
Anti Dumping
Anti-dumping law in India is designed to protect domestic industries from unfair trade practices, particularly the dumping of goods at prices below their normal value in the exporting country. Dumping, in general, refers to the sale of goods in a foreign market at prices lower than their production cost or the price in the home country, which can cause material injury to the domestic industry. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) regulate anti-dumping measures, allowing countries to impose duties if dumping causes injury to local producers.
In India, anti-dumping duties are imposed by the Central Government, following investigations by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry. The DGTR investigates petitions from domestic manufacturers, collects data, verifies information, and calculates the dumping margin—the difference between the export price and the normal value. If dumping and material injury are proven, the government can impose anti-dumping duties for up to five years, in line with WTO norms. These duties are meant to offset the harm caused by dumped imports and ensure fair competition for domestic industries.
Recent examples include anti-dumping duties on products from China, such as chemicals, steel, plastic processing machines, and solar cells, aimed at protecting Indian manufacturers. The process involves strict procedures, including provisional duties, definitive duties, and periodic reviews to ensure compliance and effectiveness. The remedies provided under Indian law help domestic industries counteract the adverse effects of dumping, promote fair trade, and safeguard economic interests.
Indlex Solicitors & Advocates’ team of experts is well-versed in anti-dumping laws and remedies, offering up-to-date advice on tariffs, implications, and effective presentations before relevant authorities to protect clients’ interests in such cases.
