REGULATORY FRAMEWORK OF ANTI DUMPING LAWS IN INDIA

Abstract

Antidumping law is a trade policy instrument sanctioned by the WTO, which results in the deviation of the two pillars of the WTO viz. MFN and Bound Rates. Deemed to be a “trade remedial measure” it seeks to discipline the conduct of firms exporting into their jurisdictions. It is designed to prevent the export of goods in to a foreign market at prices less than the “normal value.” Put simply, if an article is sold in the exporting country at 200, but exported at 150, even though it may cost 100 to make, it is dumping. Dumping, through a requirement that the domestic selling price must be in the ordinary “course of trade” which inter alia requires that it must be above the cost of production, also addresses the situation where an article is sold blow cost. To use an extreme example, if the article is sold in the domestic market at 90, exported at 95, but costs 100 to make – this is dumping as well. Over the years, anti-dumping has become an effective tool for several countries to protect their domestic industry from foreign competition, thereby eliminating competition from dumped imports to like or similar goods manufactured by domestic industry.