In general parlance, dumping is considered to mean cheap or low-priced imports. However, dumping in its legal sense under Trade Remedies Law means export of goods by a producer exporter in the exporting country to India at a price lower than its prevailing price in the domestic market of that country.
For initiation of an Anti-dumping investigation, it is essential that sufficient evidence is available for dumping of alleged goods and said dumped imports are causing material injury or threatening to cause material injury or causing material retardation to the establishment of the domestic industry.
Broadly, injury may be analysed in terms of the volume effect and price effect of the imports. The parameters by which injury to the domestic industry is to be assessed in the anti-dumping proceedings are well elaborated in Annexure-II of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping duty on dumped articles and for Determination of Injury) Rules, 1995 comprising of such economic indicators as having a bearing upon the state of industry including the natural and potential decline in sales, profits, output, market share, productivity, return on investments or utilization of capacity; factors affecting domestic prices; the magnitude of the margin of dumping; actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital investment etc.
The Injury Margin is the difference between the Non-Injurious Price and the Landed Value of the dumped imports of the like articles. Landed Value for this purpose is taken as the assessable value under the Customs Act and the applicable basic Customs duties except for CVD, SAD, and special duties. To know more please refer to the attached briefings.
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