Laws of anti - dumping in India
Anti-dumping and the customs duty
Although anti-dumping duty is levied and collected by the Customs Authorities, it is entirely different from the Customs duties not only in concept and substance, but also in purpose and operation. The following are the main differences between the two: -
Conceptually, anti-dumping and the like measures in their essence are linked to the notion of fair trade. The object of these duties is to guard against the situation arising out of unfair trade practices while customs duties are there as a means of raising revenue and for overall development of the economy.
Customs duties fall in the realm of trade and fiscal policies of the Government while anti-dumping and anti subsidy measures are there as trade remedial measures.
The object of anti-dumping and allied duties is to offset the injurious effect of international price discrimination while customs duties have implications for the government revenue and for overall development of the economy.
Anti dumping duties are not necessarily in the nature of a tax measure inasmuch as the Authority is empowered to suspend these duties in case of an exporter offering a price undertaking. Thus such measures are not always in the form of duties/tax.
Anti dumping and anti subsidy duties are levied against exporter / country in as much as they are country specific and exporter specific as against the customs duties which are general and universally applicable to all imports irrespective of the country of origin and the exporter.
Where any article is exported from any country or territory (hereinafter in this section referred to as the exporting country or territory) to India at less than its normal value, then, upon the importation of such article into India, the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.
Margin Of Dumping in relation to an article, means the difference between its export price and its normal value.
Export Price means the price of the article exported from the exporting country or territory and in cases where there is no export price or where the export price is unreliable because of association or a compensatory arrangement between the exporter and the importer or a third party.
Normal Value means the comparable price, in the ordinary course of trade, for the like Article when meant for consumption in the exporting country or territory.
A normal value may be determined where there are no sales of the like article in the ordinary course of trade in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either-
comparable representative of the like article when exported from the exporting country or territory or an appropriate third country; or
the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling and general costs, and for profits,