Anti Dumping Duty
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The document discusses anti-dumping duty, which is a protective tariff imposed on foreign imports that are priced below fair market value. Dumping occurs when goods are exported at a price lower than their normal value in the exporting country's domestic market. If the export price is lower than the normal value, it constitutes dumping. Anti-dumping duty aims to rectify trade distortions caused by dumping and its impact on domestic prices and unemployment in the importing country. The legal framework for anti-dumping duty in India is provided in the Customs Tariff Act and related rules. Recent news is mentioned that India has decided not to impose anti-dumping duties on imports of stainless steel products from 15 countries.
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This document discusses international trade barriers and facilitators. It examines arguments for protectionism like protecting infant industries or excess labor. Tools of government protectionism include tariffs, quotas, import licenses and voluntary export restraints. The document also outlines international organizations that facilitate trade, like the WTO and World Bank. Finally, it describes trade facilitators such as foreign trade zones and government agencies that promote international business.
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Absolute advantage refers to a country's ability to produce a good at a lower opportunity cost than other countries. Countries gain from specializing in what they have an absolute advantage in and trading. Comparative advantage refers to specializing in what a country has the lowest opportunity cost in producing. Free trade allows countries to specialize according to comparative advantage, increasing global output. Protectionism involves restricting imports to protect domestic industries but disadvantages consumers and reduces overall welfare.
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The document discusses various types of tariff and non-tariff barriers that governments use to control and restrict international trade, such as tariffs, quotas, standards, and dumping practices. It also examines arguments for and against protectionism. Finally, it provides an overview of international economic organizations that aim to promote free trade such as the WTO, NAFTA, and the EU.
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Anti Dumping Duty
- 1. Submitted to : Dr . Mervin Felix Caleb Submitted by : Abhishek Reddy Mallipeddi
- 3. Anti Dumping Duty ⊡ An anti-dumping duty is a protective tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value/normal value ⊡ This value could go up to dumping margin ⊡ Exporter and country specific 3
- 5. What is Dumping ⊡ Dumping means export of goods by one country to the market of another country at a price lower than the normal value. ⊡ If the export price is lower than the normal value, it constitutes dumping. 5
- 6. Dumping ⊡ Normal Value : Normal value is the price at which the goods under complaint are sold in the domestic market of the exporting country. ⊡ Export price : Means the price at which it is exported ⊡ Dumping Margin: The difference between the Normal value and the export price of the goods. It is generally expressed as a percentage of the export price. 6
- 7. Dumping Example : ⊡ Normal value US$ 110 per kg. ⊡ Export price US$ 100 per kg. ⊡ There is dumping in this case as export price is lower than normal value and dumping margin in this case is US$ 10 per kg., i.e. 10% of the export price. 7
- 8. Dumping Why do Dumping occur? ⊡ Unfair subsidies ⊡ Over production ⊡ Un saleable goods Effects of Dumping : ⊡ Impacts prices in importing country ⊡ May lead to unemployment 8
- 9. Anti Dumping Duty Need for Anti Dumping Duty : ⊡ Anti dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. 9
- 10. Anti Dumping Duty Legal frame work of Anti Dumping Duty : Sections 9, 9 A, 9 B and 9 C of the Customs Tariff Act, 1975 as amended in 1995 and the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 and Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 10
- 11. Custom Vs Anti dumping 11 Anti Dumping Duty Customs Duty To guard against unfair trade practices Means of rising revenue and overall development of economy Trade remedial measures Trade policies of Govt Not necessary in nature Necessary exporter and country specific Universally applicable to all imports as per country of origin and exporter
- 12. Anti Dumping Duty Recent news : ⊡ The central government has decided not to impose the anti-dumping duty on imports of flat rolled products of stainless steel from China, Korea, European Union, Japan, Taiwan, Indonesia, USA, Thailand, South Africa, UAE, Hong Kong, Singapore, Mexico, Vietnam, and Malaysia 12
- 13. Anti Dumping Duty Recent news : ⊡ The commerce ministry’s investigation arm DGTR in December last year recommended imposition of the duty for five years on the product after concluding in a probe that domestic industry was impacted due to dumping of the goods from these countries. 13
- 14. Anti Dumping Duty Recent news : ⊡ The Directorate General of Trade Remedies (DGTR) suggested the duty in the range of USD 67 per ton to USD 944 per ton. The probe was conducted following a complaint by the domestic industry. 14
- 15. References ⊡ https://www.dgtr.gov.in/faq ⊡ https://www.investopedia.com/terms/a/anti-dumping-duty.asp ⊡ https://www.financialexpress.com/economy/no-antidumping-duty-on-flat- rolled-steel-products-from-15- countries/2291036/?utm_source=whatsapp_web&utm_medium=social&ut m_campaign=socialsharebuttons ⊡ https://www.google.com/search?q=what+is+dumping+in+economics&rlz= 1C1CHBF_enIN817IN818&oq=what+is+dumping+&aqs=chrome.1.69i57j 0l9.8229j0j7&sourceid=chrome&ie=UTF-8 15