Anti Dumping

Anti-Dumping & Antisubsidy measures : FAQs

Q.1. What is the significance of anti dumping measures in India in the context of lifting of QR?

Ans. India is currently in the process of phasing out its quantitative restrictions regime in relation to imports. With removal of licensing restrictions on imports, there has been a tendency on the part of several trading partners of India to resort to dumping of their goods of different kinds into India, thereby creating a situation of unfair competition in the domestic market whereby the domestic industry has suffered injury.

• To address such a scenario of unfair trade, and to provide the requisite remedy to the domestic industry against injury caused by such dumping, the anti dumping measures have assumed a great deal of significance.

• The anti dumping measures do not aim at providing protection to the domestic industry per se. These are only remedial measures for removal of injury to the domestic industry caused by the dumping of goods. The object behind such measures is to re-establish fair competition and to provide the domestic industry a level playing field.

• The paramount objective of the multi-lateral trade regime of WTO is to establish free and fair international trade. With removal of QRs, India has moved towards the regime of free trade. At the same time, anti dumping measures can be applied, where warranted, in the interest of fair trade.

Q. 2. There are number of cases in which anti dumping duty is imposed on imports of goods from China. Does India specifically target China for application of anti dumping measures? Is it due to China’s non-membership of WTO that India has so many anti dumping cases against China?

Ans. The anti-dumping investigations in India are conducted under the national law as enshrined in the Customs Tariff Amendment Act, 1975, as amended in 1995, which is in consonance with the provisions of WTO. These measures are country neutral and the rules apply uniformly to China as to any other country.

There is no intention on the part of DGAD or the Government of India to specifically target China for application of anti-dumping measures. The principles and procedures prescribed under the law are fully complied with in the cases involving China as in the cases involving other countries.

The number of cases against China has got nothing to do with its not being a member of WTO. The anti-dumping action initiated by the Authority is governed by our national law and rules framed there under. India has extended Most Favoured Nation (MFN) treatment to China, which enjoins upon India the obligation of non-discriminatory treatment of China vis-à-vis other trading partners including WTO members. Thus the question of discriminating against China does not arise so far as anti-dumping measures are concerned.