Dumping :
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Dumping is the practice whereby the exporting nation sells its goods and services at a price lower than the price at which the importing nation sells the same goods and services within its domestic market
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The objective of dumping is to increase market share in a foreign market by driving out competition and thereby create a monopoly situation where the exporter will be able to unilaterally dictate price and quality of the product.
Anti - dumping Duty :
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An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
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The purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade.
Institutional Arrangement in India for Anti Dumping Measures :
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Anti dumping and anti subsidies & countervailing measures in India are administered by the Directorate General of Anti dumping and Allied Duties (DGAD) functioning in the Department of Commerce in the Ministry of Commerce and Industry and the same is headed by the "Designated Authority".
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The Designated Authority’s function, however, is only to conduct the anti dumping & countervailing duty investigation and make a recommendation to the Government for imposition of anti dumping or anti subsidy measures.
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Such duty is finally imposed by a Notification of the Ministry of Finance. Thus, while the Department of Commerce recommends the anti-dumping duty, it is the Ministry of Finance, which levies such duty.
WTO and anti - dumping Duty:
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The World Trade Organization does not regulate the actions of companies engaged in dumping, but instead focuses on how governments can—or cannot—react to dumping.
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The use of anti dumping measure as an instrument of fair competition is permitted by the WTO.
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