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Anti Dumping Duty

Current Affairs

Context 

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 DUTYCountervailing Duties
customs duty on imports providing a protection against the dumping of goods at prices substantially lower than the normal valuecustoms 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.

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