India imposed an anti-dumping duty on Tuesday for five years on imports of a certain type of steel products from China, Vietnam and Korea with a view to guarding domestic producers against cheap imports from those countries. The duty levied on shipments of 'Flat-rolled steel sheet, plated or coated with an alloy of Aluminum and Zinc' from these three countries is between USD 13.07 per tonne and USD 173.1 per tonne.
The duty was levied after the investigative arm of the Commerce Ministry's Directorate-General of Trade Remedies (DGTR) concluded in its inquiry that the product was exported to India by those countries below its associated standard value, resulting in dumping and, in effect, impacting domestic players.
"The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, amended or superseded earlier) from the date of imposition of the provisional anti-dumping duty, that is, October 15, 2019," the department of revenue said in a notification.
Dumping happens in international trade aspects when a country or a company exports a commodity at a price lower than that product's domestic market price. Throughout the importing country, dumping impacts the price of the commodity, impacting the margins and earnings of manufacturing firms.
A country is allowed to impose tariffs on such dumped products in accordance with global trade norms to provide domestic manufacturers with a level playing field. The duty is only imposed in India following a thorough investigation by a quasi-judicial body, such as DGTR.
Under the World Trade Organization (WTO) regulation, the implementation of the anti-dumping duty is permitted. The purpose of the duty is to ensure fair trade practices and create a level playing field for domestic producer’s vis-à - vis foreign producers and exporting companies.