Anda di halaman 1dari 50

INTRODUCTION

ANTI- DUMPING DUTIES


Essentially deal with the price behavior of exporters
Dumping exists when normal value is more that the export price
Injury and casual lined are required to be proved.
The General greement on Tariffs and Trade lays down the principles to be followed by
the members of the countries for imposition of anti!dumping duties" countervailing duties
and safeguard measures. #ursuant to the GTT" $%%& detailed guidelines have been
prescribed under the specific agreements" which have also been incorporated in the
national legislation of the member countries of the 'T(. Indian laws were amended with
effect from $.$.%) to bring them in line with the provisions of the GTT agreements.

Dumping is said to have ta*en place when an exporter sells a product to India at a
price less than the price prevailing in its domestic mar*et. +owever" the phenomenon of
dumping is parse not condemnable as it is recogni,ed that producers sell their goods at
different prices to different mar*et. It is also recogni,ed that price discrimination in the
form of dumping is a common international commercial practice. It is also not
uncommon that the export prices are lower than the domestic prices. Therefore" from the
point of view on anti dumping practices" there is nothing inherently illegal or immoral
about the practices of dumping causes or threatens to cause material injury to the
domestic industry of India" the Designated uthority initiates necessary action for
investigations and subsequent imposition of anti!dumping.
LEGAL FRAMEWORK
- .ased on article /I of GTT $%%&
- 0ustoms Tariff ct" $%1)!2ec" %.3as amended in $%%)4
- nti dumping duty rules 50ustoms Tariff 3Identification" ssessment and 0ollection of nti!
Dumping Duty on dumped rticles and for determination of Injury4 6ules" $%%)7
- Investigation and 6ecommendations by designated authority" 8inistry of 0ommerce.
2ection %"%. and %0 of the custom Tariff 3Identification" ssessment and collection of
anti!dumping duties on dumped articles and for Determination of injury.4 6ules" $%%) framed
there under form legal basis for anti!dumping investigations and for the levy of anti!dumping
duties. These laws are based on the greement on dumping" which is in pursuance of article /I
of GTT $%%&.
DUMPING
Dumping occurs when the export price of goods imported into India is less than the value of 9li*e
articles: sold in the domestic mar*et of the exporter. Importers at cheap or low price do not per
se indicate dumping.
The #rice at which li*e articles are sold in the domestic mar*et of the exporter is
referred to as the 9normal value: of those articles.
WHAT IS DUMPING;
<
Normal Value:
The normal value is the comparable price at which the goods under complaint are sold" in the
ordinary course of trade" in the domestic mar*et of the exporting country or territory.
NORMAL VALUE
- 0omparable price of the li*e article when meant for home consumption
- In the course of ordinary trade
- Indian law refer to domestic price in the exporting country or
If the normal value cannot be determined by means of domestic sales" The ct provides for the
following two lternatives methods.
0omparable representative export price to an appropriate third country.
0ost of production in the country of origin with reasonable addition for administrative" selling
and general costs and for profits
Difference between normal value and
export price is nown as !Mar"in of Dumpin"
Export #rice:
The export price of goods imported into India is the price paid or payable for the goods
by the first independent buyer.
Constructed Export Price
If there is no export price or the export is not reliable because of association or a compensatory
arrangement between the exporter or a third party" the export price may be constructed on the
basis of the price at which the imported articles are first resold to an independent buyer. If the
articles are not sold as above or not resold in the same condition as imported" their export price
may be determined on a reasonable basis.
Margin of Dumping
8argin of dumping refers to the difference between the normal value of the li*e article and the
export priced of the product under consideration. 8argin of dumping is normally established on
the basis of=!
- comparison of weighted average normal value with weighted average of prices of
comparable export transactions= or
- 0omparison of normal values and exports prices on a transaction!to!to transaction basis.
normal value established on a weighted average basis may be compared to prices of individual
export transaction if the designated authority finds a pattern of export prices that differ
significantly among different purchasers" regions" time period etc. It is significant to note that the
alternative method comparing the normal values and exports is a major change introduced after
the >ruguay round. The margin of dumping is generally expressed as a percentage of the export
price.
Factors affecting comparison of normal value and export price:

The export price and the normal value of the goods must be compared at the same level of trade"
normally at the ex! factory level for sales made near as possible in time. Due allowances is made
for differences that affect price comparability of a domestic sale and an export sale. These
factors" inter alias" include=
- #hysical 0haracteristics
- ?evel of trade
- @uantities
- Taxation
- 0onditions and terms of sale
It must be noted that the above factors are only indicative and the authority considers
any factor" which can be demonstrated to affect the price comparability.
Lie Articles
nti dumping can be ta*en when there is an Indian
Industry" which produces A?i*e rticles< when
0ompared to the allegedly dumped imported goods.
The article produced in India must either be
Identical to the dumped goods in all respect or in the absence of such an article" another article
that has characteristics closely resembling those goods. Indian industry must be able to show that
dumped imports are causing or are threatening to cause material injury to the Indian: domestic
industry:. 8aterials retardation to the establishment of an industry is also regarded as injury.
$%e Volume Effect

The uthority examines the volume of the
dumped imports" including the extent to
COMPARISION NORMAL VALUE V/S EXPORT
PRICE
t the ex! factory level
Due allowances for factors affecting comparison
't. v B/ with 'T v" E#
B/!E# on a transaction!to!transaction basis
LIKE ARTICLE
Identical a!li*e in all
respects
If not ali*e in all respects"
having closely resembling
characteristics
IN1URY- EVALUATION OF
ECONOMIC INDICATORS
0T>?C#(TEBTI? DE0?IBE IB
2ales
- (utput
- #rofits
- 8ar*et 2hari
- #roductivity
- 6eturn on Investment
- 0apacity >tili,ation etc.
- Employment
- InvestorsC2toc*s
- bility to raise capital or investment etc.
which there has been or is li*ely to be a
significant increase in the volume of
dumped imports" either in absolute terms or
in relation to production or consumption in
India and it:s affect on the domestic industry.
The #rice of the dumped imports on prices
in the Indian mar*et for li*e articles"
including the existence of price undercutting"
or the extent to which the dumped imports
are causing price depression or preventing
price depression or preventing price
increases the goods which other wise would
have occurred.
The consequent economic and financial impact of the dumped imports on
The concerned India industry can be
Demonstrated" inter alias by=
Decline in output
?oss of sales
?oss of mar*et share
6educed profits
Decline in productivity
Decline in capacity utili,ation reduced return on investments
#rice effects
dverse effects on cash flow" inventories" employment" wages" growth" investments"
ability to raise capital etc.
Injury analysis is a detailed and intricate examination of all factors. It is not necessary that
all the factors considered relevant should individually show to the domestic industry.
CASUAL LINK
casual lin* must exist between the material injury being suffered by Indian industry and the
dumped imports. In addition" other injury causes have to be investigated so that they are not
attributed to dumping. 2ome of these are volume and prices of imports not sold at dumped
prices" contraction in demand or changes in the pattern of consumption" export performance"
productive of domestic industry etc.
dumping investigation can normally be initiated only upon receipt of return application
by or on behalf of the Adomestic industry<.


In order to constitute a valid application" the following two conditions have to be satisfied=
The domestic producers expressly supporting the application must account for not less than D)E
of the total production of the li*e articles by domestic industry in IndiaF and
STANDING TO FILE AN APPLICATION
- Express support of those who account for=
G 8ore than D)E of total domestic production" and

G 8ore than)HE production by those supporting and those opposing the application

DOMESTIC INDUSTRY
#roducers of li*e articles as a whole or those producers whose output is a
major proportion of total Indian production
The following are excluded=
Importers
Those related to importers or exporters
Those domestic producers expressly supporting the application must account for more than )HE
of the total production of the li*e articles by those expressly supporting and by those opposing
the application.
DOMESTIC INDUSTRY:
Domestic industry means the Indian producers of li*e articles as a whole or those producers
whose collective output constitutes a major portion of total Indian production.
#roducers who are related to exporters or importers are themselves importers of allegedly
dumped goods shall be deemed not to form part of domestic industry.
6elief can be provided to the domestic industry in the form of anti!dumping duty or price
under ta*ings.
1. ANTI- DUMPING DUTIES:
Duties are imposed on a source a specific basis and can be expressed ether on d valorem or
specific basis. Bon! cooperative exporters are required to pay the residuary duty" which is
generally the highest of the co!operative exporters.

Less duty Rule:
6elief to Domestic Industry
G ?esser duty rule
(nly that amount to duty which is sufficient to remove the
injury to the domestic industry
IN1URY MARGIN
Difference between the fair selling price and the landed value
?anded value is
G ssessable value under customs act plan
G .asic customs duty
>nder the GTT provision" the national authorities cannot impose duties higher than the
margin of dumping. It is" however" suggested that it would be desirable if the appropriate
government authorities impose lesser duties which is adequate to remove the injury to the
domestic industry. >nder the Indian laws" the government is obliged to restrict the nti!
dumping duty to the lower of the two i.e. dumping margin and the injury margin.
Injury margin:-
.esides the calculation of the margin of dumping" the designated authority also calculates the
injury margin which is the difference between the fair selling price due to the domestic
industry and the landed cost of the product under consideration. ?anded cost for its purpose
is ta*en as the assessable value under the customs act and the basic customs duties.
De Minims Margin:

ny exporter whose margin of dumping is less than DE the export price shall be
excluded from the purview of anti!dumping duties even if the existence of dumping" injury as
well as the casual lin* are established" investigations against any country are required to be
DE MINIMIS MARGINS
8argin of dumping
G Exporter specific
G ?ess than DE of export price
/olume of dumped imports
0ountry specific
?ess than IE from individual country and cumulatively not more than 1E
terminated if the volume of the dumped imports from that particular source are found to be
below IE of the total imports" provided the cumulative imports from all those countries who
individually account for less than IE are not more than 1E.
2. Price Undertaking:
The designated authority may suspend or terminate investigation if the exporter
concerned furnished the underta*ing to revise his price to improve the dumping or the
injurious effect of dumping as the case may be. Bo underta*ing can however be accepted
before preliminary determination is made no anti!dumping duties are recommended on
such exporters from whom price underta*ing has been accepted. Bo price underta*ing
may" however" be accepted in case it is found that acceptance of such underta*ing is
impracticable or is unacceptable for any reason
pplication can be made by or on behalf of the concerned domestic industry to the
designated authority in the ministry of commerce for an investigation of when there is
sufficient evidence that dumped imports are causing or tare threatening to cause material
injury to the Indian Industry producing li*e articles or are materially retarding the
establishment of an industry.
0opies of the prescribed application proforma are available from the ministry of
commerce.
Information Required
pplications should be submitted to the designated authority in the ministry of commerce
in the prescribed form. Guidelines on how to complete a questionnaire area part of the
prescribed application proforma
The proforma also advises the applicant of the type of evidence required in appropriate
areas.
Period Of Investigation
Beither the GTT agreement on anti dumping duty nor the Indian laws provide for any
specific guidelines regarding the period of investigation. +owever" there are indications
that the period should not be" in any case" less than six months. It is" however" important
that the period ta*en into consideration for detailed investigation should be representative
and as recent as possible.
Confidential Information
ny information provided to the designated authority on a confidential basis by any party
shall not be disclosed to any other party without the specific authori,ation of the party
providing the information" if the designated authority is satisfied about its confidentiality.
Interested parties supplying information on a confidential basis are required to furnish
non!confidential summaries thereof or a statement of reasons as to why such
summari,ation is not possible.
If the designated authority is not satisfied that the confidentiality is warranted or the
provider or information was not willing to disclose it in a generali,ed form" then such
information may be disregarded.
n application received by the designated authority is dealt with as follows=
Preliminary Screening:
The application is scrutini,ed to ensure that it is adequately documented and
provides sufficient evidence for initiation. If the evidence is not adequate" then a
deficiency letter is issued normally within DH days of the receipt of the application.
Initiation:
'hen the designated authority is satisfied that there is sufficient evidence in the
application with regard to dumping" material injury and caused lin*" a public notice is
issued initiation an investigation to determine the existence and effect of the alleged
dumping.
The designated authority notifies the diplomacy representative of the government of
the exporting country before proceeding to initiate the investigation. The initiation notice
will be issued normally within &) days of the date of receipt of a properly documented
application.
Access to information=
The authority provides access to the non!confidential evidence presented to it by various
interested parties in the form of a public file" which is available for inspection after receipt of the
responses.
Preliminary Findings=
The designated authority will proceed expeditiously with the conduct of the investigation and
shall in appropriate cases" ma*e a preliminary finding containing the detailed information on the
main reasons behind the determination. The preliminary findings will normally be made within
$)H days of the date of initiation.
Provisional Duty=
#rovisional duty not exceeding the margin of dumping may be imposed by the
central government on the basis of the preliminary findings recorded by the designated authority.
The provisional duty can be imposed only after the expiry of JH days from the date of
initiation of investigation.
The provisional duty will remain in force only for a period not exceeding J months"
extendable to % months under certain circumstances.
Oral Evidence:
Interested parties who participate in the investigation can request the designated authority
for an opportunity to present the relevant information orally. +owever" such oral information
shall be ta*en into consideration only when it is subsequently reproduced in writing. The
authority may grant oral hearing any time during the course of the investigation.
Final Determination
The final determination is normally made within $)H days of the date of preliminary
determination.
Disclosure of information=
The designated authority will inform all interested parties of the essential facts which form the
basis for its decisions before the final finding is made.
Time limit for investigation process:
The normal time allowed by the statute for conclusion of investigation and submission of final
findings is per year from the date of initiation of the investigation. The above period may be
extended by the central government by J months.
Termination:
The designated authority may suspend or terminate the investigation in the following cases=
If there is a request in writing from the domestic industry at whose instance the
investigation was initiated.
'hen there is no sufficient evidence of dumping or injury.
If the margin of dumping is less than DE of the export price.
The volume of dumped imports from a country is less than IE of the total imports of the
li*e article into India or the volume of dumped imports collectively from all such
countries is less than 1E of the total imports
Injury is negligible.
Retrospective measures=
The act provides for levy of anti!dumping duty retrospectively" where!
$. There is a history of dumping which caused the injury of that the importers was" or "
should have been aware that the exporter practices dumping and that such dumping
would cause injury" and
D. The injury is caused by massive dumping" in relatively short time" so as to seriously
undermine the remedial effect of anti!dumping duty.
2uch retrospective application will not go beyond %H days or the date of imposition of
provisional duty. Kurther" no retrospective application prior to the date of initiation of
investigation is possible.
Review:
n anti dumping duty imposed under that act shall have the effect for ) years from the date
of imposition" unless revo*ed earlier.
The designated authority shall also revise the need for the continued imposition of the anti
dumping duty" from time to time . 2uch review can be done or no the basis of request
received from an interested party in view of the changed circumstances. reviews shall also
follow the same procedure prescribed for an investigation to the extent they are applicable.
The designated authority is also required to carry out a review for determining margins of
dumping for any new exporter or producer form a country that is subject to anti!dumping for
any new and are not related to any of the exporter of producers who are subject to anti
dumping duty on the product.
Appeal:
n appeal against the order of the designated authority may be filled with the customs" excise
and gold 3control4 appellate tribunal within %Hb days of the date of the order.
Refund Of Duty=
If the anti dumping duty imposed on the basis of final findings is higher than the provisional
duty already imposed and collected" the difference shall not be collected.
If the final anti dumping duty is less than the provisional duty already imposed and collected"
the difference shall be refunded.
If the provisional duty is withdrawn based on a negative final finding" then the provisional
duty already collected shall be refunded.
Products imported by units in EPZ/100 EQUs, advanced license holders and by other
exporters:
nti dumping duty is not payable on products imported by units in E#Ls and $HHE E(@s" as
well as imports on products Imported by advanced license holders in terms of customs
notification Bo.&$.%1!0us dated IH!&!$%%1.
The final anti!dumping duty paid on imported goods used in the manufacture of export goods
are liable to be refunded as duty drawbac* in accordance with the drawbac* rules.
Applicability of Anti-dumping duties other measures=
GTT agreements as well as the India provide that the injured domestic industry is permitted
to file for relief under the anti!dumping duty as well as countervailing duties. +owever" no
articles shall be subjected to both countervailing and anti dumping duties to compensate for
the same situation of dumping of export subsidi,ation.
GATT- ANTI DUMPING: AGREEMENT

greement on implementation of rticle /I of the General greement of Tariffs and Trade $%%&
3The nti!dumping greement4
The greement on Implementation of rticle /I of the General greement on Tariffs
and Trade $%%& 3the< D greement<4 governs the application of anti dumping measures by
8embers of the 'T(. nti!dumping measures are unilateral remedies which may be applied by
a 8ember after an investigation and determination by that 8ember" in accordance with
provisions of the Mad Magreement" that an imported product is Adumped< and that the dumped
imports are causing material injury to a domestic industry producing the li*e product.
The D greement sets forth certain substantive requirements that must be fulfilled in order to
impose an anti!dumping measure" as well as detailed procedural requirements regarding the
conduct of anti!dumping measures. failure to respect either substantive or procedural
requirements can be ta*en to dispute settlement and may be the basis for invalidation of the
measure. >nli*e the greement on 2ubsides and 0ountervailing 8easures" the D greement
does not establish any disciplines on duping itself" primarily because dumping is a pricing
practice engaged in by business enterprises" and thus not within the direct reach of multilateral
disciplines.
Article 1 of the D greement establishes the basic principle that a 8ember may not impose an
anti!dumping measure unless it determines" pursuant to an investigation conducted in conformity
with the provisions of the D greement" that there are dumped imports" material injury" and a
casual lin* between the dumped imports and the injury.
Determination of dumping
rticle D contains substantive rules for the determination of dumping. Dumping is calculated on
the basis of a Afair comparison< between normal value3 the price of the imported product in the
Aordinary course of trade< in the country of import4. rticle D contains detailed provisions
governing the calculation of normal value and elements of the fair comparison that must be
made.
Determination of injury
Article 3 of the D greement contains rules regarding the determination of material injury
caused but dumped imports. 8aterial injury is defined as material injury itself" threat of material
injury" or material retardation of the establishment of a domestic industry. The basic requirement
for determinations of injury" is that there be an objective examination" based on positive evidence
of the volume and price effects of dumped imports and the consequent impact of dumped
imports on the domestic industry. rticle I contains specific rules regarding factors to be
considered in ma*ing determinations of material injury" while specifying that no one or several
of the factors which must be considered is determinative. rticle I.) requires" in establishing the
casual lin* between dumped imports and material injury" *nown factors other than dumped
imports which may be causing injury must be examined" and that injury caused by these factors
must not be attributed to dumped imports.
significant new provision" rticle I.I" establishes the conditions in which a cumulative
evaluation of the effects of dumped imports from more than one country may be underta*en.
>nder the rules" authorities must determine that the margin of dumping from each country is not
de minims" that the volume of imports from each country is not negligible and that a cumulative
assessment is appropriate in light of the conditions of competition among the imports and
between the imports and the domestic li*e product.
Definition of industry
Article 4 of the D greement sets forth a definition of the domestic industry to be considered
for purposes of assessing injury and causation. The domestic industry is defined as producers of
a Ali*e product<" which term is defined in rticle D.J as a product that is identical to" or in the
absence of such a product" one that has characteristics closely resembling those of " the imported
dumped product under consideration. rticle & contains special rules for defining a Aregional<
domestic industry in exceptional circumstances where production and consumption in the
importing country are geographically isolated" and for the evaluation of injury and assessment of
duties in such cases. rticle & also establishes that domestic producers may be excluded from
consideration as part of the domestic industry if they are Arelated<3 defined as as a situation of
legal or effective control4 to exporters or importers of the dumped product.
Overview
principal objective of the procedural requirements of the D greement is to ensure
transparency of proceedings" a full opportunity for parties to defend their interests" and adequate
explanations by investigating authorities of their determinations. The extensive and detailed
procedural requirements relating to investigations focus on the sufficiency of petitions 3through
minimum information and Astanding< requirements4 to ensure that merit less investigations are
not initiated" on the establishment of time periods for the completion of investigations" and on
the provision of access to information to all interested parties" along with reasonable
requirements relate to the offering" acceptance" and on the provision of access to information to
all interested parties" along with reasonable opportunities to present their views and arguments.
dditional procedural requirements relate to the offering" acceptance" and administration of price
underta*ings by exporters in lieu of the imposition of anti!dumping measures. The D
greement requires investigating authorities to give public notice of and explain their
determinations at various stages of the investigative process in substantial detail. It also
establishes rules of the timing of the imposition of anti!dumping duties" the duration of such
duties" and obliges. 8embers to periodically review the continuing need for anti!dumping duties
and price underta*ings. There are detailed provisions guiding the imposition and collection of
duties under various duty assessment systems" intended to ensure that anti!dumping duties in
excess of the margin of dumping are not collected" and that individual exporters are not subjected
to anti dumping duties in excess of their individual margin of dumping. rticle $I of the D
greement requires 8embers to provide for judicial review of final determinations in anti!
dumping investigations and reviews. (ther provisions establish that 8embers may" at their
discretion" ta*e anti!dumping actions on behalf of and at the request of a third country" and
recogni,e that Aspecial regard< must be given by developed country. 8embers to the situation of
developing country. 8embers when considering the application of anti!dumping duties.
Specific Provisions
Initiation and conduct of investigations
Article 5 establishes the requirements for the initiation of investigations. The D greement
specifies that investigations should generally be initiated based on a written request submitted
Aby or on behalf of< a domestic industry. This Astanding< requirement is supported by numeric
limits for determining whether there is sufficient support by domestic industry" and thereby
warrants initiation. The D greement establishes requirements for evidence of dumping"
injury" and causality" as well as other information regarding the product" industry" importers"
exporters" and other matters" in written applications for anti!dumping relief" and specifies that" in
special circumstances when authorities initiate without a written application from a domestic
industry" they shall proceed only if they have sufficient evidence of dumping" injury" and
causality. In order to ensure that merit less investigation are not continued" potentially disrupting
legitimate trade" rticle ).N provides for immediate termination of investigations in the event the
volume of imports is negligible or the margin of dumping is de minims" and establishes numeric
thresholds for these determinations. In order to minimi,e the trade disruptive effect of
investigations" rticle ).$H specifies that investigations shall be completed within one year" and
in no case more than $N months" after initiation.
Article 6 sets forth detailed rules on the process of investigation" including the collection of
evidence and the use of sampling techniques. It requires authorities to guarantee the
confidentiality of sensitive information and verify the information on which determinations are
to be based to interested parties and provide them with adequate opportunity to comment" and
establishes the rights of parties and provide them with adequate opportunity to comment" and
establishes the rights of parties to participate in the investigation" including the right to meet with
parties with adverse interests" for instance in a public hearing.
Imposition of provisional measures
Article 7 relates to imposition measures. rticles includes the requirements that authorities ma*e
a preliminary affirmative determination of dumping" injury and causality before applying
provisional measures" and the requirement that no provisional measures may be applied sooner
than JH days after initiation of an investigation.
Price undertakings
Article 8 establishes the principle that underta*ings to revise prices or cease exports at dumped
prices may be entered into settle an investigation" but only after a preliminary affirmative
determination of dumping" injury" and causality has been made. It also establishes that
underta*ings are voluntary on the part of both exporters and investigating authorities. In
addition" an exporter may request that the investigations authorities. In addition" an exporter may
request that the investigation be continued after an underta*ing has been accepted" and if a final
determination of no dumping" no injury" or no causality results" the underta*ing shall
automatically lapse.
Duration, termination, and review of anti-dumping measures
Article 11 establishes rules for the duration of anti!dumping duties" and requirements for
periodic review of the continuing need" if any" for the imposition of anti!dumping duties or price
underta*ings. These requirements respond to the concern raised b the practice of some countries
of leaving anti!dumping duties shall normally terminate no later than five years after first being
applied" unless a review investigation prior to that date establishes that expiry of the duty would
be li*ely to lead to continuation or recurrence of dumping and injury. This five year Asunset<
provision also applies to price underta*ings. The D greement requires authorities to review
the need for the continued imposition of a duty upon request of an interested party.
Article 18.3 establishes the effective date of the D greement" providing that it is applicable to
investigations and reviews of existing measures initiated pursuant to applications made on or
after the entry into force of the D greement by the date of entry into force of the D
greement. >nder rticle $N.)" 8embers are required to notify their anti!dumping laws and
regulations to the 0ommittee.
nnex I to the D greement establishes procedures for Aon the spot< investigations" which are
generally underta*en in the territory of an exporting 8ember to verify information provided by
foreign producers or exporters. nnex II to the D greement sets forth provisions on the use of
Abest information available< in investigations" specifying the conditions under which
investigating authorities may rely on information from a source other than the person concerned.
The 8inisterial Decision on nti!0ircumvention" which is not part of the D greement" noted
that the negotiators had been unable to agree on a specific text dealing with the problem of anti!
circumvention" recogni,ed the desirability of applying uniform rules in this area as soon as
possible" and reformed the matter to the 0ommittee for resolution. The committee has
established an Informal Group on nti 0ircumvention" which is open to participation by all
8embers" to carry out the tas* assigned by the 8inisters.
ANTI DUMPING DOCUMENTATION

The directorate has considered the need to streamline anti dumping documentation so as to ma*e
it more concise and comprehensive. This publication contains the revised format and guidelines
for applications see*ing anti dumping action.
The petitioners are expected to furnish documented petition with the information as per the
revised format and the footnotes in each part thereof. The information so submitted should be
drawn from reliable sources. 'herever required the petitioners should annex the copies of
requisite documents to substantiate facts and figures presented.
The officers if the directorate will be available for any assistance required in the completion
of fully documented petition to present prima facie evidence of dumping" injury and casual lin*
thereof as required by the rules governing the process of anti dumping duty investigations.
The applicant is advised to familiari,e themselves with sections %a" %b and %c of the
0ustom Tariff ct" $%1) and the 0ustoms Tariff 3identification" assessment and
collection of anti dumping duty on dumped articles and for determination of injuryH
6ules" $%%) before filing a petition. The applicant may also refer to the brochure
issued by this directorate on the subject.
The designated authority would initiate investigations to determine the existence"
degree and effect of any alleged dumping upon receipt of a properly documented
petition by on on behalf of the domestic industry in accordance with rule)3$4
6ules )3)4 requires the designated authority to examine the accuracy and adequacy of
the evidence provided in the application and satisfy itself that there is sufficient
evidence regarding dumping" injury where applicable and a casual lin* between
imports and the alleged injury to justify the initiation of an investigation.
Bo petition will thereof be ta*en on record of this directorate until is fully
documented and until all information:s elicited therein are furnished by the petitioner.
Incase of any problem faced in filling the application the concerned case officer of the
directorate may be contracted for assistance and help. The petitioner must ensure that
the application filed by them is complete in all respects and is fully documented" so
that it may be ta*en on record by the authority and necessary action initiated.
The petition should specifically cover" inter alias" the following=
o Information on the imported product
o Information on the domestic industry and the domestic mar*et
o Evidence of dumping
o Evidence of injury" and
o Evidence of casual lin*
Confidential information= 6ule 1 permits an interested party to furnish information
the disclosure of which would be of significant competitive advantage to a competitor
or because its disclosure would have a significantly adverse effect upon a person
supplying the information or upon a person from whom that person acquired the
information" shall be treated as such" evidence relating to normal value" export price"
costing" profitability" specific adjustments in pricing are examples of such
information which is usually accepted be designated authority as confidential. If
confidentiality is claimed on any other aspect" which generally is not the above
criteria" the applicant should give a brief statement of reasons as to why that
particular information needs to be *ept confidential. Incase such information is
furnished on confidentialF the designated authority may disregard such information. It
is utmost important that each page and supplementary information furnished on
confidential basis is clearly mar*ed A0onfidential< on the face of it" failing which the
request for confidentiality may not be entertained.
ll documentsCargumentsCsubmissions or correspondence made on a confidential
basis should necessarily be accompanied by a non!confidential summary" failing
which such communication is liable to ignored without ma*ing any other further
reference to the supplier of such information" in view of the time limit laid down
under the law.
The potential is required to be submitted in two copies along with one non
confidential version thereof. The designated authority may" however" require
additional copies before initiation of investigation or at any time during the course
of the investigations.
The designated authority may provide any information submitted by the applicant
on non!confidential basis to other interested parties in accordance with rule J.
The petition should contain information as detailed in the enclosed proforma. The
proforma enclosed is not a fill!in proforma and" therefore should be treated as a
questionnaire. ny information" not requested in the proforma which may be of
importance may also be furnished.
pplicants are advised to consider a time period for providing information. The
time period chosen for furnishing information should preferably be $D months or
more. It is desirable that this period be most recent and corresponds to the
accounting year of the domestic industry. ll information" unless otherwise
specified should relate to this period.
The designated authority may request any additional and or supplementary
information any time before or after initiation of investigation.
ll information unless otherwise specified should relate to the relevant product.
The designated uthority requires information on the extent of injury upon
initiation. The information generally required to be furnished is indicated in part
I/ of these guidelines.
The application should be addressed to=
Designated uthority
Directorate General of nti!dumping and llied Duties
8inistry of commerce
>dyog .havan" Bew Delhi $$H H$$
#lease complete the certificate as at Kormat 9K: for submission along with the
petition
Imported Product Information
#lease provide complete information on the product which is alleged to be dumped in India. The
following information is relevant in this section of the complaint.
0omplaint description of alleged dumped goods" including information on its si,e"
quality" category and uses of such goods along with any applicable technical
specifications or standards and the IT0 3+24 classification" custom classification"
custom duty" import policy 3including advance licensing provisions4
0ountry of origin of the alleged dumped goods.
2ince when such goods from the named country is being imported in the Indian mar*et
and when did dumping starts.
'hether such goods are shipped to India through third countries.
/olume" value and avg.cif value of such dumped goods imported into India from each
country alleged to be dumping the goods for the past two years to date and the source
of information thereof.
/olume" value and avg.cif value of such dumped goods imported from other countries"
not alleged to be dumping the goods" for the past two years and the current year to
date and the source of information thereof.
Bame and address of *nown exporters and manufacturers of the alleged dumped
goods.
Bame and address of *nown importers of the alleged dumped goods in India.
Bame and address of association of the users of the alleged dumped goods in India.
Bote= Data on the volume and value of imported goods can be determined from some
published sources" such as the directorate General of 0ommercial Intelligence O
2tatistics 3DG0IO24 publications" 0ustoms Daily andCor information otherwise
available. 2ource of information must be specified while furnishing information.

D Estimates of Export Price.
#rovide the following information" country!wise" with respect to the Export #rice of the
product for the last financial years and the current year to date.
verage Export #rice to India and the basis of prices3 e.g. K(."0IK"K(64
0osts per unit after ex!factory and before exports to India that the exporters should have
incurred towards items such as inland freight" insurance" taxes" etc. 3information on each
of these items is to be given separately and should be supported with sufficient evidence4=
The benefits which accrue to the exporters in the subject country on exports made to
India which are not available to the exporter in case of sales in the home mar*et.
Bet exporter price after adjustments towards" freight" insurance" inland freight" storage
etc=
I. Estimates of Dumping 8argin=
#rovide details of estimates dumping margin in case of each alleged to be dumping the
subject goods in India. The information may be in following format
In local currency of
exporter
Exchange 6ate /is!
P!vis Q
In >2 Q
Bormal value
Export price
Dumping margin

Evidence of Injury
#lease provide complete information on how imports of the alleged dumped goods caused or
threaten material injury to the domestic industry or materially retards its establishment. The
following information is relevant for this section of the complaint=
0hanges in mar*et share held by Indian producers
Increased imports from the subject country
2ignificant decline in the production of the petitioner
2ignificant decline in the utili,ation of capacity of domestic industry 3>nder utili,ation
of capacity4
2ignificant decline in the sales volume of the petitioner
2elling price 3evidence of price erosion" price undercutting" price suppression or price
depression4F
Evidence of lost contracts of declining salesF
Employment 3employment levels" lay!off of employees due to increased alleged
dumped imports4F
#rofitability 3+istory of profit levels for the petitioner and industry4F
#lease give the above information as per proforma I/ and I/ ..
IN1URY INFORMATION ON DOMESTIC INDUSTRY
PROFORMA IV A
#rovide information for the domestic industry as a whole for the period of investigation
and the preceding two financial years in the format given below=
Sr.no Particulars Year I Year II Period Of
Investigation
Qty. Value Qty. Value Qty. Value
1 Imports
From the subject
country
Other Country
2 Installed
Capacity
3 Production
4 Capacity
Utilization
5 Captive
Consumption
6 Indigenous Sale
7 Export Sale
8 Opening Stock
9 Closing Stock
10 Cost of Sales
11 Profit/Loss
12 Investments
13 Net worth
14 Capital
investment for
expansion
15 Employment
16 Demand (1+5+6)
17 Market share
18 Any other factor
Botes=
$. #lease indicate unit of measurement wherever applicable
D. Indicate basis of estimating demand" if it is other than what is specified in the
format above.
I. Kurnish the balance sheet and financial statements for these years for the company
as a whole for the unit and the specific product in question when the company is a
multi!unit and multi!product one.
-3Indigenous sale by the domestic industry as a percentage of demand4
COUNTRY-WISE LANDED VALUE- \Proforma IV B
#rovide details regarding export price" custom duty etc. and wor* out the landed
value of imports per unit of the alleged dumped product for each of the subject
country
Name of the exporting country
Sr.no Particulars Year 1 Year II Period Of
Investigation
Qty. Value Qty. Value Qty. Value
1 Avg. FOB price (US$)
2 Charges after FOB
and before CIF
1. Freight
2. Insurance
3. Other charges
3 Avg. CIF price
(US$) (1+2)
4 Avg. Exchange rates
5 Avg. CIF price
(Rs) (3`4)
6 Landing charges
7 Avg. Assessable value
(5+6)
8 Custom clearance and
handling charges
9 Custom Duty Basic
Auxiliary
Countervailing Duty
10 Landed value of
imported product
(7+8+9)
11 Avg. selling price of
indigenous product
1. Including
excise duty
2. Excluding
excise duty
Botes=
$. 2eparate proforma for each of the exporting country is to be furnished.
D. .rea* up of custom duty is to be indicated separately.
I. 2upporting dateCdetails are to be attached
In the absence of K(. price" the statement may be prepared form other stage.
Evidence of casual link
#lease provide information on the factors which establish that the injury to the domestic industry
is due to dumping from the subject country. Kactors other than dumping are also at the same time
causing injury to the domestic industry must be segregated. #rovide information on the
following=
The following information is relevant for this section of the complaint=
/olume and value of imports from country other than the subject country and an
explanation on why imports from this country are not causing injury to domestic
industry.
Demand of the product for the past three years including current year. In case the
demand has undergone substantial charge" an explanation on why changes in the
demand has not caused injury to the domestic industry.
#rovide explanation on whether trade restrictive practices of a competition
between the foreign and domestic producers" development technology" the export
performance or the productivity of the domestic industry or any other *nown
factors have not caused injury to the domestic industry.
Costing information
#lease provide information on the following within one month of the initiation of investigations.
#roduct process= 2tage wise process of manufacturing and various routes of manufacture.
#rocess flow chart indicating cycle time ta*en at each process.
6aw materials and pac*ing materials consumption and reconciliation statement as per
format A<
6aw material consumption norms and comparison with actual as per format A.<
statement showing cost of production as per format A0I< and A0II< into fixed" variable
and semi variable. The semi variable expenses may further be classified
>tilities consumption statement as per format AD< for the investigation period and
previous three years.
0alculations of wor*ing capital as follows=
o 'or*ing capital as per balance sheet
o 'or*ing capital as per ban* limits
o 'or*ing capital as per production cycle time.
Interests on term loans= statement of term loan outstanding at the beginning of the year" at
the end of the year" interest paidCpayable on term loans and average rate of interest on
term loans.
(ver due andC or compounding interestF statement showing details of overdue andCor
compounding interest= statement showing details of overdue andCor compounding interest
provided in the annual audited accounts relevant to the period of investigation
Depreciation= statement showing gross and net bloc* for the investigation period and
previous year.
6eturn C profit= 2tatement showing desirable return on capitalC equity along with
justification in support thereof.
Details of misc. income and earned during the year.
2ales reali,ation= showing details of gross sales reali,ation" discountsCcommission" excise
duty" other taxes and net sales reali,ation" as per format AE< for the past three years and
month wise for investigation period. The figures should reconcile with balance sheet of
the corresponding years.
Details of 'I# at the beginning and end of the investigation period. 0learly indicating
brea*up of material cost and overhead charged valuation.
.rief write up on the following=
o #urchase policy including long term contracts for major materials.
o 2ales policy indicating mar*etingC distribution channels" commissionC discount policy"
credit terms etc." sales policy to bul* consumers.
o 2tores accounting and inventoryC stoc*C'I# valuation.
o @uality control procedure and test being conducted.
statement showing production" sales quantities" capacity utili,ation" stoc*" net average
sales reali,ation" cost of production" profitCloss for the past three years and month wise
for the period of investigation.
Details of job wor* done or got done during the investigation
udited and printed annual accounts for the investigation period and past three years" and
trial balance for the investigation period.
Bote=
$. ll the information" unless otherwise stated" should relate to the investigation period
D. Information may be complied to the extent possible from the annual audited accounts and
supplementary records being maintained by the company.
I. ll the information is subject to verification" and therefore all supporting papers"
including wor*ing sheets may be preserved for verification by the designated authority.
&. The information" to the extent possible" should be supplied in the formats prescribed.
2TTE8EBT (K 6' 8TE6I? BD #0RIBG 8TE6I?2 0(B2>8#TI(B BD
6E0(B0I?ITI(B! format A<
#articular (pening 2toc*
@ty. 6ate value
#urchases
@ty. 6ate value
0losing 2toc*
@ty. 6ate value
0onsumption
@ty. 6ate value
6aw material
3term wise4
#ac*ing
materials 3Item
wise4
Total
Bote= This statement should be for the investigation period
2TTE8EBT (K 6' 8TE6I? 0(B2>8#TI(B
Kormat A.<
#articular >nit 0onsumption
#er >nit of
production
ctual
consumption
per unit of
production
Sear$ SearD
SearI
verage of rate
of investigation
6aw material
3Item wise4
Total cost per
unit of
production
considering
rates for the
investigation
period
2TTE8EBT (K 0(2T (K #6(D>0TI(B!3K(68T A0<4
Bame of the company
Installed capacity
#roduction in Installed
0apacity >tili,ation 3E4
0apacity utili,ation in
Investigation period
2ales 3@uantity4
#articulars #revious accounting Sear
@ty. 6ate value cost per
unit
Investigation period @ty.
rate value cost per unit
8anufacturing expenses
6aw 8aterials
32pecific the major raw
material4
>tilities
Depreciation
(thers 3#lease specify the
nature of expenditure4
dministrative Expenses
/ariable
Kixed
Kinancial Expenses
!/ariable
!Kixed
?ess= 8isc. Income 3from
product concerned4
Total cost to ma*e and sell
2elling #rice
#rofitC?oss
Bote= #lease 2pecify the unit" wherever applicable
The information in this proforma to be certified by practicing cost accountant
??(0TI(B BD ##(6TI(B8EBT (K ET#EBDIT>6E!K(68T
3A0II<4
#lease provide the basis along with the amount allocated to the subject product and to other
products out of the total expenses of the company" as per following format
2I #articular
Expenses
Total
applicable to
product
under
investigation
2hare
applicable to
product
under
investigation
2hare not
allocation
apportionment
.asis of
$ D I & ) J
6aw material
3item wise4
0onsumable stores
and sparesCother
inputs
>tilities 3#ower"
fuel" 2team" etc.4
Direct ?abor
8anufacturing
(verheads32pecify
under major
heads4
6esearch and
Development
dministrative
(verheads
2elling O
Distribution cost
Depreciation
Kinancial expenses
(ther misc.
expenses
Total expenditure
2ales
(ther income
Total income
#rofitC?oss
Bote=
$. The information in this proforma is to certified by a practicing cost accountant.
ll items and expenditure shall be reconciled with annual accounts

2TTE8EBT (K 0(B2>8#TI(B (K >TI?ITIE2
Kormat AD<
#articular 0onsumption
Borms3per unit of4
production
S$ SD SI #(I
ctual consumption
3#er unit of
production4
S$ SD yI
Investigation period
>nits 6ate
a4 #ower
b4 'ater
c4 other
3#lease 2pecify4
Total 0ost
considering
investigation period
rates
Bote= The details should be in terms of utilities purchased and paid by the company.
The rate should be the average cost for the investigation period.
Issues Relating To Anti-dumping Duty
6ecent years have seen increasing resort to anti!dumping actions. In a number
of cases investigations are started even in cases where the industry claiming
injury has not been able to produce" before the investigating authorities"
satisfactory evidence of dumping or injury. Bew investigations have often
been started on the same products immediately after the termination of an
investigation. This is particularly true of exports of developing countries
which are being subject to more and more anti!dumping and countervailing
measures. The uncertainty and restrictiveness of these measures have created
trade disruption affecting not only particular consignments but also longer!
term trade in the targeted product. .enefits from trade liberali,ation have been
considerably neutrali,ed by the unfair use of anti!dumping measures"
including bac*!to!bac* anti dumping investigations on the same products
which have frustrated the expectations created during the >ruguay 6ound.
The lac* of clarity in certain provisions has compounded the problem"
including the fact that rticle $) of the greement which provides the only
reference to the special situation in developing countries is ambiguous and
practically inoperative. Kurthermore" in cases where there are no sales" or the
sales in the domestic mar*et are low" the investigating authorities rely on
Aconstructed value< calculated on the basis of cost of production" even where
data on price comparison purposes. Experience has shown that the
determination of the constructed value is often not fair and results in
harassment of exporting firms that are alleged to be dumping. 8oreover"
certain provisions" particularly those relating to de 8inims dumping margin
and the threshold volume of imports below which no anti!dumping duty shall
be levied" need to be revised in view of the changed global trade and
economic scenario" especially for exports from developing countries. The
concerns arising out of increased susceptibility of developing countries to the
incidence of dumping into their economy" as they liberali,e their import
regimes" also needs to be addressed.
The special provisions in the greement relating to settlement of disputes in
the anti!dumping area which inter alias require panels not to challenge Athe
evaluation of facts< made by the investigating authorities" where
Aestablishment of facts was proper and the evaluation was unbiased and
objective< needs to be modified to provide that the common rules provided by
the Dispute 2ettlement >nderstanding apply to disputes relating to anti!
dumping actions. The following amendments are therefore necessary in order
to ensure that developing countries receive the due benefits of global trade
liberali,ation.
9India ran*s first in implementing anti!dumping duties:
.
The 'orld Trade (rgani,ation 2ecretariat has said that India leads all 'T(
member!countries in implementing anti!dumping measures followed by
European >nion and Indonesia during the first six months of DHHN.
A0oncerning application of new final anti!dumping measures" India
reported applying $J new measures" thereby registering an increase of 1N
per cent during Uanuary!Uune over the same period last year"< the 'T( said
in its report.
India applied for six of the $J new measures on products in the chemicals sector" it said.
INDIAN POLICIES REGARDING ANTY DUMPING DUTIES
European >nion bagged the second place reporting eight new measures initiating anti!dumping
actions" which is the first step before members decide to ta*e initial and final anti!dumping
measures" India ran*s third after Tur*ey and the >2 in the first half of the calendar year.
The member countries reporting the highest number of new initiations during Uanuary!Uune were
Tur*ey 3$I4 followed by the >2 3$D4 and India 3$$4" 'orld Trade (rgani,ation 3'T(4
2ecretariat report said. 3BI4
Indian industry is clamoring for protection against dumping by China. Why?
By Jairam Ramesh
1ust over two years ago" the tal .ihari /ajpayee Government demoni,ed 0hina
saying our going nuclear was prompted by the threat from across the +imalayas.
Bow" it is the turn of Indian industry. 'e are being told that 0hinese products
and goods are being dumped in Indian mar*ets
Dumping is said to ta*e place when the export price is lower than the price
normally charged in the home mar*et. country imposes anti!dumping duties but only after a
prescribed process of investigation is gone through and VmaterialV injury to domestic producers
is proven. In the past three years" of about 1H petitions put forward by Indian companies to the
>nion 0ommerce 8inistry for imposition of anti!dumping duty" ID have been triggered by
0hinese imports.
Kigures with the >nion Kinance 8inistry give some idea of the 0hinese penetration. In a dry cell
battery mar*et of about 6s $"HHH crore" imports from 0hina are about 6s I) croreF in a writing
instruments industry of about 6s $"DHH crore" 0hinese imports are around 6s )H croreF in an
umbrella mar*et of about 6s $HH crore" 0hinese imports are about 6s & croreF and in a loc*s
mar*et of around 6s $HH crore" 0hinese imports are placed at about 6s & crore. Thus" judged
from a national mar*et perspective" it is difficult to support the contention that 0hinese imports
are swamping the country.
8oreover" in some cases" 0hinese imports do not compete directly with their Indian
counterparts. Ta*e raw sil*" for example. India produces around $)"HHH tones of sil* a year but
this is of an inferior variety called multivoltine sil*. (ur imports from 0hina of about 1"HHH tones
a year are of the vastly superior bivoltine variety which we do not produce. Bo wonder sil*
weavers are happy with imports!which illustrates a more general point that while dumping may
be bad from a local producerWs point of view" it may well offer benefits to local consumers and
users.
Garments" toys" sports goods" plastic goods and a slew of household appliances are all areas
where 0hinese goods have simply swamped world mar*ets. Indian industry cannot be blamed for
lac* of competitiveness in such sectors where small!scale reservation has held us bac*. If this
reservation is removed" as it must" production will still ta*e place in small units" but not small as
defined by us.
The 0hinese may well be dumping. 0hina is not yet a member of the 'T( and therefore can get
away with pretty much what it does specially since its companies are not subject to the type of
financial transparency as companies elsewhere in the world" including in India" are. In a number
of cases" 0hinese selling prices do not even cover raw material costs. Indian industry does
deserve a brea* on this score.
'Safeguard' Duty: nti!dumping duty investigation and imposition procedures are long and
cumbersome and the minimum time ta*en is around six months. That is one reason why #.
0hidambaram introduced the concept of VsafeguardV duty in his Uuly $%%J budget. This is a duty
imposed to deal with a sudden surge in imports and to give timely but temporary relief to Indian
companies who are facing VseriousV injury. .ut while anti!dumping duty can be country!specific"
safeguard duty is not. In any case" li*e the anti!dumping duty" a quasi!judicial procedure has also
to be gone through. This means that even the safeguard duty will ta*e a minimum four to five
months for imposition.
Indian industry has called for faster completion of anti!dumping investigations and reliefs. That
call is justified but no process can ta*e less than %H days. .ut the real problem is that we can be
hurt more by the use of anti!dumping duties by other countries on our exports than we can
benefit by imposing anti!dumping duties on imports. 'e" therefore" stand to gain by the abolition
of the very system of anti!dumping duties. India should play a leading role in the 'T( in this
regard.
2ince anti!dumping duty ta*es time and is counter!productive" what can be done immediately is
to insist on goods coming into India conforming to Indian standards specifications and
displaying the maximum retail price in rupees. These are called Vnon!tariffV measures to provide
relief to local producers facing unfair competition. nd to deal with 0hinese goods being
smuggled in from Bepal" we could renegotiate the $%%J bilateral treaty and insist that India will
allow duty!free imports from Bepal only if there is" say" IH per cent value!addition in that
country itself.
+owever" the broader point is that the 0hinese manufacturing industry is more efficient than
IndiaWs. That is because the government there has engineered a competitive advantage especially
for labor!intensive manufacturing. This is an area where" unfortunately" the GovernmentWs small!
scale and fiscal policy and poor infrastructure have denied and are still denying India the
opportunity of emerging as a world power.
India imposes anti!dumping duty on 0hinese yarns and fabrics
India has imposed anti!dumping duty of up to Q)D1 per ton on yarns and
fabrics imported from 0hina" Thailand and /ietnam to protect its home industry"
according to local media reports on 2aturday.
The anti!dumping duty will remain in force till 2eptember D)" according to a
notification by the 0entral .oard of Excise and 0ustoms issued on Kriday" said the
reports.
Earlier" the Directorate General of nti!Dumping and llied Duties" which is
under the 8inistry of 0ommerce and Industry of India" said Indian industry Vwas
suffering material injury caused by dumped importsV from 0hina" Thailand and
/ietnam at low prices" the notification said.
The duty would be between Q$$D.J& and Q)D1.I$ per ton" said the
notification.
n anti!dumping duty of up to DH) rupees 3Q&4 per meter has also been
imposed on flax fabric imported from 0hina" including the +ong Rong 2pecial
dministrative 6egion" said the reports.
Earlier this wee*" India had imposed safeguard duty up to I) percent on some
of the aluminum products to protect domestic industry against cheap imports from
0hina" according to the semi!official #ress Trust of India.
0hinese 8inistry of 0ommerce delegation visited India last wee* to
discuss with Indian officials how to avoid trade disputes" including IndiaWs anti!
dumping measures against 0hinese products" through regular communication and
coordination.
.ilateral trade volume between 0hina and India has attained Q)H billion
annually" overta*ing that between India and the >nited 2tates.
Leading initiators
India initiated the most anti!dumping investigations in DHHN" filing )& cases in all with DI
stemming from just D types of imports 30old!6olled Klat #roducts of 2tainless 2teel" where the
Indian government initiated cases against N different exporting countries" and +ot 6olled 2teel
#roducts where they initiated cases against $) different exporting countries. India:s lead position
was followed by Tur*ey and .ra,il 3DI investigations each4" rgentina 3$%4" the >2 and the E>
3$N each4" 0hina 314" 0olombia and ustralia 3J each4" Rorea 3)4" and 0anada" #a*istan" and
2outh frica 3I each4.
0ompared to DHH1 figures" these numbers represent increases for 0anada" the E>" India"
#a*istan" Tur*ey" 0hina" 0olombia" ustralia" .ra,il" and rgentina" and declines for the >2"
2outh frica" and Rorea. Egypt and Bew Lealand" which had initiated new investigations in
DHH1" did not initiate any new investigations in DHHN.
Leading targets
Exporters in developing countries were the subject of $&1 anti!dumping investigations in DHHN X
&)E more than the $H$ investigations directed against them in DHH1. In addition" %D of the $DH
new measures in DHHN were applied to developing countries: exported products" compared with
1N of $HH new measures in DHH1. 0hina was the most frequent subject of anti!dumping
investigations in DHHN" as I)E 3JJ initiations4 of all the new initiations in DHHN were directed at
its exports. This represented a D1E increase over the )D new investigations that targeted 0hina:s
exports in DHH1. The E>" Thailand" and Indonesia each had $$ investigations directed at their
exports" followed by 8alaysia 3$H4" Taiwan 3%4" 2outh Rorea 3N4" India 314" the >2 3J4" .ra,il"
Uapan" and 2audi rabia 3& each4" Iran" 2outh frica" Tur*ey" /ietnam 3I each4" .elarus"
0anada" +ong Rong" #eru" 6ussia" and >*raine 3D each4. Thirteen other countries were the
subject of one new anti!dumping investigation each in DHHN.
Iron and steel most common products
In *eeping with past trends" the most frequently investigated products in DHHN were in the iron
and steel sector 3&N initiations4" followed by the chemical sector and the textileCapparel sectors
3I) initiations each4. 0oncerning the investigations that targeted the iron and steel sector" India
initiated one half of them" while the E> initiated $$.
Data on antidumping measures actually applied
6egarding the application of new final anti!dumping measures" India applied DJ new measures in
DHHN!two measures less than it applied in DHH1. The >2 applied DI new measures in DHHN"
followed by the E> and .ra,il 3$) each4" Tur*ey 3$$4" 2outh Rorea 3N4" rgentina and 0hina 3&
each4" 0anada" Egypt" 2outh frica" ustralia 3I each4" and Bew Lealand 3D4. This represented
increases for the >2" the E>" Egypt" Tur*ey" 2outh frica" Bew Lealand" ustralia" .ra,il" and
Rorea" and declines for India" 0hina" and rgentina" compared with the figures in DHH1. In
addition" #a*istan" Taiwan" and 0olombia" which had applied new measures in DHH1" did not
apply new measures in DHHN.
0hina:s products were the most frequent subject to new anti!dumping measures in DHHN"
comprising &$E 3&% new measures4 of the $DH new measures applied during this period. These
&% measures applied on 0hinese exports represent an increase of ) new measures from DHH1.
Exports from the E> were next" with % new measures applied" followed by Taiwan 3N4" 2outh
Rorea 314" the >2 3J4" India and Indonesia 3& each4" .ra,il" 6ussia" 2ingapore" and 2outh frica
3I each4" Uapan" 8alaysia" Thailand" Tur*ey" and /ietnam 3D each4. Exports from eleven other
countries were subject to one new anti!dumping measure each in DHHN.
The chemical sector was the industry most frequently affected by the new measures applied in
DHHN!accounting for&1 of the $DH new measures applied. The iron and steel sector was subject to
$N new measures" and the plastics and rubber sector was subject to $& new measures in DHHN.
0oncerning the new measures that were imposed on products in the chemical sector" nearly one
half 3DI4 of the &1 new measures were applied by India.
Govt. imposes anti dumping duty on stainless steel products
The Indian government has recently imposed a series of anti-dumping duties in order to
deal with the inexpensive imports of stainless steel from countries like China, 1apan,
Korea, US, etc. these duties are imposed until 21st of October on cold-rolled flat stainless
steel products to provide a healthy support to the domestic industry. Following the good
words of Directorate General of Anti-dumping and Allied Duties (DGAD), the finance
ministry imposed duty of $1,823 per tone on the import of cold rolled flat stainless
products. Nevertheless, anti dumping duties on steel products altered from $12.74 to
$1,823.43 per tone.
Indian industries beg for protection
Industries from chemicals to textile yarn are wor*ing to convince Delhi that the country needs to
ta*e a more protectionist tac*. Uayanta Dey C 6euters
Trade bodies for Indian industries such as chemicals" steel" pharmaceuticals" textile yarn"
machinery" and glass have all been lobbying hard for Delhi to ta*e a more protectionist stance.
.ut Delhi has stuc* doggedly to 'orld Trade (rganisation rules.
t the start of December" 66 Go*hale" secretary general of the Indian 0hemicals 0ouncil" flew
from 8umbai to Delhi to meet senior civil servants in the ministries of chemicals" commerce"
and finance.
'ith him" were $) senior executives from India:s chemicals industry.
Their mission= to lobby for the import tax on chemicals to be more than doubled to protect his
members" mostly medium!si,ed producers" who are struggling to survive after a surge in cheap
imports.
A(ur Indian 0hemicals 0ouncil is very strongly advocating to the government that in view of
this meltdown" let there be a straight $H per cent duty increase" ta*ing import duties from 1.) per
cent to $1.) per cent"< he says.
A'e went four months bac*" when the meltdown was seen on the hori,on"< he said. A'e were
there for two to three days a wee*" for four to five wee*s.<
8r. Go*hale:s members have seen a surge in cheap chemicals coming in from 0hina" as 0hinese
producers loo* for alternative mar*ets.
A0hina:s major mar*et was the >2 X now because of the >2 problem" the 0hinese producers
are targeting India. There:s a surge in imports" and because of that the local producers are
suffering. The prices have fallen down almost )H per cent. That:s a major threat.<
.ut no matter how many doors they *noc*ed on" how many civil servants they wheedled and
flattered" they hit a bric* wall.
A'e are not getting through"< he complains. A'e have received nothing in writing" but the
government is not prepared to do it because it is not in the line with 'T( agreements.<
India:s industrial old guard enjoyed highly protectionist import duties up to India:s liberali,ation
in the early $%%Hs. Go*hale remembered when import duties on chemicals were at a prohibitive
$NH per cent.
.ut they have had little luc* fighting India:s slow opening up over the last $) years.
India has too much at sta*e as an exporter to ris* angering the 'T(.
R Gupta of T#8 0onsulting" who has a near monopoly on advising Indian companies see*ing
protection under the 'T( regime" says= AIndia is extra cautious of the 'T(= they will not do
something which is not in line with the law.<
Indian industry:s only option" then" is to use one of the three processes permitted under the 'T(
agreements X anti!dumping duties" safeguard measures and countervailing duties.
AThe time ta*en for getting a relief is a minimum of one year X so it:s not really an effective
remedy for a global recession"< 8r. Gupta said.
AIt ta*es $N months= by the time the duties are imposed" you are finished"< complained 8r.
Go*hale.
The chemicals council has been encouraging its members to initiate anti!dumping procedures"
calling 8r. Gupta to spea* at a conference on it earlier this year.
A'herever it is required people are filing" there is no alternative way out for the domestic
industry"< he says.
India has $& anti!dumping procedures against 0hina launched under the 'T( guidelines. It has
also recently put in place safeguard arrangements.
?ast month" 8r. Gupta initiated the country:s first application for countervailing duties for
Deepa* Bitrite" which is arguing that 0hina is unfairly subsidi,ing its 2odium Bitrite producers.
8r. Gupta is building the case on a similar anti!subsidy move by >2 nitrite producers.
0ontrary to those who fear a wave of tit!for!tat protectionist measures" the problems faced by
Indian industry have not so far led to a notable increase in them.
8r. Gupta said= AThere has not been a significant increase in anti!dumping cases in the first three
months of this year. 'hether increasingly people will come to me" I don:t *now.<
+e said that only five anti!dumping cases were under preparation" which have not yet been
initiated. +e is wor*ing on three of them.
AI have three to four applications" and three to four discussions going on= that:s a normal number
of cases for me over the past $H years.<
+e said the sheer length of time the process can ta*e deterred industries see*ing emergency help.
AThese are immediate problems and this is a long drawn!out process which cannot provide
immediate relief.<
G/ Birmal" a senior executive at Rajaria 0eramics in Delhi" started wor*ing on an application
for anti!dumping measures nine months ago.
It too* five months to initiate the process" and he has been waiting four months since then for a
preliminary judgment. fter that" he expects it to be another six months before a duty is in place.
AIt:s very" very slow. That is the reason we are suffering.< +e said= AThe 0hinese built large
manufacturing tile facilities two years ago" and ocean freight has been reduced to very nominal
rates" so they are dumping in a big way. It:s beginning at Q$.)!QD.) a meter X it should not be less
than Q&. Kor the last two months" 0hinese imports have been increasing by &!) per cent every
month.<
#art of the problem is the number of staff India has in its Directorate General of nti!Dumping X
just DH. 2taff at the European >nion and >2 equivalent is numbered in the hundreds.
s a result it ta*es European companies seven to nine months to get anti!dumping duties
imposed" 8r. Gupta said" while Indian companies have to wait $D to $) months.
Kor 8r. Go*hale" the only hope is that the new government that comes in after next month:s
general election will have fewer scruples.
A'hen the new budget comes with a new government" we will have to approach the
government"< he says.

India`s proposals Regarding the Anti-Dumping Agreement
rticle $) of the greement on Implementation of rticle /I is only a best endeavor
clause. 0onsequently" 8embers have rarely" if at all" explored the possibility of
constructive remedies before applying anti!dumping duties against exports from
developing countries. +ence" the provisions of rticle $) need to be operational ,ed and
made mandatory.
In order to restrict the initiation of bac*!to!bac* investigations" it should be provided that
no investigation would be initiated for a period of IJ) days from the date of finali,ation
of a previous investigation for the same product resulting in non!imposition of duties.
+owever" if for any exceptional reasons such an investigation has to be initiated it must
have the support of at least 1) per cent of the domestic industry.
De Minims Dumping:
o The existing de 8inims dumping margin of D per cent of export price below which no
anti!dumping duty can be imposed needs to be raised to ) per cent for developing
countries" so as to reflect the inherent advantages that the industries in these countries
enjoy comparable production in developed.
o The major users have so far applied this prescribed de 8inims only in newly initiated
case" not in review and refund cases. It is imperative that the proposed de 8inims
dumping margin of ) per cent is applied not only in new cases but also in refund and
review cases
o The threshold volume of dumped imports which shall normally be regarded as negligible
should be increased from the existing I per cent to ) per cent for imports from developing
countries. 8oreover" the stipulation that anti dumping action can still be ta*en even if the
volume of imports is below this threshold level" provided countries which individually
account for less than the threshold volume" collectively account for more than 1 per cent
of the imports" should be deleted.
o The lesser duty rule should be made mandatory while imposing an anti!dumping duty
against a developing country member by any developed country.
o The definition of Asubstantial quantities< as provided for in rticle D.D.D is still very
restrictive and permits unreasonable findings of dumping. The substantial quantities test
should be increased form the present threshold of DH per cent to at least &H per cent.
o In cases where there are no or low sales of li*e product in the domestic mar*et" resort to
constructed value on the basis of cost of production should only be made where the
investigating authorities find that prices charged by the same exporter to third! country
mar*ets are not available or are not representative.
o s developing countries liberali,e" the incidence of dumping in to these countries is
li*ely to increase. It is important to address this concern" since otherwise the momentum
of import liberali,ation in developing countries may suffer. There should therefore be a
provision in the greement" which provides a presumption of dumping of imports from
developed countries into developing countries" provided certain conditions are met.
o #resently there is a different and more restrictive standard of review pertaining to
adjudication in anti!dumping cases. There is no reason why there should be such
discrimination for anti!dumping investigations. +ence" rticle $1 should be suitably
modified so that the general standard of review laid down in the 'T( Dispute 2ettlement
8echanism" applies equally and totally to disputes in the anti!dumping area.
o The annual review provided under rticle $N.J has remained a proforma
Exercise and has not provided adequate opportunity for 8embers to address
issue of increasing anti!dumping measures and instances of abuse of the
greement to accommodate protectionist pressures. This rticle must be
ppropriately amended to ensure that the annual reviews are meaningful and
#lay a role in reducing the possible abuse of the nti!dumping greement.
CONCLUSIONS
nti!dumping duties are levied in derogation o 8KB treatment as product and company specific
duties. Bo action against dumped imports can be ta*en unless the dumped imports can be ta*en
unless the dumped imports can be shown to have caused injury to the domestic industry. (ften
the importers or the consumers of the dumped imports may have an interest opposed to that of
the domestic industry as their main interests lies in getting goods at as cheap a price as possible.
The investigating authorities have" generally held that this may not be in the ultimate interest of
consumers.
Dumped imports" due to unfair competition they offer" may in due course wipe out the
domestic industry which may lead to monopolistic sitituations and limit the choice available to
consumers.
'hile the greement on Implementation of rticle /I of the GTT permits levy of anti!
dumping duties up to the full margin of dumping it recommends levy of lesser duty" if such
lesser duty is adequate to remove injury to the domestic industry. 2ome of these countries"
however" levy full dumping margin asanti!dumping duties" including the >2 and 0anada"
which can be considered to be providing an undue protection out their domestic industry.
s the number of anti!dumping investigations are increasing day by day" they are causing
serious threat to exporters and foreign producers" even if they do not resort to dumping practice
because not only the cost of defending anti dumping actions are heavy it also requires a lot of
time and energy to collect and furnish the requisite information to the investigating authorities.
This may have serious impact on the mar*ets of the targeted exporters. They have" therefore to
be vigilant against frivolous complaints. (n the other hand" the domestic industry also needs to
be prompt in filing anti!dumping applications as it ta*es a considerable time for the authorities to
levy protective measures and any delay may harm the interests of the domestic industry.
s the number if anti!dumping investigations are increasing day by day" they are causing
serious threat to exporters and foreign producers" even if they do not resort to dumping practice
because not only the cost of defending anti!dumping actions are heavy it also requires a lot of
time and energy to collect and furnish the requisite information to the investigating authorities.
This may have serious impact on the mar*ets of the targeted exporters . They have" therefore" to
be vigilant against frivolous complaints. (n the other hand" the domestic industry also needs to
be prompt in filing anti!dumping applications as it ta*es a considerable time for the authorities to
levy protective measures and any delay may harm the interests of the domestic industry.
RECOMMENDATIONS
The domestic industry should avoid any delay in filing of anti!dumping applications" as
anti!dumping duties cannot be applied before JH days form the date of initiation of
investigation.
The domestic industry should build up their own data base which would help them in
anti!dumping investigations against dumped imports.
The exporters and foreign producers would do well to fully co!operate with the
investigating authorities. If they do not cooperate and do not furnish the requisite
information" the authorities may act on the basis of the 9best information available: which
may often be to their disadvantage. .esides" the non!cooperating exporters attract a
higher rate of duty.
The exporters and foreign producers should furnish information and replies to
@uestionnaires within the stipulated time or they should see* extension of time before the
expiry of the given time" as the investigations are to be completed in a time bound
manner and unless the authorities receive a request in time" they may not be able to
consider any information furnished subsequently.
It may be advantageous to the exporters to furnish price!underta*ings as that would
enable them to reali,e more money for their exports instead of allowing the government
of the importing country to recover the differential as anti dumping duties. In both the
cases" the cost to the importers is same.
The exporters should not try to compensate foreign buyers for anti!dumping duties borne
by them as any such action may result in a cascading effect i.e. it may result in levy of
further enhanced anti!dumping duties.
s the number of anti!dumping investigations are increasing both against imports and
exports. 0ommensurate resources would need to be provided for strengthening the
national administrations for conducting investigations as well as for providing the
necessary assistance and guidance to the domestic producers.
.