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Anti-dumping Duty

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March 26, 2025

Syllabus

Prelims – Current events of national importance

Mains – GS III | Economic Development | Issues related to development | Changes in industrial policy and their effects on industrial growth.

Why in News?

India has recently imposed anti-dumping duties on 5 Chinese goods following recommendations made by the Directorate General of Trade Remedies (DGTR), the investigation arm of Ministry of Commerce.

  • Anti-dumping duty-imposed Goods
    • Soft Ferrite Cores (used in electric vehicles, chargers, and telecom devices) – 5 years.
    • Certain thickness of vacuum insulated flask – 5 years.
    • Aluminium foil (for 6 months)
    • Trichloro Isocyanuric Acid (chemical used for water treatment) – 5 years.
    • Poly Vinyl Chloride Paste Resin
  • These products were found to be sold in India at prices below normal market value.

China is India's second largest trading partner.

  • Anti-dumping duties It is a tariff imposed on imported goods that are priced below their fair market value in the exporting country, aiming to protect domestic industries from unfair competition.
  • Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports.
  • Probes are conducted periodically to check for the impact of cheap imports on domestic industries.
  • A product is considered to be dumped when a producer exports his product at a price lower than its value in its domestic market.
  • It is imposed as per multilateral regime of World Trade Organization (WTO), to ensure fair trading practices and a level-playing field for domestic producers’ vis-a-vis foreign producers and exporters.
  • Article 6 in the General Agreement on Tariffs and Trade (GATT) allows countries to take action against dumping.

Reference

Hindustan Times | What are anti-dumping duties?

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