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Dumping final (c)


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Dumping presentation Part BMS 6th sem..!!

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Dumping final (c)

  1. 1. GROUP NO.14
  2. 2.  Rajeshree Desai 7718 Sharayu Mhadgut 7757 Prashant Mirgule 7759 Group no. 14 MCC .TYBMS (2011)
  3. 3. “Dumping is a situation of international pricediscrimination, where the price of a product whensold to the importing country is less than theprice of the same product when sold in themarket of the exporting country.” Group no. 14 MCC .TYBMS (2011)
  4. 4. Example: China & India Coming Into InternationalBusiness Transaction….!! Product: Fertilizers & Pesticides Exporter Importer e.g. China Selling India Home Foreign Market Market Lower Than the Home Market Price Group no. 14 MCC .TYBMS (2011)
  5. 5.  As a short-term predatory pricing strategy to drive competitors out of the market As a result of market intervention or state subsidies that enable companies to artificially lower their prices Group no. 14 MCC .TYBMS (2011)
  6. 6.  SPORADIC Dumping INTERMITTENT Dumping LONG-PERIOD Dumping Group no. 14 MCC .TYBMS (2011)
  7. 7. Fundamental parameters are determined.a) Normal domestic selling price of the product or similar products in the exporting country.b) Export price being offered in the importing country. Domestic price of exporter > export price Dumping = price discrimination between national markets Dumping causes import nation injury…!! .TYBMS (2011) Group no. 14 MCC
  8. 8.  Injury parameters include factors such as:o Actual or potential decline in saleso Loss of profitso Decrease in Market shareo Low Capacity utilizationo Lower Employmento Wageso Ability to raise capital Group no. 14 MCC .TYBMS (2011)
  9. 9.  When the price causes or threatens to cause material injury to the domestic industry of the importing country can there be an action against dumping. An anti-dumping investigation can be started only if there is a written complaint on behalf of the domestic industry.(a significant share of the domestic producers have to support the complaint). Group no. 14 MCC .TYBMS (2011)
  10. 10. Group no. 14 MCC .TYBMS (2011)
  11. 11.  It is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Re-establish fair trade. The use of anti dumping measure as an instrument of fair competition is permitted by the WTO. It provides relief to the domestic industry against the injury caused by dumping and charge to exporters country Anti dumping duty. Group no. 14 MCC .TYBMS (2011)
  12. 12. Sufficient evidence 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.
  13. 13. ANTIDUMPING DUTY NORMAL CUSTOMS DUTY To guard against unfair  means of raising revenue and for trade practices overall development of the economy. trade remedial measures.  trade and fiscal policies of the Government not necessary in the nature  Necessary in nature levied against exporter  universally applicable to all specified by the importing imports irrespective of the country. country of origin and the exporter. Group no. 14 MCC .TYBMS (2011)
  14. 14. Business Standard - 15 December,2009 Group no. 14 MCC .TYBMS (2011)
  15. 15.  India to impose antidumping duties on some equipment imported from China. Chinese companies entered the Indian telecom market, offering products and services at prices about a third cheaper than that of global competitors. Indian manufacturers hurt as well Group no. 14 MCC .TYBMS (2011)
  16. 16.  Fibrehome Telecommunication Technologies Ltd. will have to pay a duty of 23.6%, Alcatel- Lucent Shanghai Bell Co. 29% and Israels ECI Telecom Ltd. 93% on equipment imported from China Group no. 14 MCC .TYBMS (2011)
  17. 17. The Indian Shrimp Industry Organizes toFight the Threat of Anti- Dumping Action (CASE STUDY) Group no. 14 MCC .TYBMS (2011)
  18. 18.  The Ad Hoc Shrimp Trade Action Committee (ASTAC), an association of shrimp farmers in eight southern states of the United States, filed an anti- dumping petition against six countries — Brazil, China, Ecuador, India, Thailand and Vietnam. The petition alleged that these countries had dumped their shrimps in the US market. on 21 January 2004 the US Department of Commerce (DOC) announced the initiation of anti-dumping investigations against the six countries. Group no. 14 MCC .TYBMS (2011)
  19. 19.  The six named countries accounted for 74% of shrimp imports in the US market. Imports from the six countries increased from 466 million lbs. in 2000 to 650 million lbs in 2002. Import prices of the targeted countries had dropped by 28% in the previous three years. The average unit value of the targeted countries in 2000 was $3.54; this had fallen to $2.55 in 2002, on a headless, shell-on equivalent basis. Group no. 14 MCC .TYBMS (2011)
  20. 20.  The average dockside price for one count size of gulf shrimp dropped from $6.08 to $3.30 per pound from 2000 to 2002. The United States was the most open market in the world. High tariff rates in other large importing countries provided a powerful incentive for exporters to increase shrimp shipments to the United States. Group no. 14 MCC .TYBMS (2011)
  21. 21.  Commerce Minister on the possible threat to Indian shrimp exports to the United States, SEAI(Seafood Exporters Association of India (Kochi, Kerala, India). and MPEDA(The Marine Products Export Development Authority) went into action. Group no. 14 MCC .TYBMS (2011)
  22. 22.  First, there are specific variations between the shrimp caught off the south-west coast of the United States and in Indian waters, so that prices are bound to be different. India’s shrimp exports are predominantly of black tiger and scampi varieties which are not cultivated in the United States’, according to the president of SEAI. Group no. 14 MCC .TYBMS (2011)
  23. 23.  Second, while fishing in the United States is a capital-intensive activity calling for major investment, in India shrimp capture is carried out with a very low level of capital and requiring hardly any investment. This makes the cost of production considerably lower in India compared with that for shrimp sea-caught off the US coast. Group no. 14 MCC .TYBMS (2011)
  24. 24.  Department of Commerce observed that India had a strong case as India was exporting mainly ‘tiger shrimps which are not found there and that too, in unprocessed form’. Noting that 80% of shrimp consumption in the United States is met through imports. Group no. 14 MCC .TYBMS (2011)
  25. 25.  Shrimp exports to the United States had come almost to a standstill due to the uncertainty regarding the contingent applicability and incidence of the anti- dumping duty. Group no. 14 MCC .TYBMS (2011)
  26. 26.  The shrimp industry in India shouldn’t have been focused on only one or two major markets for growth. Previously it was Japan and during the last few years, it has been the United States. Group no. 14 MCC .TYBMS (2011)
  27. 27.  India learnt the importance of diversification. A. J. Tharakan, the SEAI president, has said that they are exploring alternative markets to make up for the loss of the lucrative US market. Group no. 14 MCC .TYBMS (2011)
  28. 28.  “On 27th Jan, 2010 exports to US were resumed.”Business line newspaper– 1st Feb, 2010 Group no. 14 MCC .TYBMS (2011)
  29. 29. Group no. 14 MCC .TYBMS (2011)