Union Government Extends Anti-Dumping Duty on Certain Chinese Products (Download PDF)

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Revenue department has extended the anti-dumping duty on import of certain Chinese products, used in manufacturing shoes, toys, garment, and footwear and other industrial segments for another five years until 2021. This decision was taken by Central Board of Excise and Customs (CBEC).

Image of Anti-Dumping Duty

Image of Anti-Dumping Duty

Image of Anti-Dumping Duty

  • Based on recommendations of the Directorate General of Anti-Dumping and Allied Duties (DGAD).
  • Extension will safeguard domestic industry from the harm caused by dumping (import) of the cheap Chinese products.
  • Anti-dumping duty on ‘narrow woven fabrics hook and loop Velcro tapes’ will be charged at the rate of USD 1.87 per kg.
  • Anti- dumping is an instrument for fair trade. It will provide a level playing field to domestic industry.

Background on Anti-Dumping

  • DGAD made the case for extension of the anti-dumping duty on Chinese products
  • After levy’s second review it will be in force on the imports.
  • Previously in October 2010, the Revenue Department of the Union Finance Ministry had extended the anti-dumping duty till October 2015.

What is Anti-Dumping Duty?

  • Anti-Dumping Duty is a protectionist tariff- imposed by domestic government on foreign imports to protect the local industries.
  • Imposed by government on imported products that have prices less than their fair normal values in the domestic market.
  • Dumping is a process where a company exports a product at a lower price than it normally charges on its own home market.
  • Many countries impose stiff duties on products they believe where dumped to protect local businesses and markets.
  • Anti-Dumping Duty is imposed under the multilateral World Trade Organisation (WTO) agreements.
  • Different from product to product and from country to country.
  • Recommended by the Union Ministry of Commerce and imposed by Union Finance Ministry.

- Published/Last Modified on: October 10, 2016

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