Context
To protect domestic industry from unfair trade practices, the Indian government has intensified scrutiny of import surges and dumping.
Relevance : GS 3(Indian Economy- Anti Dumping , Import, Export)
Key Developments
- Anti-Dumping Actions (June 2025):
- Directorate General of Trade Remedies (DGTR) initiated 8 anti-dumping investigations.
- Targeted products from 12 countries/groupings:
- Countries involved: China, Taiwan, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, UAE, Switzerland, EU, Egypt, Indonesia.
- Products: Industrial chemicals, glass wool, paperboards.
- Import Monitoring Mechanism:
- Department of Commerce is monitoring all commodities for unusual import surges.
- Data shared with other ministries to enable coordinated monitoring.
- Use of DGFT to Counter Malpractices:
- Directorate General of Foreign Trade (DGFT) empowered to restrict imports suspected of malpractice.
- Example: DGFT restricted imports of alloys (palladium, rhodium, iridium with >1% gold) as gold was being misdeclared to evade duty.
Static Concepts: Anti-Dumping & Import Surge
- Dumping:
- Exporting a product at a price lower than its normal value (often below cost or domestic price).
- Harms domestic industries through unfair price competition.
- Anti-Dumping Duty:
- Levied by importing countries to counteract dumping and restore fair trade.
- DGTR (Directorate General of Trade Remedies):
- Apex authority for investigating trade remedy cases: anti-dumping, countervailing, and safeguard measures.
- Import Surge:
- Sudden spike in imports, potentially harming domestic producers even without dumping.
Why It Matters?
- Ensures a level playing field for Indian industries.
- Prevents misuse of free trade provisions and duty evasion.
- Strengthens Atmanirbhar Bharat and domestic manufacturing.
Anti-Dumping: Basics
- Definition: Dumping refers to exporting goods at prices lower than their normal value (often below cost or domestic price).
- Anti-Dumping Duty: A tariff imposed by a country to protect its domestic industry from unfairly priced imports.
Anti-Dumping in India
- Authority: Investigated and recommended by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce.
- Legal Basis: Governed by the Customs Tariff Act, 1975 and WTO Agreement on Anti-Dumping (to which India is a signatory).
Objectives
- Protect domestic industries from injury due to dumped imports.
- Ensure fair competition, not to restrict legitimate trade.
- Provide a level playing field, not as protectionism.
