Unit 2 Chapter 2 & 3

Anti Dumping Duties

Dumping

● Any company
● Exports a product
● At a lower price
● Than the price it normally charges
● On its own home country
 Certain examples of Dumping

Medicines
Sports Shoes
Dry Batteries
Electronics
Toys
CD ROMs
CFLs
Types of Dumping

Sporadic

Predatory

Persistent

Reverse
Sporadic Dumping

• When manufacturers with unsold

inventories wants to get rid of
distressed and excess merchandize

• To preserve its home market and

avoid price war
• Destroy
• Selling for any price
• Excess supply to be dumped in a country
where the product is not sold
Predatory Pricing

Selling at a loss to gain access to a

market
Perhaps, to drive and ultimately beat the
competition

Once the competition is gone or the

market is established
Company uses its monopoly to increase
price
Persistent Dumping

Consistent selling at lower prices in one

market than in others.

Firm’s recognition that different markets have

different demand and overhead costs.

Firm may use marginal cost pricing abroad

while using full cost at home market.
Reverse Dumping

The previous three kinds have one

thing in common

Each involves charging lower prices

abroad than at home.

Overseas market is priced higher than

what is in the host country
• WTO condemns but doesn't disallow

• It says dumping is ok as long as

there is no “INJURY” caused to the
nation subjected to dumping.

• In India, the Govt. has appointed

Additional Secretary to the Govt. of
India Ministry of Commerce as
designated Authority for purpose of
above rules
• Anti dumping duties are additional duties
imposed on imported Products being
“Dumped”.

• These generally don’t exceed the margin

of dumping

• Margin of dumping: differences in price

between the export price and normal price
Regulatory framework of
international Trade
 Trade Policy
 Free Trade
 Protectionism
 Instruments of Trade Control
 Tariff
 Non Tariff Barriers
 Multilateral Regulation of Trade
 GATT
 WTO
 WTO and India
Trade Policy

• All measures regulating the external

economic relations of a country

• Some advocate to have free

interplay of market
• While some, have considerations for
developing countries’ domestic
marketers

• Free Trade
• Protection
• Free Trade • Protection Policy

• No restriction on • Imports have

the movement of restrictions
goods between
countries
• Domestic
• Imports are Producers get
allowed to advantage in
compete in equal competing against
amount with imports
domestic markets
How do they do??

Instruments of Trade Control

Tariff

Non Tariff Barriers

Tariff

• Export Duties
• Import Duties
• Transit Duties
• Specific Duties
• Ad-Valorem Duties
• Compound Duties
• Protective Tariff
• Antidumping Duties
• Countervailing Duties
Non Tariff Barriers

Quotas Import Licensing

Tariff quota VERs
Unilateral Discriminatory
Bilateral Procurement
Currency Control Counter Trade
Subsidies Eco labeling
Embargo Social Dumping
Administrative delays
Multilaterals Regulations

GATT

WTO

WTO & India

–

– Thank you