The Japanese government is discussing imposing anti-dumping duties on dumped goods that bypass third countries, with China and other nations in mind, according to a report by the Yomiuri Shimbun on the 7th.

A Japanese container ship at Tokyo Port. EPA Yonhap News

Anti-dumping duties are tariffs imposed when goods are exported at excessively low prices. Recently, there has been a noticeable trend of countries like China trying to circumvent anti-dumping duties by performing final processing of parts or unfinished products in third countries, the newspaper reported.

For example, Chinese graphite electrodes used in electric furnaces, etc., became subject to Japan's anti-dumping duties this year, leading to a decrease in imports from China. However, imports from third countries, where manufacturers are not located, have increased.

In this regard, the Japanese government is discussing reflecting a measure in its fiscal year 2026 tax reform plan that would impose anti-dumping duties at the same rate as direct exports, even if the target products are rerouted through third countries.

Whether goods are rerouted through a third country will be determined comprehensively, with proposals suggesting criteria such as cases where more than 60% of the export product's value is produced in the country subject to anti-dumping duties.

Furthermore, the Japanese government plans to shorten the investigation period to respond swiftly to rerouting export activities.

The newspaper stated, "Industries such as steel are demanding strengthened responses to rerouting exports aimed at avoiding anti-dumping duties," and "There are already movements overseas to prevent such rerouting."