Dumping
is said to occur when the goods are imported into India is less than the
‘normal value’ of ‘like articles’ sold in the domestic market of the exporter
OR when the goods are exported by a country to another country at a price lower
than its normal value.
This
is an unfair trade practice which can have a distortive effect on international
trade. Anti dumping is a measure to rectify the situation arising out of the
dumping of goods and its trade distortive effect. Thus, the purpose of anti
dumping duty is to rectify the trade distortive effect of dumping and
re-establish fair trade. The use of anti dumping measure as an instrument of
fair competition is permitted by the WTO. In fact, anti dumping is an
instrument for ensuring fair trade and is not a measure of protection per se
for the domestic industry. It provides relief to the domestic industry against
the injury caused by dumping.
Dumping does
not mean cheap or low priced imports