Indian anti Dumping Rules

The provisional anti-dumping duty is hereby imposed on the basis of provisional findings. The anti-dumping duty is a measure imposed by the government of one country on imports from another country that exports its products at a price below market value in its own domestic market. Anti-dumping duties are imposed to protect the domestic market of the importing country against unfair trading practices used by exporters to disrupt the domestic market and create a monopoly by producing like products at very low prices. Anti-dumping, as we have already mentioned, has several advantages, but there is no shortage of disadvantages. While this is an indispensable measure to regulate discriminatory prices and monopolies, it has long-term drawbacks. This measure is justified by the fact that it would help domestic industry to prosper and prevent a foreign monopoly. However, it has been demonstrated that the anti-dumping measures have failed to restore the “normal” price of the products. Although the main motive is to promote fair competition, foreign companies are deprived of the same because domestic companies are free to undervalue each other. A. In the anti-dumping proceeding, it is essential to demonstrate that the dumping has caused injury to the domestic industry. Without a causal link being established, no anti-dumping duty is recommended. That is, Years.

Although anti-dumping duties are collected and collected by customs authorities, they are completely different from customs duties not only in their design and content, but also in their purpose and operation. The main differences between the two are listed below: – The anti-dumping duty is only valid for a period of 5 years and its applicability expires if the duty is not reviewed and renewed. Theft. The following factors are essential for the initiation of an anti-dumping investigation: – It covers only imports from countries for which dumping has been requested and the complaint has been lodged and the duty recommended. The definitive anti-dumping duty is imposed on the exporting company. As a result, dumping, with the secret and opaque support of their government, gives companies in the exporting country an unfair advantage by increasing market share and injury and, to some extent, even eradicating the domestic market of the importing country, as it is often the behaviour of customers to seek cheap products and exporters exploit this inherent behaviour by dumping their products into the market, gradually kill the producers of the importing country. whose prices are not artificially derived or fixed. India is currently phasing out its quantitative restriction on imports. With the lifting of restrictions on import licensing, several of India`s trading partners have tended to dump their products of various types into India, creating unfair competition in the domestic market in which the domestic industry has been harmed. Article 11 of the WTO Anti-Dumping Agreement[9] provides a legal framework to combat the excessive use of an anti-dumping measure. [10] If Article 11 is followed by Member States within the meaning of the WTO Agreement, the application of anti-dumping duties can be effectively controlled by the international trading system aimed at preventing protectionist trade measures[11]. Article 11(1) provides that `an anti-dumping duty shall remain in force only for the time and measure necessary to combat injurious dumping`.

Article 11(2) provides that `the authorities shall examine, after a reasonable period of time, the need to continue the introduction of customs duties`. Article 11(3) provides that `any anti-dumping duty shall be repealed no later than five years after its imposition, unless the authorities determine that dumping and injury are likely to continue or recur should the duty lapse`. In addition to calculating the margin of dumping, the designated authority also calculates the injury margin for the domestic industry. The injury margin is the difference between the non-injurious price due to the domestic industry and the landing value of the dumped imports. The practice of dumping is not bad in itself, depending on market conditions and the freedom of traders to set the desired price. For this reason, the WTO does not condemn dumping or anti-dumping. Dumping practices cannot harm domestic industries in all cases, so that national law allows the country to impose anti-dumping duties only if a causal link between the dumping and the injury caused is established. The domestic industry concerned may appoint a lawyer specialising in anti-dumping cases, who may lodge the anti-dumping application to that effect. MyAdvo provides the best legal services to companies and has experienced in-house lawyers specializing in anti-dumping issues.

Hire a MyAdvo corporate lawyer. Send us an e-mail to or call us at +919811782573. Dumping means the export of goods through one country/territory to the market of another country/territory at a price below normal value. If the export price is below normal value, this constitutes dumping. Thus, two basic parameters are used for the determination of dumping, namely normal value and export price. Both elements must be compared at the same level of trade, generally ex-works, in order to assess dumping. The imposition of an anti-dumping duty could have an impact on the price level of the products produced from the product concerned. However, fair competition on the Indian market is not limited by anti-dumping measures. On the basis of the provisional findings of the designated authority, the central government may impose a provisional duty not exceeding the dumping margin.

Theft. The Act provides that an order establishing the extent and effects of dumping may be challenged before the Customs, Excise and Gold (Control) Appeal Tribunal (CEGAT). However, in the Court`s view, only the final submissions/orders of the designated authority/Ministry of Finance can be challenged before CEGAT. Theft. Anti-dumping duties are recommended and collected in two stages, provisional and definitive. Where the definitive duty is lower than the provisional duty already collected and collected, the difference already collected as a provisional duty shall be refunded. Q.16 Can the order in which the anti-dumping duty was imposed be challenged? If so, what is the appellate authority? Theft. The Act provides that an order establishing the extent and effects of dumping may be challenged before the Customs, Excise and Gold (Control) Appeal Tribunal (CEGAT). However, the judiciary considers that only the final findings/orders of the designated authority/Ministry of Finance can be appealed before the CEGAT.No appeal is lodged against the authority`s provisional findings and the provisional duty imposed on its basis. The complaint to CEGAT must be filed within 90 days.

Q.17 Can the anti-dumping investigation be terminated once initiated? If so, what are the circumstances? A. The designated authority may suspend or terminate the investigation in the following cases: the importation of cheap goods through illegal trade routes such as smuggling does not fall within the scope of the anti-dumping measures. A. Complaints may be lodged by or on behalf of the domestic industry concerned with the designated authority within the Ministry of Commerce with a view to an investigation into the alleged dumping of a product into India. In accordance with the rules of procedure, a valid application may only be submitted by domestic petitioners/producers who expressly support the application and who represent more than 25 % of the total domestic production of the similar article concerned. Nevertheless, anti-dumping measures are important to protect developing countries. Different countries are at different stages of development with different rates of development. They have economies of different sizes and different internal market conditions.

This makes justice just as important as equality. Therefore, anti-dumping measures are justified to the extent that they are aimed at domestic industry and the continued economic growth of countries. A. The anti-dumping duty is recommended and imposed in two stages, provisional and definitive. Where the definitive duty is lower than the provisional duty already collected and collected, the difference already collected as a provisional duty shall be refunded. Where the definitive duty exceeds the provisional duty already imposed and collected, the difference shall not be collected. Where the provisional duty is withdrawn on the basis of the definitive findings of the designated authority, the provisional duty already collected shall be refunded. Q.15 What arrangements have been made to communicate the recommendations to the designated authority? A. Dumping occurs when an exporter sells a product to India at a price below the normal value of the like product sold in the exporter`s domestic market. However, low-priced or low-priced imports do not indicate dumping.

Normal value is the comparable price at which the goods complained of are sold in the ordinary course of trade in the domestic market of the exporting country or territory. Section 9A of the Act defines dumping as a practice in which goods from a country are exported to India at a lower than normal value. A product is considered to be exported at a price below its normal value: the main objective of the WTO multilateral trade regime is to establish free and fair international trade. With the abolition of RQs, India moved towards the free trade regime. At the same time, anti-dumping measures may be applied in the interest of fair trade, provided that this is justified. .