ANTI-DUMPING
DUTY - ECONOMY
News: Commerce
Ministry recommends anti-dumping duty on Chinese glass imports for 5 years
What's
in the news?
●
The Commerce Ministry has recommended
anti-dumping duty of up to $243 per tonne of import of Chinese glass used in
home appliances with a view to guard domestic players from cheap inbound
shipments from the neighbouring country.
Anti-dumping
Duty:
●
Anti-dumping duties are imposed when it is
conclusively proved that a particular item is being exported at a price lower than what is prevailing in the domestic
market of the exporter and is leading to disruption in the domestic market,
injuring the local producers
●
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.
Go
back to basics:
Dumping:
●
Dumping is a process where a company
exports a product at a price lower than the price it normally charges in its
own home market.
●
The duty is aimed at ensuring fair trading
practices and creating a level-playing field for domestic producers vis-a-vis
foreign producers and exporters.
●
The duty is imposed only after a thorough
investigation by a quasi-judicial body, such as Directorate General of Trade
Remedies, in India.
●
The imposition of anti-dumping duty is permissible under the World Trade
Organization (WTO) regime.
Countervailing
Duty:
●
It is a specific form of duty that the
government imposes to protect domestic producers by countering the negative
impact of import subsidies.
●
CVD is thus an import tax by the importing
country on imported products.