Anti-Dumping duty
- June 17, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Subject: Economy
Context:
Finance Ministry has extended of existing anti-dumping duty on Nylon Tyre Cord Fabric (NTCF) imports from China by six months
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.