How does Anti dumping duty work?

 

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Anti dumping duty

What does anti dumping duty mean?


Antidumping duty under import duty calculationThe reason for imposing anti dumping duty is for rectification of trade distortive effect of dumping and re establishes fair trade. World Trade Organization WTO members as per GATT (General Agreement on Tariff and Trade) permit their member countries to take individual decision on imposing such anti dumping duty to ensure fair trade rather than protecting domestic industry.

What is anti dumping duty?

Anti dumping duty is protectionist tariff that a domestic government imposes on imports to balance the price of such imports in domestic country, as such import products believes are priced below fair market value.


Let me explain about anti dumping duty in simple terms. The anti dumping duty is some kind of penal charges imposed to an importer against suspiciously low priced import products. Anti dumping duty is charged to increase price in the importing country and so protect local industry from unfair competition.

Here, the goods are exported by a nation to another country at a price lower than the normal value. The antidumping duty is imposed to protect from unfair trade practice to re establish the fair trade. In other words, antidumping duty is imposed not a measuring rode to protect domestic, but relief to domestic country against injury caused in dumping goods.

The calculation of antidumping duty is done on the basis of difference between FOB price of importing country and the market price of similar goods in exporting country or other countries.

A brief description about the subject is explained here.   You may contact concerned government agency for latest update.     

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Although demand and supply plays a major role in determining market price of a product, anti dumping duties are believed to distort the market.

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Here, the details and meaning of antidumping duty are explained. You may share your views about anti dumping duty below:

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Comments


Troy : I found you on the Internet talking about dumping duties. I have a quick question for you. I live in the US and and the DOC here this month announced it is is imposing a 232.3% anti-dumping duty on imported R-134A refrigerant from China. I'm want to import a product that contains R-134A from China. How do I calculate my anti-dumping duty cost of the product? Any help would be appreciated. Thanks,

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