Anti-Dumping Duties

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In the three years there has been a noticeable rise, in anti-dumping duties imposed by the Finance Ministry in India. More than a third of these duties were aimed at products made by either one producer or two producers mainly in the chemical sector. A significant portion of these duties 60% were imposed on goods originating from China while 26% targeted products from China and at least one other country.

The Directorate General of Trade Remedies (DGTR) suggested dumping duties in 92 cases with about 33% of these involving products made by a single domestic producer or at most two producers. Interestingly the Central Board of Indirect Taxes and Customs (CBIC) approved recommendations for dumping duties in half of these cases.

The Finance Ministry has been more open, to accepting ADD recommendations with an acceptance rate of 86% in FY24 from 42% in previous years despite concerns about how it may affect other industries.

Anti-Dumping Duties (ADD) are tariffs imposed by a government on imported goods that are being sold at a price lower than their fair market value, a practice known as "dumping." The purpose of anti-dumping duties is to protect domestic industries from unfair competition by ensuring that imported goods are not sold at artificially low prices, which could harm domestic producers. These duties are typically levied by the importing country's government following an investigation by relevant authorities to determine if dumping has occurred and if it is causing or threatening to cause material injury to the domestic industry.

The reason for implementing ADDs is to combat dumping, which when goods are exported at prices below their value—a practice deemed unfair. DGTR investigates cases. Suggests ADDs if there’s proof of significant harm to local industries. CBIC has three months to either approve or reject DGTRs recommendations.