern economic dictionary. — 1999

Dumping - 1. The situation when firms sell goods abroad at prices below costs or at a price lower than in the domestic market (interpretation from the position of the exporting country); 2.

slovar-lopatnikov.ru

DUMPING - the sale of goods in the foreign and domestic markets at artificially low prices, lower than average retail prices, and sometimes lower than the cost (production and distribution costs).

Raizberg B., Lozovsky L., Starodubtseva E. Modern Economic Dictionary

dumping syndrome

DUMPING SYNDROME occurs in patients who have undergone extensive resection of the stomach, especially in the Billroth-II modification. Allocate early and late dumping syndrome.

Dumping syndrome (from the English dumping - dumping), dumping syndrome, agastric asthenia, a painful condition that occurs in some patients after partial or complete removal of the stomach ...

TSB. - 1969-1978

DUMPING SYNDROME (dumping syndrome) - a series of symptoms that occur after gastric surgery, especially after gastrectomy. After eating (especially rich in carbohydrates), the patient experiences weakness and dizziness, turns pale ...

DUMPING COMMODITY

DUMPING COMMODITY - export of goods at reduced prices, i.e. below domestic market prices. One of the means of struggle for sales markets. According to the GATT rules, COMMODITY DUMPING occurs when goods of one country are sold on the market of another at a price lower than ...

Financial dictionary. — 1999

Dumping currency

DUMPING CURRENCY (eng. Currency dumping) - mass export of goods at prices below the world average, associated with lagging behind the inflation rate from the depreciation of the exchange rate, mainly in order to force out competitors in foreign markets.

Financial and Credit Encyclopedic Dictionary / Ed. ed. A.G. Gryaznova.

What is price dumping in small and medium businesses

Currency dumping - the export of goods at bargain prices (below market prices) due to a decrease in the exchange rate of the exporter's country's currency. For D. century. characteristic difference between high domestic and low export prices.

Terminological dictionary of a librarian on socio-economic topics. - St. Petersburg: RNB, 2011

Dumping Currency - eng. currency dumping increase in the export of goods at reduced prices due to the depreciation of the national currency, with a slight decrease in purchasing power within the country.

Dictionary of business terms. — 2001

DUMPING

DUMPING - carried out to oust competitors and capture foreign markets for the export of goods from the country at lower prices than prices within the country or on the world market (artificial lowering of prices even below cost is possible) ...

Currency dumping

CURRENCY DUMPING CURRENCY DUMPING - the export of goods at bargain prices (below market prices) due to a decrease in the exchange rate of the exporting country's currency. The exporter compensates for losses in prices by exchanging the proceeds of a more stable foreign currency for his ...

Glossary of financial terms

Glossary of financial terms

Currency dumping - the export of goods at prices below market prices due to a decrease in the exchange rate of the exporting country's currency. Exporters, purchasing goods at low domestic prices, sell them at dumping prices on the foreign market for hard currency ...

Anti-dumping duty

ANTI-DUMPING DUTIES - duties imposed on goods imported into the country using dumping, i.e. lowering the price of a commodity in comparison with its normal value.

Foreign Economic Explanatory Dictionary

Anti-dumping duty - Anti-dumping duty - an additional customs duty levied on imported goods, in respect of which it is established that they are sold for export at prices below the "normal value" of these goods. The Code establishes that an anti-dumping duty can be imposed only after establishing the fact dumping and determining that dumping is detrimental to national production in…

ANTI-DUMPING DUTY An ANTI-DUMPING duty is an additional import duty imposed on goods exported at prices below the normal world market prices or domestic prices of the importing country.

Glossary of financial terms

Dumping, selling at bargain prices

Dumping, selling at bargain prices International finance, selling goods abroad at a price below cost in order to get rid of surpluses of goods or in order to fight foreign competitors.

Financial and investment dictionary. — 2002

CURRENCY DUMPING

CURRENCY DUMPING - expansion of exports at reduced prices; possible under the condition that the degree of depreciation of the national currency exceeds the corresponding indicator of its purchasing power within the country.

Explanatory Dictionary of Economic Terms

Material damage from dumping

Material damage from dumping (Dumping damage) - (usually assessed by industry) - the deterioration of the situation of the economy sector, which occurred as a result of dumped imports (see Dumping) or subsidized imports and is expressed, in particular ...

slovar-lopatnikov.ru

Russian language

Dumping/.

Morphemic spelling dictionary. - 2002

Usage examples for dumping

But dumping is quite possible, since the competition between tour operators is huge.

He never explained why society should consider Chubais-style privatization dumping an achievement.

Dumping must be established, defined.

But this dumping will not last very long.

What is anti-dumping in simple words

In the absence of the possibility of a detailed analysis, you can navigate the average indicators. All such calculations, as a rule, are carried out by customs or antimonopoly services.

• Obvious damage to the functioning of local companies and the economy of the region or country as a whole.

In accordance with the recommendations proposed by the anti-dumping committee, its existence simultaneously confirms the presence of these two facts. If they are established, there are grounds for initiating an investigation, which takes place with strict observance of the conditions. Investigation procedure An application is submitted to the Antimonopoly Committee listing the real facts of the damage caused or the creation of an obstacle to the conduct of activities. At the same time, calculations of an adequate price and comments on the percentage of dumped products on the market are given.

Dumping and dumping price what is it and what is it used for

Given the spread of trade relations, there are measures to prevent dumping and its consequences, developed and approved at the international level. The first precedent for dialogue on an international scale was set in 1947, during the agreement on tariffs and trade.

AttentionSubsequent agreements led to the tightening of control measures and all of them were included in the International Dumping Agreement, signed after the creation of the WTO. As a result of all the activities, a universal classification was adopted and a number of signs and consequences of dumping were identified:

• The price set for the product is significantly and clearly lower than that of representatives of other local companies.

At the same time, it is important to take into account the components of the price, such as taxes, expenses, cost, average profit.

Price dumping what is it in simple words and how to deal with it

• evidence of dumping

• presence of material damage
• evidence of a relationship between them.

Actually, it is on the transfer from the EXW basis to the CIP that a company accused of dumping can inflate costs and bring its own evidence to defend its interests in its competent authority. But on the basis of materials on the procedural component, the competent (state) body can decide:

• file an application with the WTO dispute settlement body
• and/or introduce retaliatory measures

Dispute resolution will already be a substantive component.

As for retaliatory measures, they can be introduced even before the proceedings in the WTO dispute settlement body (which take from one to several years).

Dumping is the concept of dumping, its types and consequences

This is especially evident in the service market, whose providers, by lowering prices below the real level, are trying to increase their market share. This phenomenon, taking on a systemic character, hinders the development of both one industry and the entire market of homogeneous services as a whole.
Within the framework of Article VI of the GATT and the Agreement on the Application of Article VI of the GATT 1994 (anti-dumping), both the definition of dumping and the methods of combating it (through the introduction of anti-dumping duties) are given. Thus, under article VI of the GATT, dumping in international trade is understood as the sale of goods at a price below the normal value.

At the same time, the normal value of the goods is understood as such a value of the goods, which will not be lower than the price of a similar product in the domestic market.

What is dumping: types, examples and how to deal with it

Dumping is required solely to compete for the market. By lowering prices, you can quickly increase turnover and generate revenue.

As a rule, a company lowers the price of a product only when it enters the market and wants to attract a buyer. Such beginners are even ready to work in the red today in order to get a good income tomorrow.

Some companies cut prices in order to drive out a competitor. The thing is that not everyone can withstand price races and simply leave the market so as not to lose profits.

From the perspective of the consumer, market dumping is an opportunity for him to save his own money and buy goods at an attractive price. As for the manufacturer, artificial price reduction is prohibited at the state level.

What is dumping

The only thing that companies have to do is keep strict records and do everything to make a profit. Price reduction to participate in the auction. This form of dumping must be singled out separately.

It's no secret that many suppliers, in order to win, sometimes lower the price below cost. After winning, the work is left unfulfilled or provided of inadequate quality.

To prevent this from happening, Federal Law 44 was adopted at the state level, which defines ways to combat dumping and establishes punishment for a manufacturer who has violated the law and deliberately reduced the price of their products. All manufacturers that participate in the auction undergo a rigorous check.

Dumping

1. The emergence and development of a new product on the market that was previously unknown to anyone;
2. Attraction of new clients;
3. Dumping does not imply additional resources, which means that they can be used to promote products;
4. Dumping does not need additional funding.

1. As a result of lower pricing policy, profitability decreases;
2. The professional community is not on the side of companies that play with prices;
3. Some customers may refuse goods at a low cost. For many, price reflects quality.

How to deal with dumping It is worth noting once again that dumping competitors is a forced measure that companies use only in an emergency.

Dumping - what is it? definition, meaning, translation

Grab a piece In difficult times, small business owners have to dodge to provide a current account with cash receipts. Analyzing purchases under 44-FZ over the past year, there is a noticeable trend towards a decrease in prices by 50-70% for the SMP organization. As a rule, small young organizations with a turnover of up to 30 million a year are dumping. Feeding shoppers With a saturated market, the promise that it could be even cheaper than it is now attracts retail buyers. A couple of years ago, a well-known online store of goods from China, entering the Russian market, collapsed prices for non-food products. Cheap souvenirs, clothes, shoes, toys, appliances and much more were delivered to the inhabitants of Russia almost free of charge.

Word dumping

Gradually, prices rose, but the buyers who came from European and American colleagues remained. The decline in consumer activity primarily affects the service sector.
They took and opened the production of televisions in the United States and stopped making deliveries from Japan. In the states, they began to produce new models, the cost of which was, of course, higher. In such a situation, the authorities could not do anything, because the company did everything right, without violating the law. It turns out that Sony, thanks to a simple dumping policy, was able to win and strengthen its position in the US market. To date, the company occupies a good position, and is a serious competitor to other manufacturers.

1. Nissan.

A well-known company producing cars was also noticed in dumping a few years ago. It all started with the fact that the manufacturer simply decided to transfer the production of vehicles to European countries. Due to this, costs were reduced, and the company decided to offer machines at reduced prices.
To understand how to dump in a commercial practice, you can use the examples of the following options:

1. Due to the high monopolization of the market, manufacturers from different countries (or large companies within the same country) agree on the mutual sale of the same product at a lower price agreed on both sides. This approach is beneficial to its participants, however, it puts other representatives of the sphere in a difficult position.
2. Reverse dumping is an artificial increase in export prices against the backdrop of lower domestic prices. Often used in commodity industries, such as the sale of oil, gas and other goods.
3. One-time dumping makes it possible to quickly sell stale goods in the warehouse, surplus. It is used in cases where the volume of production exceeds the volume of sales.

Competition is the engine of trade. Let's talk about the effective reception of the market, in which financial losses help to make a profit in the future. So what is dumping?

The concept of dumping (from the English "to dump" to dump, dump, trash) means setting prices for goods obviously below the market. This concept came into practice at the beginning of the last century. Dumping as a technique is used primarily in a competitive environment.

Please note that it is not obsolete and low-quality goods that are “dumped” at all. Dumping is a popular tool for companies and entire countries, when it becomes profitable to sell goods and services at a price below cost.

Why start "dumping"?

• To enter or gain a foothold in the market;
• To strike at competitors, to force them out of the market;
• Increase the customer base, and then increase the price to the average market;
• To capture a new market;
• To support domestic producers;
• To reduce the amount of tax and increase the financial flows of the company;
• To discriminate prices in the international market;
• To receive money quickly.

The main types of dumping:

• Price, when the exporter sets different prices when selling in the foreign and domestic markets;
• Cost, when the goods are sold on the foreign market at a price below its cost;
• Mutual, when countries sell identical goods in each other's markets at low prices;
• Currency, when goods are exported at underpriced prices from countries with a depreciated currency to states with a stable currency;
• Technological, when low prices are achieved with the help of advanced technologies;
• Sporadic, exists in the form of an international sale - is used to reduce illiquid stocks of goods, is short-term;
• Wholesale, when a large batch of securities or goods is sold without an appropriate analysis of the price and demand for the products offered;
• Rogue, when there is a systematic sale to ruin competitors;
• Non-market, carried out when exporting from a country with a non-market economy.

There are cases when losses are covered from state budgets, in favor of the interests of certain groups. The existence of subsidies for exports is actually a form of dumping.

International law considers dumping as an illegal instrument of competition.

What is a dumping price

On the territory of the Russian Federation anti-dumping duty on imported goods. This customs tariff is introduced only in case of revealing the fact of dumping. The investigation can last for 6-12 months.

In Russia, the fact of dumping is determined by the following criteria:

1. Its export value is below the normal value.
2. The damage to the country's economy was revealed as an impact on the cost of a similar product produced by a domestic manufacturer.

Please note that price reductions as marketing promotions in your supermarket are not dumping.

Low prices are not considered dumping prices if they:

• Keep on reducing production costs;
• They are built on cost reduction with secured sales;
• Become part of the marketing program when changing product positioning.

In these cases, the prices are in any case higher than the cost, and companies do not lose anything when they reduce prices in the course of marketing moves.

What else?

Dumping- sale of goods and services in the foreign and domestic markets at a specially low cost.

When the desired position in the market is reached, the state or company stops the policy of dumping. But often firms resort to one-time dumping: the sale of illiquid assets, the monetization of warehouses and the urgent need for funds in case of a threat of losses.

Some countries do not apply the policy of dumping, considering it a negative phenomenon, and use anti-dumping measures. Although with dumping, the consumer wins by paying a low price for the product.

Basis and types of dumping

The basis of the dumping process is three options.

1. Temporary dumping - prices for products are set for a certain period of time. After ousting competitors from the market, the cost of goods returns to the previous redistribution.
2. State subsidies - reduced prices for services and goods are covered by benefits. The state provides subsidies for the growth of exports of products. Possible losses are covered by loans received on preferential terms.
3. Competition - with the help of dumping policy, the company becomes a monopolist in the market, eliminating competitors.

dumping types:

• price type - the ratio of the price of goods abroad and its value at home;
• costly - the ratio of the price of selling products abroad and its costs for manufacturing, selling goods at a price below cost;
• wholesale - an offer for the sale of a large consignment of goods or securities without a specific consideration of cost and demand.

Types of dumping

Different countries and their legislation distinguish between types of dumping.

Monopoly- the company occupies the entire market or its specific segment for the production of products and sells goods abroad at a lower price than it sells on the domestic market.

Why dumping is a road to nowhere, and how to get off it

To do this, the national bank must be protected, since products sold domestically should not be crowded out by low-cost import competitors.

Monopoly dumping should be carried out with the support of the state: sanctions in the creation of activities and protection of foreign goods.

Technological dumping- sale of products at low prices as a result of high labor productivity through the use of modern advanced technology.

Social- definition of price benefits. The country of export benefits from low production costs and low social development and living standards.

sporadic species- delivery of products in large volumes to the domestic market within a short period of time. The goal is to reduce illiquid goods. The firm is faced with a dilemma: do not produce products or continue to manufacture them, but sell them to the external market at a price lower than in the domestic segment.

Deliberate dumping- special reduction in the cost of goods for export. The goal is to oust competitors and establish a monopoly.

permanent view- sale of products for a long time. Export of goods and services at a price slightly above cost.

reverse dumping is rare. Occurs as a result of a sharp fluctuation in the exchange rate. The price of goods for export is overestimated in comparison with the cost of products sold on the domestic market.

dumping mutual- counter sale of one product by two countries.

Dumping goals

The dumping policy is applied by large companies and the state for certain purposes:

• the conquest of new segments or the entire market occurs in international trade by countries -
• exporters of steel, agricultural products and other products;
• crowding out competitors;
• state policy in the field of housing lending, aimed at lowering the rate;
• benefits of a bank with the participation of the state - low tariffs are offered, and customers are poached from commercial institutions;
• price difference - the cost of the same product differs in the domestic and foreign markets.

In international practice, dumping is illegal. It is opposed by the WTO (World Trade Organization).

In the domestic market of the Russian Federation, the antimonopoly service is fighting against the policy of dumping, offering to regulate tariffs. But the idea was not supported by the state.

Moscow Institute of Economics, Management and Law

ESSAY

on the "World Economy"

Topic: “Dumping in international trade is the sale of goods at prices below domestic and world prices. Why do the subjects of world trade resort to dumping?”

Completed by: Student of the EZVDc+v1.2/0-11 group.

Kleimenova E.A.

Specialty “Accounting, analysis and audit”

Moscow

Dumping in international trade is the sale of goods at prices below domestic and world prices. Why do the subjects of world trade resort to dumping?”

Dumping (from the English dumping - reset) - the sale of goods at artificially low prices.

Dumping prices are significantly lower than market prices, and sometimes even lower than the cost of goods or services.

Dumping is carried out for various purposes: penetration or strengthening in a new market, ousting competitors. Dumping is carried out by the state and companies in the hope of compensating current losses in the future, when the desired position in the market is achieved through dumping. However, quite often, both firms and the state resort to dumping as a one-time event: they monetize warehouse stocks, sell illiquid products; in case of an acute and urgent need for funds, when there is a threat of greater losses than losses due to dumping. In some countries it is customary to consider dumping as a negative phenomenon and to fight it by applying anti-dumping laws, although in the case of dumping, the consumer can benefit by paying a lower price.

Modern legislation of developed countries distinguishes between two main types of dumping:

price dumping - or sale on the export market of a product at a price that is lower than its price on the national market;

value dumping - the sale of goods on the export market at a price that is lower than its value.

In commercial practice, dumping can take one of the following forms:

sporadic dumping - episodic sale of excess stocks of goods to the external market at reduced prices. Occurs when the internal volume of production of goods exceeds the capacity of the domestic market and the company faces a dilemma - either not to use part of the production capacity at all and not to produce the goods, or to produce the goods and sell it at a lower price than the domestic price to the external market.

Deliberate dumping - temporary deliberate reduction of export prices in order to force competitors out of the market and subsequently establish monopoly prices. In practice, this may mean exporting goods at prices below their home market prices or even below production costs.

Constant dumping - permanent export of goods at a price below their cost.

reverse dumping - overestimation of prices for exports in comparison with the prices for selling the same goods on the domestic market (for example, the export of gas and other energy carriers from the Russian Federation). It occurs rarely, usually as a result of unforeseen sharp fluctuations in exchange rates.

Mutual dumping - countertrade of two countries with the same goods at reduced prices. It is also rare in conditions of high monopolization of the domestic market of a certain product in each of the countries.

Interestingly, any dumping is illegal by definition. But, as practice shows, it is almost impossible to convict a manufacturer or seller of illegal actions, because there is almost always a more or less reasonable explanation for a sharp drop in prices. Therefore, the history of dumping is replenished every year with new examples, and there are no more punished.
Many years ago, when international trade was still underdeveloped, one could only talk about dumping in the textile or spices market, when foreign traders tried to sell as many products as possible in the shortest possible time. Now price wars have engulfed all spheres.
Dumping is quite common in tourism. Here, companies are trying to gain market share by organizing their own charter flights, and thereby reducing the cost of the tour by almost one and a half times. The situation with island Greece is widely known, when in 2008 several operators fought for the right to provide holidays there. As a result, this dumping in the tourism field led to the fact that companies lost up to 500 euros on each trip, but there was no excitement: this market turned out to be too small and most tour operators went bankrupt.
Price dumping in insurance is also developing. It would seem that the services are the same, but large companies nevertheless strive to maintain their market share and win a new one, which leads to some sacrifices on the part of insurers in order to maintain their positions.
One of the most interesting forms of dumping is the so-called currency dumping. Its essence is as follows. For example, a consignment of goods paid for in dollars enters the Japanese market. And due to the temporary depreciation of the yen relative to the dollar, it turns out that the prices for this product are lower than the average market prices. The benefit of the seller is that he was able to correctly predict the possibility of this situation.
Chiptrip dumping is that the manufacturer reduces the cost of transporting products and thus achieves significant opportunities to reduce prices. Constant chip dumping often leads to the fact that local manufacturers are simply unable to resist external aggression and are forced to leave their own market or take some serious measures, such as reorganizing production or trying to enter foreign markets.
Positional dumping aims to create an oligopoly in a particular sector of the market. Prices are falling below cost, as a result of which large producers suffer only partially, and small ones die, unable to withstand such pressure. Directly during the period of dumping, neither the service nor the high quality of the products is out of the question. There is only a systematic reduction in prices. After the sanitation of the market, a few remaining players again bring prices back to normal and are already winning buyers with product characteristics and service.
dumping examples
It is clear that dumping can lead to both positive and negative results. We already know an example of dumping by tour operators in Greece. Several years ago, Vnukovo Airlines became other victims of their stupidity in this area. By the end of 1997, this company was one of the leaders in the Russian market. But already in the summer of 1998, the company decided to win back the positions of Siberia and KrasAir in the southern directions. As a result, after a few months, the air carrier did not even have the funds to refuel the aircraft. And a few years later the company went bankrupt, and its property went to the same "Siberia". That is, we can say that here the dumping factor played clearly not in favor of the initiator.
In the 1970s, Sony entered the American market with its televisions, selling them for 40 percent less than in its own Japanese market. Such dumping methods did not please the government of the country, and the company was called to account. But here the manufacturers acted really brilliantly: they opened production in the United States and stopped importing from Japan.

Dumping and dumping price - what is it and what is it used for

In the states, completely new models were produced, which made it impossible for the American authorities to compare prices. Thus, as a result of this dumping, the initiator company won, because it strengthened its position in the American market and holds them to this day.
Known proceedings with dumping in the auto market a few years ago. Then Nissan actively placed its production in the territories of European countries. This led to the fact that the prices of their products became much lower and the company was able to sell cars at lower prices compared to importers from other countries. Such dumping of Nissan caused a wave of aggression and a number of lawsuits. But as a result, all charges were dropped from them.
As for examples of dumping in Russia, several years ago the following situation developed in one of the regions. A fairly large manufacturer of stationery had two clients who purchased products in stable batches in order to sell them. A new customer appeared and was ready to buy twice the volume of products, but with significant discounts. The manufacturer, having calculated the possible profit from the expansion of production, agreed. The result was a clear dumping in stores, as the new customer was able to significantly reduce prices and thus force out the old sellers. Those, in turn, went bankrupt, stopped purchasing goods, and the manufacturing plant also suffered. The market collapsed for several years.

Dumping is prohibited by the rules of the World Trade Organization (WTO). Dumping violates the rules of fair competition and causes losses to local producers. In world economic practice, in a number of countries it is customary to resist dumping by applying anti-dumping laws and establishing special anti-dumping duties. Since as a result of dumping, not only national producers and sellers suffer, but also the government. After all, due to lower prices, tax revenues to the budget also decrease. The state has the legal right to impose anti-dumping duties on goods that are sold at below fair prices and cause material damage to the industry of the importing state.
Dumping syndrome continues to cover all market areas. After all, as mentioned above, it is almost impossible to prove dumping. Therefore, the question of how to deal with dumping will remain open for a long time to come. And the negative and positive effects of dumping in world trade will be assessed by the most prominent economists with only one goal: to minimize its impact on the country's economy.

Bibliography

The free encyclopedia - Wikipedia.

Fundamentals of Marketing - Philip Kotler

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I want more like this...

Currently, many companies prefer to improve the consumer properties of their product while maintaining or even slightly increasing selling prices. With appropriate advertising, such<< скрытая >> a discount on the price of a product usually causes a positive reaction from the modern consumer, who so often associates a low price with unsatisfactory product quality.

Capturing the market by penetrating it based on the development of a new branded product or crowding out competitors offering similar products also occurs with non-price competition. But it is still small on the domestic Russian market, therefore it is mainly used in organizing exports. In the world, the success of non-price competition is determined (especially in Europe, North America, Southeast Asia) by the technical level, quality and reliability of the goods, confirmed by certification in generally accepted centers, the level of service and after-sales service, and not by low prices.

One of the complex problems of modern theory and practice of organizing the competitive activity of participants in the market process is to establish the causes of the emergence and diagnosis of the qualitative and quantitative conditions for the transition of price competition to non-price competition. The pioneering works in this direction include the works of J. Bulow, J. Ginakoplos and P. Klemperer, as well as J. Tyrol and D. Fyudenberg.

Non-price competition generates a whole range of major market problems.

Dumping is

Among them are the cross-industry mechanism of profits in the form of the problem of entry-exit, excess capacity, the impact on sales of non-price factors, preference and choice, competitiveness, consumption costs.

One of the weaknesses of the prevailing theories of competition is the exclusion of the consumer from them. Indicative in this regard are the conclusions of J. Tyrol (1988) about the ways of competition. So, he believes, in order to compete in the market, a firm can use many tools. He categorizes these tools according to how quickly they can be reconfigured.

In the short term, the main instrument is often the price. It is complemented by advertising and sales promotion measures. At the same time, the cost structure and product characteristics remain unchanged. Under conditions of monopolistic competition, a firm can make an economic profit if prices are higher than average costs; or face losses if prices are below average cost. Over a longer period, the cost structure and product characteristics can be changed either together or separately. Production methods can be revised and improved, and production capacity, depending on the competitive task, can be either increased or decreased. Product characteristics include quality, design, delivery times, location of outlets, etc. In the long run, product characteristics and cost structures can change not only through simple improvements in the product mix and possible costs, but also through changes in the mix.

The likelihood that easy entry into an industry with monopolistic competition will promote product diversity and product improvement is perhaps the redeeming feature of monopolistic competition, which can offset all or part of the "costs" associated with this market structure. There are actually two fairly clear circumstances here:

1) product differentiation at some given point in time;

2) product improvement over time.

Product differentiation means that at any given moment the consumer will be offered a wide range of types, styles, brands and grades of quality for any given product. Compared to pure competition, this definitely means tangible benefits for the consumer. The range of free choice is expanding, and the variety and shades of consumer tastes are more fully satisfied by manufacturers. But skeptics warn that product differentiation is not a pure good. The proliferation of certain types of products can reach the point where the consumer becomes confused, making smart choices difficult and time consuming. Variety of choices can spice up a consumer's life, but only up to a point. A woman shopping for lipstick can be overwhelmed by the sheer mass of similar products from which she can choose what she needs. Only "Revlon" offers 157 shades of lipstick, of which 41 are "pink"! Some observers also fear that the consumer, faced with a myriad of similar products, may begin to judge their quality only by the price, that is, the consumer may irrationally assume that the price is necessarily an indicator of the quality of the product. 7

Product competition is an important vehicle for technical innovation and product improvement over time. Such product improvement can be incremental in two different ways. First, the successful improvement of one firm's product obliges competitors to imitate or, if they can do so, surpass that firm's temporary market advantage, otherwise they cannot avoid losses. Second, profits made from successful product improvements can be used to fund further product improvements. However, again there are significant criticisms of product changes that can occur under monopolistic competition. Critics point out that many product changes are more apparent than real. They are minor temporary changes to a product that do not increase its durability, effectiveness or usefulness. More exotic packaging, flashy packaging or “shine” are often the main areas of product change. It is also argued that, especially in the case of consumer durables and limited-durability goods, change can occur on a “planned obsolescence” basis, with firms improving their product just enough to make the average customer feel dissatisfied with last year's performance. models.8

In oligopoly and monopolistic competition, sellers in the same market often provide a variety of similar products. The question arises whether these markets provide an adequate variety of products, or whether the desire of firms to somehow distinguish their products from those of competitors is excessive, leading to waste.

Because diversity tends to be expensive, society must choose to produce only a few of the vast array of conceivable goods and services. It would be better to limit the number of types of goods produced in most markets, compensating for this by using economies of scale in order to produce more of each type of good at a lower unit cost. If more output was produced by fewer firms and they charged the same price as average cost, then prices and unit costs would be lower. But this would be less variety than in a monopolistic competitive equilibrium, and consumers want both variety and low prices.

Looking around the store shelves, we often feel that the diversity generated by industrialists who waste resources to produce many almost identical brands of products is too great.

The larger the aggregate market, the less expensive it is to provide any given level of diversity to it. As the economy develops and the wealth of people increases, the increase in diversity becomes more efficient, as the demand for all goods increases. In a very poor country, the products of only one firm may be sufficient to satisfy the demand in many markets. As the economy grows and consumer demand expands, opportunities open up for the influx of large numbers of firms, and market structures evolve towards monopolistic competition, providing consumers with the benefits of diversity.

The same kind of gain can be obtained from the use of the advantages of international trade between countries. Most of the trade between industrialized countries takes place within the same industry. For example, Germany and France sell cars to each other. This trade in differentiated products provides the people of both countries with access to a wider range of products, each of which is produced for the world market, and therefore can be produced on a reasonably large scale.

Non-price competition with a wide range is the most promising type of competition. The company competes with the unique quality, not the low price of products. This means that only this enterprise is able to produce certain products and, without reducing prices, competes with quality. An example would be the global shipbuilding industry. Thus, Japan is the only country that builds large-tonnage tankers with a displacement of more than 100 thousand tons with a unique degree of automation. This type of competition is suitable only for large firms with great scientific and technical potential.

According to foreign scientists, products from the manufacturer to the consumer make a path that can be represented as the following formula:

Product + distribution + R&D +

Advertising of any product plays a leading role in shaping consumer demand.

Advertising in various forms, and primarily on product packaging, helps to achieve the main goal by persuading consumers to continue using the product and trying the product in new applications, as well as encouraging those who do not use the product to buy it.9

When a firm has produced a new product, an addition or a modification of an old one, advertising helps the firm in finding and attracting new customers. At the same time, she is trying to influence existing customers to keep buying the firm's products. Advertising should also be aimed at attracting buyers in order to replace those whom the company has lost as a result of competition.

Advertising causes the activity of customers in three ways: it can encourage them to direct action (the buyer is asked to immediately come and buy, send an order, etc.); indirect action (constantly reminding the brand and inducing to buy only this product); a combination of the two types, asking the buyer to take a step in the direction of the purchase, but not requiring it to be done immediately.

In advertising, several fixed means are used: television, radio, newspapers, magazines, as well as outdoor advertising media: signs, stands, shop windows, neon advertising. Advertising in the form of packaging plays a special role, so the main advertising load is, of course, packaging.

The advertising objective of a firm operating under monopolistic competition is that the firm hopes to increase its market share and increase consumer loyalty to its differentiated product. In technical terms, this means that the firm hopes that advertising will shift its demand curve to the right and at the same time reduce its price elasticity.10

5. Pricing strategies. dumping pricing.

The practice of enterprises in a market economy has developed certain strategies in the field of pricing. The most common, typical of them are:

• maintaining a stable position in the market with moderate profitability and fairly satisfactory other performance indicators of the enterprise;
• expansion of the market share in which the company sells its products. Often this is due to the desire for market leadership. However, for an enterprise that does not belong to the group of leaders, setting a goal, say, within one year to increase its market share from 8 to 11%, can be of considerable importance;
• maximizing profits, increasing the level of profitability. This increases profitability and expands the reproductive, including investment, opportunities of the enterprise. Joint-stock companies can increase the payment of dividends on shares. At the same time, tasks may be set to increase the absolute amount of balance sheet profit or product profitability;
• maintaining and ensuring the liquidity and solvency of the enterprise. This pricing and marketing policy of the enterprise is always relevant in market conditions, since the steady insolvency of the enterprise threatens it with bankruptcy. If the enterprise has reliable customers and there are no settlement problems, then the management still needs to clearly understand the conditions and prerequisites that ensure stable solvency. At the same time, it should be borne in mind that the actual price is the price paid, which is reflected in the receipt of money on the company's account. Under these conditions, it is necessary to choose customers taking into account their solvency, to use favorable forms of payment, in particular, prepayment, providing discounts on prices for customers who are impeccable in payments;
• gaining leadership in the market and in determining prices is the most active and prestigious pricing strategy for large enterprises and associations. Price leadership reflects the position of the enterprise in the market as one of the most active in setting general price levels for certain types of products, introducing innovations in the price structure, one of the first to change the price of a product, affecting the level of exchange prices. But for this, the enterprise must have sufficient capabilities and potential.
• dumping price strategy, i.e. prices deliberately lowered by the enterprise in comparison with the prevailing price level in order to obtain major advantages over its competitors. This strategy refers to monopolistic activity and is considered unacceptable.

Dumping pricing is one of the strategies prohibited by law or market ethics.

6. Dumping prices and wars.

Dumping wars reflect the use of dumping prices by one of the competitors, which means the use of prices that are significantly lower than market prices, often even below the level of the average industry production cost.
Initially, dumping prices were used in foreign trade, when exporting goods to world markets and with the aim of conquering them. Currently, the practice of dumping wars is also used in domestic markets, which is associated with the aggravation of both interstate and domestic competition in many industries and sectors of the economy. During periods of seasonal product sales, price wars occur, which buyers are often not able to recognize, since discounts provided by participating companies can be perceived by end consumers as a form of seasonal sales.
The main reason for waging price wars is the desire to capture a large share of the market. Waging a dumping war may mean the desire of its organizer to completely oust competitors from the market.
Price wars are initiated by competing companies quite often. In this regard, there is a need to find an answer to the question about their consequences for the organizers and participants, which cannot be unambiguous, since it must be considered from different angles.
On the part of the consumer, we can talk about his gain as a result of price reduction, which is confirmed by various examples from foreign and partly domestic practice. For this reason, we can conclude that price wars are not so dangerous in the conditions of developed market relations and in those markets where the shares and niches of competing companies have already been determined. Although the same result in Russia may not be, since for the Russian specifics, the displacement of a competitor in the conditions of weak antimonopoly legislation may mean the monopolization of a particular market. And then, in the long run, the consumer may lose, because the monopolist will set the prices that he wants to set.
The consequences of price wars can be:
market destabilization;
redistribution of shares of competing market participants;
ousting weak competitors, primarily small and medium-sized companies, their possible bankruptcy and ruin;
reduction in sales, income and profits of its participants, therefore, a decrease in funds for development, innovation and a possible decrease in the capitalization of companies;
reduction in the volume and deterioration in the quality of services provided;
a reduction in the number of employees and an increase in unemployment.
The main sign of waging a price war is a sharp price reduction. A price war can continue until the price of a product reaches the industry average of production costs, which means an inevitable loss in the profits of competing companies.
Holding dumping example.
Suppose there is a market with 5 players. Of these, 4 trade at a certain average ("market") price, and the 5th dumps so that its price is somewhere in the cost area. On a long time, such a situation seems to be impossible. Actually this is not true. Suppose that, unlike the other four market players, the dumping entity is actually a part of a large diversified holding, whose other divisions provide it with such a profit that allows it to dump without much difficulty. In this way, the dumping entity successfully ruins its competitors.

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There is a lot of competition in the modern market, so manufacturers resort to various methods in order to sell their goods and services. So, some are trying to dump. This means artificially lowering the cost of products in order to drive out competitors and occupy your own niche. In a number of countries, dumping is perceived negatively, therefore, laws are created against it and various measures are applied.

What is dumping?

According to financiers, dumping in the economy is an ambiguous concept. On the one hand, this phenomenon helps the state or companies to penetrate a new market and firmly gain a foothold there. On the other hand, similar goods of other manufacturers depreciate, which leads to losses.

In a general sense, dumping is understood as the sale of goods and services at prices that are artificially low. Such prices are often a position lower than market prices, and sometimes even lower than the cost of production.

What is the purpose of the persons who resort to dumping? The main goal is to get rid of competitors and strengthen your position in the market. At the same time, thinking company managers understand that dumping is also hoping to recover current losses in the future.

But the losses may differ, since some companies constantly dump prices, while others only one-time at the initial stage of trading. The latter are simply trying to quickly sell illiquid goods or monetize inventory in the warehouse. Moreover, they act in this way if there is a risk of incurring more serious losses than losses due to price dumping.

The main types of dumping

According to modern laws in force in the territories of developed countries, the following types of dumping are distinguished:

Types of dumping in commerce

As for the commercial area, there are several types of dumping, among which:

• Deliberate dumping is the deliberate underpricing of an export market in order to "remove" competing firms in an industry and later establish their own monopoly prices on goods. Sometimes these prices are lower than on national markets, and even more rarely - lower than production costs. In this situation, dumping is to act thoughtfully and systematically.
• Sporadic dumping is the desire of the company to sell excess stocks of products at a reduced price to the foreign market. This occurs when the volume of production of goods is much higher than the capacity of the domestic market. In other words, the volume of supply exceeds demand in the domestic market, and therefore there is a need to sell the surplus somewhere.
• Constant dumping - export of products at a price that is below cost, on a regular basis.
• Mutual dumping is the countertrade of two powers in the same goods at a reduced price. Sometimes such a phenomenon occurs in conditions of monopolization of a certain product in each of these two states that have decided to dump. This is not an indicator of friendly relations between countries, but only mutual financial interest.
• Reverse dumping is an increase in the price of an exported product compared to the price of the same product in the national market. This phenomenon is a rarity, it manifests itself as a result of sharp jumps in exchange rates.

What causes dumping?

The consequences of dumping are very deplorable, first of all, for the country that is the importer. Manufacturers in this state suffer because of imported cheap products. That is, they suffer serious material damage.

In addition, dumping has a negative impact on the level of growth of economic indicators on a local scale. In particular, this can be seen in the service market, where providers deliberately lower prices in order to take their "place in the sun." If such a phenomenon takes on a systemic character, then not only one industry suffers, but the entire regional market, where similar services are provided.

The fight against dumping

Today, many countries are faced with the question: how to deal with dumping? After all, the attitude towards it on the part of manufacturers is often negative. It is believed that dumping destroys all the rules of fair competition and leads to the fact that local companies suffer losses.

Modern economic practice has already come to the conclusion that it is possible to resist dumping with the help of legislation. There are already special anti-dumping laws, and an anti-dumping duty is set on the import of goods at reduced prices.

If dumping brings serious problems associated with damage from a material point of view, experts recommend that affected companies conduct an investigation and contact the relevant authorities to clarify the circumstances.

According to the previous law on the placement of government orders (Law No. 94-FZ of July 21, 2005), the main criterion for selecting suppliers and contractors was the price they offered. Contracts were concluded with merchants whose bids were the lowest. In practice, this resulted in low quality of the supplied products, failure to meet the stated deadlines and other troubles for the customer. Anti-dumping measures under 44-FZ, the law of 04/05/2013, which entered into force in January 2014, are designed to prevent such situations by preventing auction participants from artificially lowering prices.

Barriers to dumping

Dumping is the sale of goods (works, services) at an artificially low price. The state had to tighten the procedure for holding tenders and auctions, as unscrupulous businessmen and resourceful scammers quickly learned to deceive him. Offering the lowest price and winning the competition according to formal criteria, they often kept it due to the inadequate quality of the product or service. Sometimes the estimates were revised in the process of work, when, having already completed part of it, the contractor began to convince the customer that the initial prices needed to be increased. Sometimes even, having received an advance, the fraudulent supplier disappeared along with state money.

Therefore, anti-dumping measures are applied under 44-FZ justifiably and not by chance. Their main goal is not to allow suppliers and contractors to win tenders due to unfair (artificial) price reduction for the goods and services offered. It is achieved in two ways (Article 37 of Law No. 44-FZ):

if the initial/maximum price of the contract based on the results of the competition (auction) is no more than 15,000,000 rubles, the parties conclude a contract:

• or after the supplier / executor / contractor (procurement participant) provides a security increased by one and a half times - in comparison with the amount specified in the tender documentation, but not less than the amount of the advance payment, if its payment by the customer is provided;

  or after the participant provides information that indicates his good faith;

if the initial/maximum price of the contract exceeds 15,000,000 rubles, before the conclusion of the contract, the participant must provide one and a half security (but not less than the amount of the advance payment) without fail.

The criteria for the conscientiousness of the participant are determined by paragraph 3 of Art. 37 of the said law. In particular, within a year or within three years prior to the filing of the current application, he must fulfill in good faith at least 3 contracts (without fines and penalties). Or within two years - at least 4 contracts, of which at least 75% were executed without any complaints. The information is checked against a special Register. At the same time, at least one of the previously concluded contracts must be at least 20% of the price of the planned contract.

Application of anti-dumping measures under 44-FZ

So, anti-dumping measures contribute to "cutting off" from competitions and auctions of merchants, for whom the main thing is to conclude a contract, and not to fulfill it. However, they apply only in certain cases.

Additional restraining measures are necessary if the procurement participant significantly reduces the initial or maximum contract price - by at least 25%. But there are a few exceptions to this rule.

It should be noted that the above restrictions that prevent artificial low prices apply only to tenders and auctions, where state structures act on the side of the customer. Anti-dumping measures under 44-FZ are not covered by the request for quotations and proposals.

A special procedure has been developed for public procurement of medicines that are vital to the population. Their list is approved by the Government of the Russian Federation. It also establishes the maximum allowable price for such medicines. If bidders reduce the price by less than 25% relative to this value, anti-dumping protective measures are not applied to them.

If suppliers of goods required for the uninterrupted life support of citizens (food, fuel, etc.) reduce the price by more than 25% during the tender, they need to document it. For example, provide a letter of guarantee from their manufacturer or a consignment note (clauses 9, 10, article 37 of Law No. 44-FZ).

Anti-dumping measures under 44-FZ: calculation example

According to paragraph 6 of Art. 96 of Law No. 44-FZ, the contract security can vary from 5 to 30 percent of its initial or maximum price.

For example, if the price was 10,000,000 rubles, and the security amount was 2,000,000, then the supplier, having reduced the price by more than 25%, will have to increase the security deposit by one and a half times, and pre-pay 3,000,000 rubles.

But if, under the terms of the contract, the supplier is entitled to an advance in the amount of, for example, 5,000,000 rubles (50% of the contract price), the amount of the security will increase to this amount, since with an advance payment exceeding 30% of the contract amount, the amount of the security is set exactly in the amount advance.

The unreasonably low price of the offered goods, works or services rightly arouses the suspicion of the buyer. Moreover, some organizations use price dumping not in order to qualitatively fulfill the terms of the contract, but in order to get rid of unnecessary competition, while obligations under the won tender are performed improperly.

Just in order to minimize such negative consequences, the legislation establishes measures that prevent price reduction. Unfortunately, these measures are not a panacea, and unscrupulous participants still disrupt purchases.

However, for conscientious companies that are able to offer a quality product at a low price, it is necessary to know some of the features of the application of anti-dumping measures against. The same applies to Customers who must comply with all legal requirements when signing contracts.

Anti-dumping measures in open competition

It should be taken into account that when holding an open tender, the application of anti-dumping measures begins from the moment of filing an application for participation. As established by law, the participant attaches documents as part of the application to confirm the good faith in the application.

For tenders with a maximum contract price of less than fifteen million rubles, such, as is known, are executed contracts that meet the requirements of part 3 of article 37 of 44-FZ.

By submitting an application for participation in the tender and offering a price 25% lower than the initial one, the participant must decide which method of entering the performance security will be chosen by him in the future.

In the event that one and a half security is not the chosen method, the participant is obliged to provide the mentioned contracts in the application. Otherwise, these documents are not attached to the application.

In this case, the Customer should pay attention to the fact that such an application cannot be rejected, since at the date of opening the envelopes and conducting the assessment, he does not know how to confirm the good faith of the participant.

If, however, when signing the contract in the future, the participant still did not provide increased security, the contract cannot be concluded, and the participant is recognized as a evader.

Auction for the right to conclude a contract

We are talking about those cases when the participant "goes into the red", that is, the decrease is less than 0.5% of the NMCC. Some Customers at this stage make the mistake of applying anti-dumping measures to such a participant.

The legislator expressly states that in this case it does not apply to the rules established by Article 37, and the security is paid in the usual amount. Moreover, the presence of executed contracts is also not required.

Procedure for depositing security

Due to inattention or due to legal illiteracy, the winner who offered the dumping price makes a security in the usual amount established in the auction documentation without attaching the relevant contracts.

Unfortunately, in this case, after the payment order is published or published in your personal account, nothing can be done. If only all the same send the necessary contracts to the Customer.

The functionality of the site does not provide for the placement of several payment orders for one contract. Of course, such a case also leads to the fact that the winner is recognized as evaded and runs the risk of being included in the register of unscrupulous bidders.

What to look for in attached contracts

First of all, one of the main conditions, which, unfortunately, is sometimes overlooked by Customers when considering contracts confirming good faith, is their placement on the official website. Of course, the winner of the purchase is not to blame for the fact that the previous Customers did not enter the contract or information about its execution in the appropriate register (which, by the way, threatens with administrative liability).

But the fact remains that at the date of consideration, information about such contracts should be on the official website of the EIS.