Dumping is said to have taken place when an exporter sells a product to India at a price less than the Normal Value of dumping- like articles' sold in the domestic market of the exporter. However, imports at a cheap or low prices do not indicate dumping. The normal value is the comparable price at which the goods under complaint fare sold, in the ordinary course of trade, in the domestic market of the exporting country or territory.

 

This is an unfair trade practice which can have a distortive effect on international trade. Anti-dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti-dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The use of anti-dumping measure as an instrument of fair competition is permitted by the WTO. In fact, anti-dumping is an instrument for ensuring fair trade and is not a measure of protection per se for the domestic industry.