India has imposed Anti-Dumping Duties on five Chinese products, including certain aluminium goods and some chemicals, for five years on recommendations from Directorate General of Trade Remedies’ (DGTR)
- Dumping: This is an unfair trade practice which can have a distortive effect on international trade.Dumping is said to occur when the goods are exported by a country to another country at a price lower than the price it normally charges in its own home market.
- Anti dumping duty: It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Imposition of Anti-dumping duty is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect.In the long-term, anti-dumping duties can reduce the international competition of domestic companies producing similar good.
Anti dumping duty VS Countervailing Duties:
|ANTI DUMPING DUTY||Countervailing Duties|
|customs duty on imports providing a protection against the dumping of goods at prices substantially lower than the normal value||customs duty on goods that have received government subsidies in the originating or exporting country|
WTO’s Provisions Related to Anti-Dumping Duty:The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organization.
- Validity: An anti-dumping duty is valid for a period of five years from the date of imposition unless revoked earlier.
- Sunset Review: It can be extended for a further period of five years through a sunset or expiry review investigation.
About Directorate General of Trade Remedies’ (DGTR)
- It is the apex national authority under the Ministry of Commerce and Industry for administering all trade remedial measures including anti-dumping, countervailing duties and safeguard measures.
- It provides trade defence support to the domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.