India imposed anti-dumping duty on imports of a certain type of the steel products from China, Vietnam, as well as Korea for 5 years with a view to guard domestic manufacturers from the cheap imports from those countries on Tuesday. It imposed anti-dumping duty on the imports of a certain type of steel products from China, Vietnam, and also Korea for five years with the view to a guard domestic manufacturers from cheap imports from those countries. The duty that imposed is in the range of around USD 13.07 per tonne to around USD 173.1 per tonne on imports of the ‘Flat-rolled product of the steel, plated or coated with an alloy of Aluminium and also Zinc’ from those 3 countries as well.
The duty was ideally imposed after the Commerce Ministry’s investigation arm Directorate General of the Trade Remedies (i.e. DGTR), in its probe, which concluded that the product was exported to India by those countries below its associated normal value, for which it resulted in dumping and in turn impacting domestic players.
“The anti-dumping duty that imposed under the notification shall be effective for a period of around five years that unless revoked, amended or superseded earlier from the date of imposition of the provisional anti-dumping duty, that is, 15th October 2019,” as the department of the revenue told in a notification as well.
In international trade parlance, the dumping happens whenever a country or a firm exports an item at a price that lower than the price of that the product in its domestic market. Dumping impacts of the price of that product in the importing country, mainly hitting margins and also profits of manufacturing firms.
As according to the global trade norms, a country is literally allowed to impose the tariffs on such as dumped products to offer a level of playing field to domestic manufacturers as well. The duty is ideally imposed only after a thorough investigation by the quasi-judicial body, such as DGTR, that in India. The imposition of an anti-dumping duty is permissible under the World Trade Organization (i.e. WTO) regime. The duty is clearly aimed at assuring the fair trading practices and also creating a level-playing field for the domestic producers vis-a-vis foreign producers and also exporters as well.