Title : ANTI DUMPING DUTY

Date : Dec 28, 2021

Description :

GS III

 

Topic à Indian Economy

 

• What is Dumping:

 

• Dumping occurs when a country exports commodities to another country at a cheaper price than it charges in its own domestic market.
• This is a deceptive trade activity that has the potential to distort international trade.

 

• Objective:

 

• The imposition of anti-dumping duties is a response to the situation created by the dumping of products and the resulting trade distortion.
• Anti-dumping tariffs can restrict the international rivalry of domestic enterprises producing similar items in the long run.
• It's a levy imposed by a domestic government on foreign imports that it deems are priced below fair market value.
• The World Trade Organisation allows anti-dumping measures to be used as a tool for fair competition.
• Countervailing Duties are not the same as Antidumping Duties.
• Countervailing duty is a customs duty on goods that have received government subsidies in the originating or exporting country, whereas ADD is a customs duty on goods that have received government subsidies in the originating or exporting country.

 

• Anti-dumping Duty Provisions at the WTO:

 

• Anti-dumping duties are valid for five years from the date of imposition unless they are removed sooner.

 

• Sunset Review:
• Through a sunset or expiry review examination, it can be prolonged for another five years.
• A sunset review, also known as an expiry review, assesses the need for a program or agency to continue to operate. It provides for an evaluation of the program's or agency's effectiveness and performance.
• A review of this nature can be initiated on its own or in response to a properly documented request from or on behalf of the domestic industry.

 

• Source à The Hindu à 27/12/21 à Page Number 10

Tags : World Trade Organisation, international trade