Anti Dumping Duty

Anti dumping duty is a duty levied on goods manufactured in foreign countries and imported into the us. These imports have a lower price than the fair market value of the same or similar goods in the domestic market. The government imposes anti dumping duties on imports when there are reasons to believe that the goods are being dumped into the domestic market due to their low pricing. Anti-dumping duty is a way of protecting local businesses and markets from unfair competition by imports. In other words, it is a protectionist tariff.

India has imposed anti-dumping duty on imports of a chemical used in foam making from four regions, including the EU and Saudi Arabia, for five years to guard domestic players from cheap shipments. The duty was imposed following recommendation of the commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR), which conducted a probe into alleged dumping of ‘Toluene Di-Isocynate’ from the EU, Saudi Arabia, Chinese Taipei and the UAE.

According to a notification of the Department of Revenue ,”the anti-dumping duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of imposition of the provisional anti-dumping duty, that is, the 2nd December, 2020″.

The duty imposed ranged between USD 102.05 and USD 368.2 per tone.

India And Anti Dumping

In India, anti-dumping actions are taken by the Directorate of Anti-dumping and Allied Duties, Ministry of Commerce, as per the Customs Tariff Act, 1975, as amended in 1995 based on Article VI GATT 1994. For the government to initiate anti-dumping action the Indian industry must be able to show that dumped import are casing or threatening to cause material injury to the Indian Domestic industries. Obviously the ability of India to do so depends on proper environmental monitoring, data base and procedural familiarity.

Material retardation to the establishment of an industry is also regarded as injury. For anti0dumping action a causal link between the material injury being suffered by the Indian industries and the dumped import must be established. The economic and financial impact of the dumped imports on the Indian Industries concern can be demonstrated, inter-allia, by decline in output loss of sells, loss of market shares, reduce profits, decline in productivity, decline in capacity utilization, reduce return on investment, price effects, and adverse effects on cash flow, employment, wage, growth, investments, ability to raise capital etc.

Anti0dumping actions may be suspended or terminated if the exporter concern furnishes and under taking to revise the price to remove the dumping the injurious effect of dumping the rules also provide for retrospective measures in certain cases.

Globalization has in fact become a buzz-world with Indian firms now and many are expanding their overseas business by different strategies such as exporting, licensing, counter trading, joint ventures etc. if we adopt for technical upgradation in manufacturing, quality product and price competitiveness we can overcome the problem and tackle the problems created by dumpling.

Who Can File complaint Against Dumping Activities In India?

The Directorate of Anti Dumping and Allied Duties (DGAD) can take a sue moto cognizance to impose anti-dumping duty on an importer when it is satisfied that a substantial and grave injury is caused to a domestic industry. 

A complaint can be filed by the domestic industry engaged in dumped goods. ‘Domestic industry’ includes the manufacturers who constitute a majority portion of the entire domestic industry of dumped goods. The application for anti-dumping duty must be supported by producers who collectively manufacture at least 50% of total production. The investigation process must also be supported by manufactures constituting 25% of total domestic production.

What Is The Procedure Of Levying Anti Dumping Duty In India ?

  1. An application is filed by the domestic industry or DGAD on its own cognizance.
  2. The proceedings begin and responses are invited from 50% domestic producers constituting the total domestic market.
  3. Provisional anti-dumping duty is levied on the basis of preliminary findings.
  4. Final findings are drawn on the basis of inspection of domestic industry and importers.
  5. The final anti-dumping duty is levied on the exporting company. 

The entire investigation process has to be concluded within 12 months from the date of filing the application. Anti-dumping rules also state that this period may be extended by the period of 6 months, limiting the time period to 18 months. An application for appeal can be filed against the final decision can be filed with the Customs, Excise and Service Tax Appellate Tribunal along with Rs. 15,000 within 90 days of final order.


The revised procedures and streamlined questionnaires stipulated by the DGTR should simplify the procedural requirements and obligations of some of the stakeholders. Domestic Industry Applicants and specifically fragmented domestic industry players may gain optimum benefit from the revisions. The provision of limiting the costing related information to be supplied in cases of the fragmented industry at the time of filing and adoption of sampling for determination of domestic industry may lead to providing the benefit of AD / CVD procedures to such fragmented industries affected by dumping or unfair subsidization. A revised Checklist has also been provided by the DGTR. The revision in Foreign Producer Questionnaires abundantly clarifies the requirement of participation of unrelated exporters through questionnaire responses. Overall, in the case of foreign exporters as well, specific requirements have been provided with clear and specific filing requirements. In the case of User Industry, the requirement of providing cost information has been continued which may be burdensome considering the level of participation and the resources available to such user industry. Overall, there are clear steps being implemented towards encouraging meaningful and effective participation by affected interested parties.

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