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.
- 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.