Laws of anti - dumping in India
Procedure to file an anti-dumping case
Initiating a n Anti Dumping Investigation
The following are essential for initiating an anti-dumping investigation:-
- Sufficient evidence (Bill of Entry, Invoices, Letter from the Indian Mission in the subject country, Data from secondary sources like specialized commodity journals etc. as to the existence of dumping in relation to the goods imported from the subject country) to the effect that
- there is dumping
- there is injury to the domestic industry; and
- there is a causal link between the dumping and the injury, that is to say, that the dumped imports have caused the alleged injury.
- The domestic producers expressly supporting the anti-dumping application must account for not less than 25% of the total production of the like article by the domestic industry.
The application is deemed to have been made by or on behalf of the domestic industry, if it is supported by those domestic producers whose collective output constitute more than 50% of the total production of the like article produced by that portion of the domestic industry expressing either support for or opposition as the case may be, to the application.
Determining the injury to the domestic industry
Broadly, injury may be analyzed in terms of the volume effect and price effect of the dumped imports. The parameters by which injury to the domestic industry is to be assessed in the anti-dumping proceedings are such economic indicators having a bearing upon the state of industry as the magnitude of dumping, and the decline in sales, selling price, profits, market share, production, utilization of capacity etc.
Establishing link between dumping and injury to the domestic industry
In the anti-dumping proceedings, it is imperative to prove that the dumping has caused injury to the domestic industry. Anti dumping duty shall not be recommended without a finding of this causal relationship.
The causal link is to be established generally in terms of the following effects of dumped imports on domestic industry: -
- volume effect
- price effect
The volume effect of dumping relates to the market share of the domestic industry vis-à-vis the dumped imports from the subject country while with regard to the price effect, the Designated Authority shall consider whether there has been a significant price under cutting by the dumped imports as compared with the price of the like product in India, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increase which otherwise would have occurred to a significant degree.