Laws of anti - dumping in India
Relief/ Remedy to the domestic industry
The relief to the domestic industry against dumping of goods from a particular country is in the form of anti-dumping duty imposed against that country/is, which could go upto the dumping margin. Such duties are exporter specific and country specific.
However, the remedy against dumping is not always in the form of anti-dumping duty. The Authority may terminate or suspend investigation after the preliminary findings if the exporter concerned furnished an undertaking to revise his price to remove the dumping or the injurious effect of dumping as the case may be. No anti-dumping duty is recommended on such exporters from whom price undertaking has been accepted.
Remedial Measures Against Unfair Trade Practices
Apart from dumping, some of the countries also resort to subsidization of their exports to other countries. Export subsidies, under the WTO agreement, are treated as unfair trade practice and such subsidies are actionable by way of levy of anti-subsidy countervailing duty.
There is one more trade remedial measure called " safeguards " which are applied as an emergency measure in response to surge in imports of a particular item.
Anti subsidy countervailing measure is in the form of countervailing duty which is to be imposed only after the determination that:
the subsidy is a specific subsidy
the subsidy relates to export performance;
the subsidy relates to the use of domestic goods over imported goods in the export article; or
the subsidy has been conferred on a limited number of persons engaged in manufacturing, producing or exporting the article.
A subsidy is said to exist;
(a) if there is a financial contribution by the Government or any public body within the territory of the exporting country, i.e. where-
there is a direct transfer of funds (including grants, loans and equity) by the Government;
government revenue i.e. otherwise due is foregone and not collected (including fiscal incentives, I.T. exemption
a government provides goods or services other than general infrastructure;
(b) a government grants or maintains any form of income or price support which operates directly or indirectly to increase export of any article from its territory.