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Title : ANTI DUMPING DUTY
Date : Dec 28, 2021
Topic à Indian Economy
- 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.
- 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