Foreign Trade Policy

Dumping is a process of selling goods abroad at a price below that charged in the domestic market. Foreign sellers abroad do this to capture Indian markets to the detriment of Indian industry. This is an unfair trade practice which can have a distortive effect on international trade.

Anti dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The Central Government may levy additional duty equal to margin of dumping on such articles if the goods have been sold at less than normal value. Dumping Margin is the difference between the Normal value and the export price of the goods under complaint. It is generally expressed as a percentage of the export price.

After the exact rate of dumping duty is finally determined. Dumping duty can be imposed even when goods are imported indirectly or after changing the condition of goods. The imposition of anti dumping duty is based on commodity to commodity, country to country and suppliers in exporting countries.

The Govt. has appointed Additional Secretary to the Govt. of India Ministry of Commerce as designated Authority for purpose of identification, assessment and collection of Anti Dumping Duty on dumped articles and for determination of injury.

Essential requisites for initiating an Anti Dumping Investigation

• Sufficient evidence to the effect that there is dumping and injury to the domestic industry.
• The domestic producers expressly supporting the anti dumping application must account for not less than 25% of the total production of the like article by the domestic industry.

Prevention from Anti Dumping Investigation

• Any exporter whose dumping margin is less than 2% of the export price shall be excluded from the purview of anti-dumping duties.
• If the volume of the dumped imports, actual or potential, from a particular country accounts for less than 3% of the total imports of the like product then investigation against any country is terminated

The interested parties to an Anti Dumping Investigation include:

• The domestic industry on whose complaint the proceedings are initiated;
• The exporters or the foreign producers of the like articles subject to investigation;
• The importers of the same article allegedly dumped into India;
• The Government of the exporting country/ countries.
• The trade or business associations of the domestic producers/importers/user industries of the dumped product.