Anti-Dumping Duty is a tax imposed by a government on imported goods that are sold at an unfairly low price to protect domestic industries from economic harm.
Anti-Dumping Duty is a trade protection measure used by countries to prevent foreign companies from selling goods at prices lower than their normal value or cost of production. This practice, known as dumping, can damage local manufacturers by creating unfair competition.
When a government finds that dumped imports are causing or threatening to cause injury to domestic industries, it may impose anti-dumping duty on those goods. The duty increases the price of the imported product, making competition fair for local producers.
In India, anti-dumping duties are imposed after detailed investigations and are usually product-specific and country-specific. These duties are not permanent and are generally reviewed periodically. The main objective is not to stop imports, but to ensure fair trade practices in the market.
"If steel is imported into India at a very low price from another country and it harms Indian steel manufacturers, the government may impose an anti-dumping duty on the imported steel to protect domestic producers."