Indian Govt. Imposes Anti-Dumping Duty On 93 Chinese Products; Counters China’s Aggression

Mobile Phones May Become Expensive


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China’s aggression, at least in business and commerce, has been counter checked by Indian Govt. In a response to a question, Commerce and industry minister Nirmala Sitharaman informed the Rajya Sabha that India has imposed anti-dumping duty across 93 Chinese products.

Besides, Directorate General of Anti-Dumping and Allied Duties has initiated investigation across 40 cases of dumping by Chinese exporters, and action would be soon taken against them.

She said, “Anti-dumping duty is in force on 93 products concerning imports from China,”

She also informed that imports from China during 2016-17 marginally dropped to $61.28 bn, from $61.7 bn a year back.

As per the reply given by the Minister, the products wherein anti-dumping duty has been imposed are part of these categories: chemicals and petrochemicals, products of steel and other metals, fibres and yarn, machinery items, rubber or plastic products, electric and electronic items and consumer goods.

Electronic items and consumer goods are also included in the anti-dumping duty list, which means that Chinese mobile phone prices sold in India may go up in coming days.

What Is Anti-Dumping Duty?

In the world of economics, Dumping is a predatory pricing, especially in the sectors of imports and exports.

Dumping happens when a manufacturer or exporter sells a products to another country at a price which is lower than the original manufacturing cost, or lower than the price of the same product in the home country.

Say Chinese manufacturer called ABC Inc. makes water bottles, which each costs Rs 15 to make. ABC Inc. sells the same water bottles for Rs 20 in China, thereby making a profit of Rs 5.

However, now they want to sell the same product in Nepal, and aims to grab a market share.

ABC Inc. enters Nepal, and sells the same water bottle for Rs 10. Now, this selling price is lower than what it is selling for in China, and certainly lower than any water bottle being sold in Nepal.

In such case, the Govt. of Nepal can impose anti-dumping duty on the water bottles being sold by that Chinese manufacturer in Nepal. When this happens, then an additional charge is imposed on those products where anti-dumping duty is being imposed.

Hence, naturally, the cost of the product may increase, if the manufacturer doesn’t reduce the price.

Anti-Dumping Laws in India

In India, anti-dumping laws are governed by Section 9A and 9B of Customs and Tariffs Act, 1975 (Amended 1995) and The Anti-dumping rules such as (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules of 1995, Section 9A of customs and tariffs Act 1975.

The law states that “If any article is exported from any country or territory to India at less than its normal value, then, upon the importation of such article into India, the central government may by notification in the official gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.”

Directorate General of Anti-Dumping and Allied Duties (DGAD) is the authority which recommends anti-dumping laws, and Govt. imposes them.

As of November, 2016, DGAD have imposed 353 anti-dumping duties across various products.

It is not just China against whom anti-dumping duties have been imposed (although the proportion is certainly highest). In January 2017, India imposed anti-dumping duty on colour coated steel products imported from the European Union and China for 6 months.

Here is a summary of major products, on which anti-dumping duties have been imposed in the past.

Do you think prices of smartphones sold by Chinese companies can increase after this anti-dumping duty imposition? Do let us know by commenting right here.

1 Comment
  1. deep gajera says

    i want to information about anti-dumping duty.

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