All you want to know about Anti-Dumping Duty

All you want to know about Anti-Dumping Duty. Find Complete Details for Anti-Dumping Duty. In this article you can find all details related to Anti-Dumping Duty like – What is Anti-Dumping Duty, Meaning of Anti-Dumping Duty, Explanation for Anti-Dumping Duty, What is Margin of Dumping etc. Recently we provide complete details for What is Duty drawback and cases when it is not applicable. Now you can scroll down below and find “All you want to know about Anti-Dumping Duty”

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All you want to know about Anti-Dumping Duty

Introduction :-

This article is particularly based on the Duty which is charged in excess of Normal Customs duty for the exporters who are from outside India and are trying to sell the goods in India at a lower price than prevailing in the market. This type of Duty is also permissible by World Trade Organisation, which looks after the unfair trade practices in the world and find the solution for the unfair portion. I have explained you further in Detail.

Explanation :-

Now first we will discuss about the word “Dumping”. The word Dumping means export of goods from one premises/country to another premises/country such that the price is lower than prevailing in such another country, and the duty which is liable to be paid by exporter is known as Anti-Dumping Duty.

The only reason to establish or impose this duty is to safeguard/protect/give relieve to the Domestic Industry players, who may be ruined if this exporters are coming and selling at a low cost. This practice would also not lead to fair trade practice and thus there has to be some alternative for such practice. As a result this will purely discourage these practice and will result in domestic players will also compete the exporter in relation to price as well as quantity.

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The whole and sole responsibility to impose this duty is on “Directorate General of Anti Dumping and Allied Duties”, in which the main person handling all the position and having the sole right is the “Designated Authority”. This type of Duty if liable for imposition will be imposed by bringing a notification to the official gazette of India. Designated Authority shall be having the power to conduct the Anti-Dumping Investigation, through which only we come to know that should Anti-Dumping Duty be liable on this product.

These Duty will be charged over and above the Normal Customs Duty. The Credit for the Anti-Dumping Duty paid during the year will not be available to the assessee and it would be forming part of the cost of the assessee.

What is Margin of Dumping ?

Margin of Dumping refers to difference between the market price of that product prevailing in the market and the export rate at which it is exported.

For Eg. If Product X is exported to India. The Export price of the product is Rs. 1000. The market price in India is Rs. 1250. Then the margin of Dumping would be Rs.250 (1250 – 1000)

There are many cases in which the Anti Dumping Duty can be avoided. They are :-

  1. When there is no sufficient proof for Dumping.

Eg. When product X is exported to India at Rs 1000 but the current market price is Rs. 1250. Now finding to reasons it was found that there was only one player in the market selling and he was charging higher than the normal price. So there is no proof for Dumping.

  1. When margin of Dumping is less than 2% of export price

Eg. Export price = Rs 1000 , Market price = Rs 1010

Here, Margin of Money = Rs 10 (1010 – 1000), i.e. 1 % of the export price, so there is no need for antidumping duty to be charged

  1. If it obtained in writing from the concerned person who started or requested to start the anti dumping investigation.
  2. When the imports for a particular product in a particular country is less than 3% of the total imports of the like article.
  3. If the loss caused to the Domestic player is very negligible. The word negligible may vary from person to person.

It does not always mean that the dumped products exported to a particular country are cheap products, but it only mean that in relative sense that it means related to or in accordance to that market price and not to the capability of the person to buy it.

The basic difference between the normal custom duty and anti dumping duty is that the anti dumping duty charged is of intention to avoid unfair trade practices while that of normal is to raise the income and development of the country.

Thus Anti-Dumping Duty can be called a SPECIAL KIND OF DUTY, as it not applicable to each and every kind of industry but only to specific industry.

Must Read – Some Important Definitions Under Customs Act, 1962

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