- August 30, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Major textile bodies has appealed to the Centre to remove anti-dumping duty on Viscose Staple fibre (VSF) to create a level playing for the entire textile value chain.
- 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.