Before they make a final determination of whether dumping has occurred, the government authorities must inform all interested parties of the essential facts under consideration, giving them sufficient time to defend their interests. The producers of the country never want that com­modities should be imported from abroad. Causal Link: As regards the establishment of material injury, it needs to be demonstrated that there is a causal relationship between the article that is alleged as being dumped and the injury it seeks to cause to the domestic industry manufacturing or producing like product. Hence exporting countries including China resorted to other mechanisms to support its exports. the purpose of free trade. It then explains how a “fair comparison” is made between the two. The constructed price should also give allowances for factors such as different levels of trade, conditions and terms of sale, taxation, quantities, physical characteristics, and other matters demonstrated to affect price comparability. The WTO is the only International body dealing with the rules and regulations of trade between nations. The constructed price should have allowances for costs including duties and taxes, incurred between the importation of the product and its resale to an independent purchaser, as well as for reasonable profits accruing there from. Anti-dumping measures are unilateral remedies (the imposition of anti-dumping duties on the product in question) that the government of the importing country may apply after a thorough investigation has determined that the product is, in fact, being dumped, and that sales of the dumped product are causing material injury to a domestic industry that produces a like product. With the national Governments providing adequate subsidies to the manufacturing concerns, low-cost production was achieved by the exporters. Anti dumping duty is not applicable for imports made by export oriented units unless the intention to levy on their imports is specifically stated in the notification. Does dumping mean cheap or low priced imports? Dumping is said to occur when the goods are imported into India is less than the normal value of like articles sold in the domestic market of the exporter OR when the goods are exported by a country to another country at … The investigations regarding anti-dumping duty are under Sections 9A of the Customs Tariff Act, 1975. Do you have a 2:1 degree or higher? Which effects prevail can shed important lights on the question of whether an FTA can be a stumbling … You can also contact the Designated Monitoring Officer at the following address: Office of Antidumping/Countervailing Duty Policy. No plagiarism, guaranteed! The Agreement established a Committee on Anti-dumping Practices, composed of representatives of each WTO member country. The examples of such benefits have changed the course of human history for several centuries. However, the investigation would not be initiated when domestic producers expressly supporting the application account for less than 25% of total production of the like product produced in the domestic industry of the importing country. Initiation: the designated authority, after examining the accuracy and adequacy of the evidence regarding dumping, injury and causal link, issues a public notice initiating an investigation. The material injury or threat thereof cannot be based on mere allegation, statement or conjecture. The importing country is allowed to take action against dumping, when: Dumping is not only said but also shown to have taken place by the importing country; On the basis of dumping, being said to exist, the importing country is able to establish from reliable information and considering all possible factors that such dumping has actually caused or could cause, material injury to its domestic industry; and. The authorities need to evaluate all relevant economic factors having bearing upon the state of the domestic industry. The application must provide evidence of dumping, injury and a causal link between the two. Further, such duty will remain in force for a period not exceeding six months but which may be extended to nine months under certain circumstances. Consequent to being dumped, it has caused or the effect of causing material injury to manufacturers of like product in India. Safeguards in the form of tariff increases or quantitative restrictions were earlier used to counter the increased imports due to dumping, but nowadays such measures invite compensation payment to trading partners in appropriate cases. The EU's initiative was followed by a number of countries including Brazil, China, Ecuador, Japan, Korea, Mexico, Thailand and Vietnam who lodged similar cases. India has extended anti-dumping duty on clear float glass imported from China by two months, till February 6, 2021. covered by the anti-dumping duties. This situation is referred to as targeted dumping. Our academic experts are ready and waiting to assist with any writing project you may have. Material retardation of the establishment of a domestic industry. An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Company Registration No: 4964706. The European Commission is responsible for investigating dumping claims and imposing measures. The duty on float glass of thickness between 2 mm to 12 mm of clear as well as tinted variety save green but not including reflective glass, processed glass meant for decorative, industrial or automotive purposes, has been extended since the government had not come to … The trans-national trade has always had its effect on the international relations mainly because it took the a zero-sum game form rather than the win-win situation, thus going against the theories advanced by Adam Smith, Frederick von Hayak and Milton Friedman. On the 14 th of November 2003, South Africa promulgated their anti-dumping This paper examines the effects of FTAs on anti-dumping activities based on comprehensive empirical analysis. The Indian industry must be able to show that dumped imports are causing or are threatening to cause material injury to the Indian ‘domestic industry’. Thus, the purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re- establish fair trade. Applications can be made by or on behalf of the concerned domestic industry to the Designated Authority in the Ministry of Commerce for an investigation of any alleged dumping. A PDF reader is available from Adobe Systems Incorporated. The negotiations are scheduled to be completed by January 1, 2005. These circumstances may arise in case of: Internal transfers i.e. The investigations pertaining to dumping are governed by the amended provisions of Customs Tariff act of 1975. It contains a “sunset” provision that provides that the duty will be terminated five years from the date of its imposition unless the government authorities determine in a review that termination of the duty would lead to continuation or recurrence of dumping and injury. Difference between the price in the exporter’s domestic market (called normal value) and the price charged for export to the subject nation, in the absence of the price in the domestic market. 19th May 2017 However, the construction of the export price should be reasonable and based on facts and circumstances, which are warranted in each case. The Agreement ensures that all proceedings will be transparent and that all interested parties have a full opportunity to defend their interests. This led to the scenario known as ‘dumping’ and enraged importing countries, mainly in the West, used customized anti-dumping measures to counter this wave of dumping. WTO, seen from the past, intends to achieve the stated objectives by one or more of the following mode or means: Acting as a forum for trade negotiations and settlement of trade disputes, Assisting developing countries in trade policy issues, through technical assistance and training program, Co-operating with other international organization. Dumping leads to the erosion and in some cases the disappearance of industries in markets where dumping is occurring for reasons unrelated to the relative competitiveness of those industries—put most simply, dumping enables less efficient firms to prevail over more efficient firms in international competition. The investigations against dumping are required to be normally initiated on the basis of a written request submitted “by or on behalf of” a domestic industry and it needs to be supported by those domestic producers whose collective output constitutes more than 50% of the total production of the like product. To this end we strive for an efficient Internal Market, a liberalised common trade policy in the EU and an open and strong multilateral trading system, especially within the World Trade Organization (WTO). Disclosure of Information: The designated authority, based on the submissions and evidence gathered during the investigation and verification would proceed to make the determination of the final findings and formulate the basis thereof. Export Oriented Units specifically include: “Free trade zone” means a zone which the Central Government may, by notification in the Official Gazette, specify in this behalf; “Hundred per cent export-oriented undertaking” means an undertaking which has been approved as a hundred per cent export-oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries Act, 1951; “Special economic zone” means a zone which the Central Government may, by notification in the Official Gazette, specify in this behalf. This is an unfair trade practice which can have a distortive effect on international trade. The EU has a number of trade defence instruments that it can use to fight unfair trade practices, which includes anti-dumping legislation. Indirect exports: If products are not imported directly from the country of manufacture but from an intermediate country, the normal value is to be determined on the basis of sales in the market of the originating country unless this may result in an inappropriate or impossible comparison. Any information contained within this essay is intended for educational purposes only. 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