What is Dumping ?

AEJAZ AHMED (Legal Consultant/Lawyer) 22 February 2009

DEAR SHEETAL,

Visit on the following site :

https://www.helplinelaw.com/docs/antidumping/antidumping.shtml

AEJAZ AHMED (Legal Consultant/Lawyer) 22 February 2009

Dumping:

Dumping means export of goods by one country / territory to the market of another country / territory at a price lower than the normal value. If the export price is lower than the normal value, it constitutes dumping. Thus, there are two fundamental parameters used for determination of dumping, namely, the normal value and the export price. Both these elements have to be compared at the same level of trade, generally at ex-factory level, for assessment of dumping.

Parties Who can file an anti-dumping application:

Interested parties in an anti-dumping investigation :

The interested parties to an anti-dumping investigation include:

· the domestic industry on whose complaint the proceedings are initiated;

· The exporters or the foreign producers of the like articles subject to investigation;

· The importers of the same article allegedly dumped into India ;

· The Government of the exporting country/ countries.

· The trade or business associations of the domestic producers/ importers/ user industries of the dumped product.

N.K.Assumi (Advocate) 22 February 2009

Often, dumping is mistaken and simpified to mean cheap or low priced imports. However, it is misunderstanding of the term. On the other hand, dumping, in its legal sense,means export of goods by a country to another country at a price lower than its normal value. Thus, dumping implies low priced imports only in the relative sense ( relative to the normal value, and not in absolute sense.

Import of cheap products through illegal trade channels like smuggling do not fall within the purview of anti-dumping measures.

N.K.Assumi (Advocate) 22 February 2009

Application can be made by or on behalf of the concerned domestic industry to the designated Authority in the department of Commerce for an investigation into alleged dumping of a product into India. under the Rules a valid application can be made only by tghose petitioners/domestic producers who expressly support the pplication,and account for more than 25% of total domestic productions of the like article in question.

The application is deemed to have been made by or on behalf of the domerstic industry, if it is supported by those domestic producers whose collective output constitues more than 50% of the total productions of the like article produced by that portion of the domestic industry expressing either support or opposition as the case may be, to the application.

However, such producers may exclude those who are related to the exporters or importeras of the alleged dumped article or are themselves importers thereof. In other words, a domestic producers who is related to the exporters or importes ofthe dumped article or is himself an importer thereof, may not be treated as part of the domestic industry even if he files or support an anti dumping petition.

(Guest)

NANDKUMAR B.SAWANT.,M.COM.LL.B.(MUMBAI),ADVOCATE

MOBILE.09325226691,09271971251

e.mail.adv.nbsawant@yahoo.co.in

e.mail.nandkumarbs@sify.com

REGARDING YOUR QUESTION ABOUT DUMPING, KINDLY NOTE AS UNDER

1.DICTIONARY MEANING OF DUMPING AND COMMERCIAL MEANING OF DUMPING IS DIFFERENT.

DUMPING IS A POLICY OF ANY COMPANY TO DUMP GOODS IN NEW MARKET AT A VERY LOW PRICE .THE INTENTION BEHIND IT IS TO DISTROY THE LOCAL INDUSTRIES. BECAUSE LOCAL INDUSTRIES MANUFACTURING THE SIMILAR TYPES OF GOODS CAN NOT SELL THEIR GOODS IN THE LOCAL MARKET AS THEIR PRICES WILL BE HIGHER AND CUSTOMER WILL NOT PURCHASE THEIR GOODS .IT WILL RESULT IN LOSS TO THE LOCAL INDUSTRIES. AND ULTIMATELY THE LOCAL INDUSTRIES WILL CLOSE DOWN..

IN EVERY COUNTRY THERE ARE LAWS PASSED BY LOCAL GOVT. TO PROTECT LOCAL INDUSTRIES.

IT IS ALSO CONCERNED TO FREE TRADE POLICY ADOPTED BY THE LOCAL GOVERNMENT. IF FREE TRADE IS ALLOWED FOREIGN COMPANIES WILL TRY TO DUMP THEIR GOODS IN LOCAL MARKET INITIALY AT A VERY LOW PRICE AND THEY WILL DISTROY LOCAL INDUSTRIES WHICH WILL CLOSE DOWN DUE TO HEAVY LOSS DUE TO NO SELL AND BLOCKING OF FUNDS AND INVESTMENT IN THE INDUSTRY.

ONCE THE LOCAL INDUSTRIES CLOSE DOWN , THE FOREIGN COMPANIES WHO HAVE DUMPED THE GOODS IN LOCAL MARKET WILL ENJOY MONOPOLY IN THE MARKET AND THEY WILL INCREASE THE PRICE SUDDENLY RESULTING LOSS TO THE COMMON CITIZENS AND LOCAL CUSTOMERS.

HENCE TO PREVENT THIS SITUATION LOCAL GOVERNMENTS APPLY THE POLICY OF RESTRICTION ON FREE TRADE AND IMPOSE HEAVY TAXES ON IMPORT OF GOODS SO THAT THE PRICE OF IMPORTED GOODS WILL NOT BE LESS THAN THE PRICE OF LOCAL INDUSTRIAL GOODS.

KINDLY NOTE THIS IS COMMERCIAL TERM AND AS A COMMERCE AND LAW DEGREE HOLDER I CAN GIVE OPENION THAT IN LONG RUN DUMPING POLICY IS HARMFUL TO LOCAL INDUSTRIES AND IN CASE OF WAR SITUATION FOREIGN COMPANIES WILL HOLD SUPPLIES AND IN CASE LOCAL INDUSTRIES ARE NOT ALLOWED TO SURVIVE THEN HEAVY PRICE RISE AND SHORT SUPPLY OF GOODS SITUATION ARISES AND LOCAL CUSTOMERS AND POOR CITIZENS HAVE TO SUFFER LOSSES.

LEGAL REMEDY IS AVAILABLE TO THE AGGRIEVED PARTIES THEY CAN APPROACH LOCAL COURTS FOR LEGAL HELP AND CLEARLY STATE THE IRREPAIRABLE LOSSES SUFFERED BY THEM AND CAN CLAIM COMPENSATION AND DAMAGES FROM THE COMPANY DUMPING GOODS AND ALSO THE LOCAL AUTHORITIES. AND PRAY FOR STAY OR OTHER INTERIUM RELIEF FROM LOCAL COURTS.

(Guest)

NANDKUMAR B.SAWANT.,M.COM.LL.B.(MUMBAI),ADVOCATE

MOBILE.09325226691,09271971251

e.mail.adv.nbsawant@yahoo.co.in

e.mail.nandkumarbs@sify.com