Laws of anti - dumping in India
Laws of Anti-dumping in India
Dumping is said to have taken place when an exporter sells a product to India at a price less than the Normal Value of ‘like articles' sold in the domestic market of the exporter. However, imports at a cheap or low prices do not indicate dumping. The normal value is the comparable price at which the goods under complaint fare sold, in the ordinary course of trade, in the domestic market of the exporting country or territory.
This is an unfair trade practice which can have a distortive effect on international trade. Anti-dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti-dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The use of anti-dumping measure as an instrument of fair competition is permitted by the WTO. In fact, anti-dumping is an instrument for ensuring fair trade and is not a measure of protection per se for the domestic industry.
The first Indian Anti-dumping legislation came into existence in 1985 when the Customs Tariff (Identification, Assessment and Collection of duty or Additional duty on Dumped Articles and for Determination of Injury) Rules, 1985 were notified. However, the laws of anti-dumping in India
- Based on Article VI of GATT 1994 (commonly known as Agreement on Anti-Dumping)
- Customs Tariff Act, 1975 - Sec 9A, 9B (as amended in 1995)
- Anti -Dumping Rules [Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules,1995]
- Investigations and Recommendations by Designated Authority, Ministry of Commerce
- Imposition and Collection by Ministry of Finance