Thursday, 30 August 2012

Dumping and Anti-Dumping

Dumping is said to have taken place when an exporter sells a product to India at a price less than the price prevailing in its domestic market. However dumping per se is not condemnable and actionable. 
Anti-dumping action is taken when there is sufficient evidence that dumped imports are causing or are threatening to cause material injury to the Indian industry producing like articles or are materially retarding the establishment of industry.

The designated authority in India which investigates dumping and imposes duties is the Directorate General of Anti-Dumping and Allied Duties (Ministry of Commerce, GoI). The General Agreement on Tariffs and Trade lays down the principles to be followed by the member countries for imposition of anti-dumping duties, countervailing duties and safeguard measures. The legal framework invoked in this regard include:
  • Based on Article VI of GATT 1994
  • Customs Tariff Act, 1975 - Sec 9A, 9B (as amended in 1995)
  • Anti-Dumping Rules [Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995]
  • Investigations and Recommendations by Designated Authority, Ministry of Commerce
  • Imposition and Collection by Ministry of Finance
The uncertainty in the international economic environment could lead to a rise in anti- dumping measures by countries in the coming months. India has been getting a lot of undue flak internationally for the highest anti-dumping initiations, especially with respect to China. [Read India-China Trade]

Economic Survey 2012, pg 172

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