Anti Dumping Duty
Globally the economy of India is among the finest and energetically developing economies. Import and export are fundamental aspects of any economy. Indian Government generally focuses more on the export, however, in order to compensate the domestic demand often import goods from other countries. In the process, the Government is faced with two main challenges, the quality of imported goods, and the second is the price of imported goods. Indian Government formulates policies or implements administrative measures to ensure that the imported goods are not of sub-standard quality and also the prices of the goods are not manipulated/understated causing harm to the domestic industry. One such measure is the levying of anti dumping duty.
What is Anti Dumping Duty?
Anti dumping duty in India is levied by the Indian Government when it has reasons to believe that exporting countries are selling the goods at a price less than its normal price. Article VI of the General Agreement on Trade and Tariff, 1994 defines dumping as the introduction of a product into the commerce of another country at a price less than its normal price. The Customs Tariff (Recognition, Evaluation, Grouping of Anti-dumping duty on imported commodity and for resolution of problem) Rules, 1995 provides the legal structure & policy in India for initiation of anti-dumping proceedings and also the imposition of anti-dumping duties. Directorate General of Trade & Remedies (‘DGTR’) under the Ministry of Commerce and Industries initiates the anti-dumping proceedings either suo-moto or based on a complaint filed by the Domestic Industry that a particular product from a particular country is being imported at a price less than its normal price.
Considerate of the fact that there may be a variety of reasons for the reduction in price like increase in capacity, availability of raw material, etc. DGTR issues notice to each interested party whether in India or outside India to provide reasons along with documentary shreds of evidence supporting the reduction of prices. Based on the information received from each interested party DGTR investigates the reasons for the reduction of prices and concludes its proceedings by recommending the Indian Government to levy the anti-dumping duties.
How ASC Helps?
Anti-dumping proceedings are very complex proceedings that require skills to understand the reasons for the reduction of prices and also the legal framework behind such proceedings. ASC has experts like chartered accountants, lawyers, etc. who have experience in assisting all the industries in such anti-dumping proceedings. Hence we assist & provides thorough services to exporters, importers, and the domestic industry in the following ways:
- Identification of products being dumped by the exporter countries on behalf of the domestic industry.
- Preparation of application, organizing, and collating the data for the last three years to check the prices of imports and filing of the same requesting DGTR to initiate anti-dumping proceedings on behalf of the domestic industry.
- Assisting exporters and importers of the goods in question to identify the reasons behind the reduction of price.
- Assisting exporters and importers to organize and maintain the data to support the import price.
- Assisting exporters and importers to file their response to DGTR and provide timely support to DGTR.
Also, Check "Export Benefit Schemes"
FREQUENTLY ASKED QUESTIONS
Anti-dumping duty is a type of tax levied by the Indian government on the import of certain goods that causes injury to the domestic industry. These goods are exported in bulk to India at lower prices which makes it tough for the domestic industry to compete with. Hence, anti-dumping duty ensures that the prices of such imported goods are at par with industry standards.
The government of the importing country imposes anti-dumping duty after an investigation by the relevant authorities.
Anti-dumping duty is calculated based on the difference between the export price of the goods and their normal value, which is usually the price in the domestic market of the exporting country.
The government of the foreign nation might support certain industries in their nation to manufacture and export goods. This support is usually extended in the form of tax concessions that directly helps reduce the prices, thus allowing them to sell at lower prices as compared to their competitors.
The purpose of anti-dumping duty is to protect the domestic industry from unfair competition from foreign producers who are dumping their products at a price lower than their cost of production.
The levy of anti-dumping duty in India can be initiated by the Directorate General of Trade Remedies (DGTR). Any domestic industry or an interested party may file an application with the DGTR to initiate the levy of anti-dumping duty.
The anti-dumping duty is usually levied for a period of 5 years. However, it can be revoked earlier at the discretion of the government.
Anti-dumping duty levied on imported goods directly increases their prices. This discourages the import of such goods paving the way for the domestic industry to compete with such players.
The consequences of not paying anti-dumping duty can include seizure of the goods, fines, and other penalties.
