ANTI DUMPING LAWS

DUMPING:-


"Dumping occurs when foreign producers sell their products to an importer in the 
domestic market at prices lower than in their own national markets, or at prices below 
cost of production, the sale or importation of which injures or threatens to injure a 
domestic industry producing like or comparable products or retards the establishment of 
a potential industry. It is a form of price discrimination between two national markets."


ELEMENTS OF DUMPING:-

There are four (4) elements of dumping, namely:

· Like Product  -  product produced by the domestic industry which is identical
or alike in all respects to the article under consideration, or in the absence of such a product,
another product which, although not alike in all respects, has characteristics closely resembling
those of the product under consideration.

· Price Difference  -  amount by which the normal value (the price prevailing in the
exporting country) exceeds the export price (selling price to an importer
in the Philippines).   

· Injury -  means material injury to a domestic industry, threat of material injury or
material retardation of the establishment of a domestic industry. Injury test must
be based on positive evidence and shall involve an objective examination of both
(a) the volume of the dumped imports and the effect of dumped imports on prices in the
domestic market for like product, and (b) the consequent impact of these imports on
the domestic producers of such products.

· Causal Link  -  refers to a finding that the material injury suffered by the domestic industry is the
direct result of the importation of the dumped product.  It must be clear that the injury
suffered is directly attributable to the alleged dumping.  

ANTI DUMPING DUTY  :-

        Where any article is exported from any country or territory to India at less than its normal value then upon the importation of such article to India the central Govt. may be notification in the official gazette impose an anti dumping duty not exceeding the margin of dumping in relation to such article. For purpose of identification, assessment and collection of Anti Dumping Duty on dumped articles and for determination of injury, the Govt. has appointed Additional Secretary to the Govt. of India Ministry of Commerce as designated Authority for purpose of above rules. 

PRACTICE AND PROCEDURE     

          The anti-dumping proceedings are initiated based on an application made by or on behalf of the concerned domestic industry to die Designated Authority in the Department of Commerce for an investigation into alleged dumping of a product into India. Under the Rules a valid application can be made only by those petitioners/domestic producers who expressly support the application, and account for more than 25% of total domestic production of the like article in question. The application is deemed to have been made by or on behalf of the domestic industry, if it is supported by those domestic producers whose collective output constitutes more than fifty- percent of the total production of the like article produced by that portion of the domestic industry expressing either support for or opposition as the case may be, to the application.

         However, such producers may exclude those who are related to die exporters or importers of the alleged dumped article or are themselves importers thereof. In other words, a domestic producer who is related to the exporter or importer of die dumped article or is himself an importer thereof may not be treated as part of the domestic industry even if he files or supports an anti-dumping petition.

                             The interested parties to an dumping investigation include:

                             The domestic industry’ on whose complaint the proceedings are initiated;

                             The exporters or the foreign producers of the like articles

                              subject to investigatioN

;

                             The importers of the same article allegedly dumped into India;

          The Government of the exporting country/countries.