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Initiating an Anti Dumping Investigation
The following are essential for initiating an anti-dumping investigation:-
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Sufficient evidence (Bill of Entry, Invoices, Letter from the Indian Mission in the subject country, Data from secondary sources like specialized commodity journals etc. as to the existence of dumping in relation to the goods imported from the subject country) to the effect that
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there is dumping
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there is injury to the domestic industry; and
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there is a causal link between the dumping and the injury, that is to say, that the dumped imports have caused the alleged injury.
- The domestic producers expressly supporting the anti-dumping application must account for not less than 25% of the total production of the like article by the domestic industry.
The application is deemed to have been made by or on behalf of the domestic industry, if it is supported by those domestic producers whose collective output constitute more than 50% of the total production of the like article produced by that portion of the domestic industry expressing either support for or opposition as the case may be, to the application.
Determining the injury to the domestic industry
Broadly, injury may be analysed in terms of the volume effect and price effect of the dumped imports. The parameters by which injury to the domestic industry is to be assessed in the anti-dumping proceedings are such economic indicators having a bearing upon the state of industry as the magnitude of dumping, and the decline in sales, selling price, profits, market share, production, utilisation of capacity etc.
Establishing link between dumping and injury to the domestic industry
In the anti-dumping proceedings, it is imperative to prove that the dumping has caused injury to the domestic industry. Anti dumping duty shall not be recommended without a finding of this causal relationship.
The causal link is to be established generally in terms of the following effects of dumped imports on domestic industry:-
- volume effect
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price effect
The volume effect of dumping relates to the market share of the domestic industry vis-à-vis the dumped imports from the subject country while with regard to the price effect, the Designated Authority shall consider whether there has been a significant price under cutting by the dumped imports as compared with the price of the like product in India, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increase which otherwise would have occurred to a significant degree.
Interested parties in an anti-dumping investigation
The interested parties to an anti-dumping investigation include:
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the domestic industry on whose complaint the proceedings are initiated;
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The exporters or the foreign producers of the like articles subject to investigation;
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The importers of the same article allegedly dumped into India ;
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The Government of the exporting country/countries.
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The trade or business associations of the domestic producers/importers/user industries of the dumped product.
Any representative duly authorised by the petitioner/interested parties/ Association etc. can appear in the Anti-dumping cases to represent the concerned parties.
Extent of anti-dumping duty
Under the WTO arrangement, the National Authorities can impose duties upto the margin of dumping i.e. the difference between the normal value and the export price. The Indian law also provides that the anti-dumping duty to be recommended/levied shall not exceed the dumping margin.
Minimum Level Of Imports
Individual exporter:
Any exporter whose margin of dumping is less than 2% of the export price shall be excluded from the purview of anti-dumping duties even if the existence of dumping, injury as well as the causal link is established.
Country:
Further, investigation against any country is required to be terminated if the volume of the dumped imports, actual or potential, from a particular country accounts for less than 3% of the total imports of the like product.
However, in such a case, the cumulative imports of the like product from all these countries who individually account for less than 3%, should not exceed 7% of the import of the like product. |
