Anti-Dumping Duty on Steel Imports from China

Anti-Dumping Duty on Steel Imports from China

The DGTR has decided to initiate a probe into the matter, following complaints from domestic industry that alleged dumping of certain steel products imported from China damaged their businesses.

Directorate General of Trade Remedies

Directorate General of Trade Remedies (DGTR) is an apex national authority under the Ministry of Commerce and Industry for administering all trade remedial measures including anti-dumping, countervailing duties and safeguard measures. The Directorate is headed by a Director-General assisted by Deputy Director Generals, Joint Secretaries and other staff posted in Delhi.

It provides trade defence support to the domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.

Anti Dumping Duty:

Anti Dumping Duty (ADD) refers to the procedure for calculating and collecting duties on goods that are imported into India at a price below market value in its own home market. The policy is implemented by charging duty on such goods until their normal value reaches the dumping price.

Imposition of Anti-dumping duty is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect.

It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.

The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organisation.

WTO's Provisions Related to Anti-Dumping Duty:

A anti-dumping duty may be imposed for a period of five years. A basic rate may be fixed in such cases, or a single rate may be applied to all countries concerned. In no case, however, shall an anti-dumping duty exceed the amount by which the normal value exceeds the export price (dumping margin).

It can be extended for a further period of five years through a sunset or expiry review investigation. A Sunset review/ expiry review is an evaluation of the need for the continued existence of a program or an agency. It allows for an assessment of the effectiveness and performance of the program or agency.