Anti-Dumping Duty: What It Is, Example, & Calculations

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Anti-dumping duty (ADD) on imports is a necessary step taken by the government to safeguard the financial interests of local manufacturers and traders. The process is complex but essential in the current times as businesses are expanding globally and entering different markets trying to capture a major share. Statistics reveal that India has filed around 20% of all the global anti-dumping cases. This is quite high in comparison to its global import share which stands at 2%. But what exactly is anti-dumping duty and why is it so important for countries? What are its estimation methods? Let’s find out! We have explained the concept with examples for better understanding! As a business owner, you must understand this.

Anti-Dumping Duty on Imports
Anti-Dumping Duty: What is It?
To understand what is Anti-dumping duty, it is important to learn what is dumping. Dumping refers to the practice of selling goods in a foreign market and pricing them much less than the local traders. This practice often leads to a decline in the sales of domestic brands. They struggle hard to compete with those low prices but largely fail to do so. It leads to the closure afghanistan phone number list of local brands and the loss of jobs for thousands of workers engaged in domestic factories. This is where the anti-dumping duty comes into play. Anti-dumping duty is a customs duty formulated by The Directorate General of Trade Remedies to protect local industries from the pricing strategies of foreign brands.

The main objective behind this duty is to lower the impact caused by dumping. Implemented under section 9A of The Customs Tariff Act, 1975, it levels the playing field and helps create a healthy market competition.

Several countries including India conduct extensive anti-dumping investigations and take necessary actions to protect the interests of their domestic traders. This shows these countries’ efforts towards safeguarding their local businesses. It is a step towards strengthening their economies.