Singhania and Company LLP, Advocates and Solicitors

Anti Dumping Laws in India

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Anti-dumping duty is a measure to correct the situation arising out of the dumping of goods and its distorting effect on domestic producers of similar goods. Rapid industrialization has resulted in large-scale production and in this situation dumping enables the producer to establish a dominant position in the market. This is common in international commercial practice for export prices to be lower than the domestic ones. Therefore there is nothing inherently immoral about the practice of dumping. However, when dumping causes or threatens to cause, material injury to the domestic industry it is viewed gravely.

Substantive Rules:
"Dumping" means export of goods by one territory to the market of another territory at a price lower than the normal value. If the export price is lower than the normal value, it constitutes dumping. Therefore, there are two fundamental parameters used for determination of dumping, namely, the export price and the normal value. Both these elements have to be compared at the same level of trade, normally at ex-factory level, for assessment of dumping." 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.

Practice and Procedure:
One main objective of the procedural requirements is to ensure transparency of proceedings, a full opportunity for parties to protect their interests, and adequate explanations by investigating authorities of their determinations. The wide-ranging and detailed procedural requirements relating to investigations focus on the sufficiency of petitions to ensure that merit fewer investigations are not initiated, on the establishment of time periods for the completion of investigations, and on the provision of access to information to all interested parties, along with rational opportunities to present their views and arguments. The Rules and regulations also provide for the timing of the imposition of anti-dumping duties, the duration of such duties, and oblige Designated Authority to periodically review the continuing need for anti-dumping duties and price undertakings. It is also provided at its discretion, take anti-dumping actions at the request of a third country, which is a member of the World Trade Organization. The anti-dumping procedures are based on an application made by the concerned domestic industry to die Designated Authority in the Department of Commerce for an investigation into alleged dumping of a product into India. Under the Rules a valid application can be made only by those petitioners/domestic producers, who expressly support the application, and account for more than 25% of total domestic production of the like article in question.
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