What are anti-dumping rules?
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. In the long-term, anti-dumping duties can reduce the international competition of domestic companies producing similar goods.
Who can impose anti-dumping duty?
Ans. Under the WTO arrangement, the National Authorities can impose duties upto the margin of dumping i.e. the difference between the normal value and the export price. The Indian law also provides that the anti dumping duty to be recommended/levied shall not exceed the dumping margin.
How do you calculate anti-dumping duties?
The calculation of antidumping duty is done on the basis of difference between FOB price of importing country and the market price of similar goods in exporting country or other countries.
What is the name of the anti-dumping law?
Opinions differ, but many governments take action against dumping in order to defend their domestic industries. The WTO agreement does not pass judgement. Its focus is on how governments can or cannot react to dumping — it disciplines anti-dumping actions, and it is often called the “Anti-Dumping Agreement”.
Why is dumping illegal?
The waste is dumped to avoid disposal fees or time and effort required for proper disposal. It is illegal to allow open dumping on your property. Property owners sometimes try to benefit financially by charging a fee for someone to dump waste on their property. This is illegal.
What are the types of dumping?
Types of Dumping
- Sporadic dumping. Companies dump excess unsold inventories to avoid price wars in the home market and preserve their competitive position.
- Predatory dumping. Unlike sporadic dumping, which is occasional, predatory dumping is permanent.
- Persistent dumping.
- Reverse dumping.
How do you calculate dumping?
Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country. Thus, in the simplest of cases, one identifies dumping simply by comparing prices in two markets.
What are the consequences of illegal dumping?
Aside from being an eyesore, illegal dumping wreaks havoc on the environment. As previously mentioned, chemicals from wastes and certain appliances can leach into soil and local waterways causing damage to plants, wildlife, and water quality. Other issues include increased risk of flooding and forest fires.
What is the purpose of dumping?
The objective of dumping is to increase market share in a foreign market by driving out competition and thereby create a monopoly situation where the exporter will be able to unilaterally dictate price and quality of the product.