Anti-dumping duty is a measure to rectify the situation arising out of the dumping of goods and its distorting effect on domestic producers of similar goods. 

The concept of dumping and subsidisation has long been known. Rapid industrialisation has resulted in large-scale production – and in this situation dumping enables the producer to establish a dominant position in the market. 

‘Dumping’ is when an exporter sells their products to another country at a price less than the price prevailing in their domestic market. 

It is common in international commercial practice for export prices to be lower than the domestic ones so there is, as such, nothing inherently illegal or immoral about the practice of dumping. However, when dumping causes or threatens to cause, material injury to the domestic industry it is viewed seriously. 

The effect of dumping has been felt by India’s domestic industries recently with the removal of ‘quantitative restriction’ and lowering of custom duty.

Indian laws were amended with effect from 1 January 1995 to bring them in line with the provisions of the respective GATT agreements. Sections 9A, 9B and 9C of the Customs Tariff Act 1975 as amended in 1995 and the Customs Tariff (Identifi cation, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995, form the legal basis for anti-dumping investigations and imposition of duty.

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