Anti Dumping Current Affairs
Union Ministry of Commerce and Industry issued notification for creation of Directorate General of Trade Remedies (DGTR) in Department of Commerce. In this regard amendments were made in Government of India (Allocation of Business) Rules, 1961.
Directorate General of Trade Remedies
DGTR will be apex national authority for administering all trade remedial measures including anti-dumping, countervailing duties and safeguard measures. It will bring Directorate General of Anti-dumping and Allied duties (DGAD), Directorate General of Safeguards (DGS) and Safeguards (QR) functions into its fold by merging them into one single national entity. It will also provide trade defence support to our domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.
It will serve as multi service organization drawing upon the skill-set of various officers from various ministries in the field of International Trade, Customs, Revenue, Finance, Economics, Costing and Law. Creation of DGTR will result in savings of 49 posts to Government on account of merging DGAD and DGS. Thus, its establishment will be in line with Government’s goal of “Minimum Government Maximum Governance.
In recent years, Government had initiated more than 130 anti-dumping, countervailing duty and safeguard cases to deal with rising incidences of unfair trade practices and provide a level playing field to domestic industry. The issue of creation of DGTR was pending since 1997 to provide a level playing field to domestic industry.
The Union Government has imposed anti-dumping duty on imports of steel wire rods from China to protect domestic manufacturers from cheap in-bound shipments.
In this regard, the Department of Revenue (DoR) has issued a notification mentioning that dumping duty has been imposed for six months.
What is the case?
- The protectionist measures against cheap Chinese imports were taken based on the recommendation of Directorate General of Anti-Dumping and Allied Duties (DGAD).
- DGAD in its investigation had found that steel wire rods were being exported by China below normal value and the domestic industry suffered material injury because of such cheap imports.
What are applications of steel wire rods?
Wire rod of alloy or non-alloy steel finds applications in many sectors such as automotive components, fasteners, welding electrodes, binding wires for construction industry and armoured cables.
What is anti-dumping duty?
Anti-dumping duty is an import duty imposed by government on imported products which have prices less than their normal values or domestic price. Thus, it is protectionist and counter import measure used by a country under the multilateral World Trade Organisation (WTO) regime to protect its domestic producers and market from below-cost/cheap imports. It varies from product to product and from country to country. In India, anti-dumping duty to be levied is recommended by the Union Ministry of Commerce (i.e. by DGAD), while the Union Finance Ministry imposes it. So far, India has initiated maximum anti-dumping cases against “below-cost” imports from China.