Anti-Dumping Duty Example

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The World Trade Organization (WTO) regulates how the governments of different countries can react to dumping. WTO keeps a check on the process of anti-dumping to discipline this action. This is referred to as Anti-Dumping Agreement. This agreement enables governments to take necessary action in cases where dumping is seriously impacting the domestic industry.

It has been agreed that the governments of the countries facing challenges due to dumping must collate the necessary data to show that they are facing this issue. They must calculate the extent to which dumping is taking place by considering the exporter’s home market price. The governments must prepare a report to show that the dumping is leading to losses for their domestic businesses. This helps determine whether or not the Anti anti-dumping duty levied by them is justified.


Let us understand anti-dumping duty in a better way with the help of a few afghanistan phone number list examples. For instance, China produces mobile phones and sells them in its local market for an amount which is equivalent to INR 15,000. However, the same product is sold at a lower price by that Chinese brand when it is exported to India or some other country. This means that it sells the same mobile phones for INR 10,000 in the Indian market knowing well that similar mobile phones are being sold at INR 12,000 or more in India. The exporter strategically chooses to sell the product at a lower price to capture the market. In this scenario, China is dumping its mobile phones into India to get an unfair advantage.

Let us take a look at another example. Supposedly, local brands in India are selling luxury wristwatches for men and women at INR 10,000. A well-known luxury watch brand in Switzerland targets India to expand its market. It will start its expansion plan by studying the prevailing rates of watches in India. It will sell luxury watches with similar features for INR 7,000 (or anything less than INR 10,000). Even though the brand may be selling the same watches for INR 12,000 in its domestic market, it will slash the rates for Indian customers to make its place in the Indian market. Here, you can say that Switzerland is dumping its luxury watches in India.