DUMPING,ANTI DUMPING

 Dumping: the selling of goods at a price below cost or below that

in the home country
 To protect local industry
 To raise revenue
 To reduce foreign expenditures by citizens in order to improve the
country’s balance of payments

DUMPING,ANTI DUMPING
 Dumping-Selling goods overseas for less than in the exporter`s
home market, at a price below the cost of production , or both.

 Dumping ranges from predatory to unintentional.

 Predatory dumping is the tactic of a foreign firm that

intentionally sells at a loss in another country to increase its
market share at the expense of domestic producers.

 This amounts to an international price war.

ANTI DUMPING POLICIES

 Predatory pricing is the tactic of a foreign firm that intentionally
sells at a loss in another country to increase its market share at
the expense of domestic producers.

 Unintentional dumping is the result of time lags between

the date of sale transactions, shipment and arrival.
 Anti dumping policies are designed to punish foreign firms that
engage in dumping.
 The objective is to protect domestic producers from unfair foreign
competition.
 Anti dumping policies vary from country to country.
 In US, if a domestic producer believes that a foreign firm is
dumping products in the US market, it can file a petition with two
Govt agencies., the Commerce Department and the
International Trade Commission (ITC).
 Eg. Korean DRAM case
 Micron Technology, a US manufacturer of DRAM chips filed a
petition.
 If a complaint has merit,the Commerce Department may impose
an antidumping duty on the offending foreign imports.
 These Tariffs will stay in place for upto five years.
 After reviewing Micron`s complaint, the Commerce Department
imposed 9 % and 4% antidumping duties( Countervailing Duties)
on LG Semicon and Hyundai DRAM chips, respectively.
 It was alleged that these firms were trying to unload their excess
production in the US.
 Eg. 2 US Magnesium seeks protection
 In October 2013,India has imposed anti-dumping duty of $787
per tonne on import of paracetamol, a widely used medicine,
from China for five years to protect interest of domestic players
from the cheap shipments.
 Anti dumping duty on Paracetamol has been there since 2001.

EG 3:INDIA SLAPS ANTI-DUMPING DUTY ON

CHINESE PARACETAMOL
 Hot rolled flat products of alloy or non alloy steel is exported to
India at below normal value from Indonesia, Korea, China, Brazil,
Japan, Russia.
 Anti-dumping duty of 557 dollar per tonne is imposed .
 Petition by Essar Steel, Steel Authority of India and JSW Steel.

EG 4:INDIA IMPOSES ANTI-DUMPING DUTY

ON STEEL PRODUCTS