ANTI DUMPING DUTIES

PRESENTED BY-
SANDEEP NAGPAL
What is dumping?
Dumping is defined as the act of a manufacturer in one
country exporting a product to another country at a
price which is either below the price it charges in its
home market or is below its cost of production.
Anti Dumping
Anti-dumping duty is a measure to rectify the
situation arising out of the dumping of goods and its
distorting effect on domestic producers of similar
goods.
Calculation of Product being dumped or
not..
There are many different ways of calculating whether a
particular product is being dumped heavily or only
lightly-
 It provides three methods to calculate a product’s “normal
value”. The main one is based on the price in the exporter’s
domestic market.
When this cannot be used, two alternatives are available:-
1. The price charged by the exporter in another country and
2.calculation based on the combination of the exporter’s
production costs, other expenses and normal profit margins.
Contd…..
And the agreement also specifies how a fair
comparison can be made between the export price and
what would be a normal price
Substantive rules…
“Normal value” is the comparable price at which the
goods under complaint are sold, in the ordinary course
of trade, in the domestic market of the exporting
country.
The “export price” of the goods allegedly dumped
into India means the price at which it is exported to
India. It is generally the CIF value minus the
adjustments on account of ocean freight, insurance,
commission
Contd….
The “margin of dumping” 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.
“Domestic industry” means the domestic producers
as a whole engaged in the manufacture any particular
article and any activity connected therewith or those
whose collective output of the said article constitutes a
major proportion of the total domestic production.
Requirements for start a dumping
investigation……
An anti-dumping measure may not be imposed
unless it is determined that :-
There is existence of dumped imports;
There is material injury to a domestic industry; and
There should be a causal link between the dumped
imports and the injury.
Contd….
It includes :-
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.
Antidumping actions….
WTO agreement :-
Its focus is on how governments can or cannot react
to dumping.
It disciplines anti-dumping actions
the WTO agreement allows governments to act
against dumping where there is genuine ("material")
injury to the competing domestic industry.
government has to be able to show that dumping is
taking place & and the dumping is causing injury to
their domestic industry
Contd….
 (GATT) (Article VI) allows countries the option of
taking action against dumping. The Anti-Dumping
Agreement clarifies and expands Article VI
Antidumping in different countries…
 Actions in the European Union
European Union anti-dumping is under the purview
of the European Council. It is governed by European
Council regulation 384/96. However, implementation
of anti-dumping actions (trade defence actions) is
taken after voting by various committees with member
state representation.
 In China
Definitions of several key legal terms, including the
concept of related producers, the negligible import
standard, and adjustment factors for a fair comparison
between normal values and export prices are still
absent, and some legal problems relating to price
undertakings and the countermeasure system remain
to be solved. China should continue to proceed with
the task of clarification and improvement of its trade
rules.