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Anti-Dumping Duty on Copper Products

Anti-Dumping Duty:

The government has decided not to impose Anti-Dumping Duty (ADD) on imports of certain copper products, from China, Thailand, Korea and three other countries.

  • In April, Directorate General of Trade Remedies (DGTR) recommended imposing the duty on “copper and copper alloy flat-rolled products” from China, Korea, Malaysia, Nepal, Sri Lanka and Thailand, after conducting a probe.
  • However, the Ministry of Finance takes the final call to impose these duties and issues notification for the same.

Anti Dumping Duty:

  • Dumping is said to occur when the goods are exported by a country to another country at a price lower than the price it normally charges in its own home market.
  • This is an unfair trade practice which can have a distortive effect on international trade.
  • Objective:
    • Imposition of Anti-dumping duty is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect.
    • In the long-term, anti-dumping duties can reduce the international competition of domestic companies producing similar goods.
    • It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
    • The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organisation.

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