ANTI DUMPING DUTY

ANTI DUMPING DUTY

Subject : Economics

Context : The Finance Ministry has extended the validity of anti-dumping duty on certain seamless tubes and pipes imported from China till October 31.

Concept :

• 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.
• 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.