Definition
Anti-Dumping Duty
Anti-dumping duty is a protective levy imposed on imports priced below their normal value to shield domestic industry from unfair foreign competition.
When foreign producers export goods to India at prices below what they charge at home — dumping — domestic manufacturers can be injured. After an investigation by the designated authority, the government can impose an anti-dumping duty equal to the margin of dumping to level the playing field.
Unlike basic customs duty, anti-dumping duty is product- and country-specific and time-bound, subject to periodic review. It is a trade-remedy measure permitted under WTO rules, distinct from ordinary tariffs, and is among the most frequently used trade defences by Indian industry.
Related terms
- Customs DutyCustoms duty is the tax levied on goods imported into, or in some cases exported from, India, administered under the Customs Act.
- Basic Customs DutyBasic customs duty is the primary tariff levied on imported goods as a percentage of their assessable value, forming the core of India's import tax.
- Countervailing DutyCountervailing duty is a tariff imposed to neutralise the benefit of subsidies given by a foreign government to its exporters.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.