Dumping occurs when the export price of goods imported into India is less than the Normal Value of ‘like articles’ sold in the domestic market of the exporter. Imports at cheap or low prices do not per se indicate dumping.
The price at which like articles are sold in the domestic market of the exporter is referred to as the “Normal Value” of those articles.
 Normal Value
 The normal value is the comparable price at which the goods under complaint are sold, in the ordinary course of trade, in the domestic market of the exporting country or territory..
If the normal value cannot be determined by means of domestic sales, the Act provides for the following two alternative methods :
-  Comparable representative export price to an appropriate third country.
- Cost of production in the country of origin with reasonable addition for administrative, selling and general costs and for profits.
Export Price
The export price of goods imported into India is the price paid or payable for the goods by the first independent buyer.
Margin of Dumping
Margin of dumping refers to the difference between the Normal Value of the like article and the Export Price of the product under consideration. Margin of dumping is normally established on the basis of –
(i) a comparison of weighted average Normal Value with a weighted average of prices of comparable export transactions; or
(ii)  comparison of normal values and export prices on a transaction to transaction basis.
A Normal Value established on a weighted average basis may be compared to prices of individual export transactions if the Designated Authority finds a pattern of export prices that differ significantly among different purchasers, regions, time period, etc. It is significant to note that the alternative method of comparing the normal values and export prices is a major change introduced after the Uruguay Round.
The margin of dumping is generally expressed as a percentage of the export price
 Duties are imposed on a source specific basis and can be expressed either on ad valoren or specific basis. Non-cooperative exporters are required to pay the residuary duty, which is generally the highest of the co-operative exporters.

Thursday, 03rd Sep 2015, 11:59:49 AM

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