Union Government extends anti-dumping duty on certain Chinese products
The Union Government has extended anti-dumping duty on import of certain Chinese products, used in garment, toys and footwear manufacturing, for another five years i.e. till 2021.
Decision in this regard was taken by Central Board of Excise and Customs (CBEC) based on recommendations of the Directorate General of Anti-Dumping and Allied Duties (DGAD).
This extension will protect domestic industry from the harm caused by dumping (import) of the cheap Chinese products.
- The DGAD made the case for continuation of the anti-dumping duty on Chinese products after its second sunset review of the anti-dumping duty in force on the imports.
- Earlier in October 2010, the Revenue Department of the Unio Finance Ministry had extended the levy (anti-dumping duty) till October 2015.
What is Anti-Dumping Duty?
- Anti-Dumping Duty is a trade levy imposed by any government on imported products which have prices less than their fair normal values in their domestic market.
- Thus, it is protectionist tariff that seeks to stop dumping process where company exports a product at a price lower than price it normally charged in domestic market of importing countries’.
- Anti-Dumping Duty is imposed under the multilateral World Trade Organisation (WTO) regime and varies from product to product and from country to country.
- In India, anti-dumping duty is recommended by the Union Ministry of Commerce (i.e. by DGAD), while the Union Finance Ministry imposes it.
Categories: India Current Affairs 2017