Anti-Dumping Investigation Process in India

An anti-dumping investigation determines whether imports are entering India at an export price below their normal value and causing injury to domestic producers of the like article. Dumping alone is insufficient: the authorities must establish material injury and a causal link before anti-dumping duty may be imposed.

Statutory and institutional framework

The process is governed by Section 9A of the Customs Tariff Act, 1975 and the Customs Tariff Rules, 1995. The Directorate General of Trade Remedies, or DGTR, under the Department of Commerce conducts the investigation as the designated authority; the Central Government, acting through the Ministry of Finance, decides whether to impose the duty.

From application to determination

• A properly documented application is ordinarily submitted by or on behalf of the domestic industry, containing evidence of dumping, injury and causal connection.
• DGTR examines the adequacy and accuracy of evidence before initiation, issues a public notice and informs known exporters, importers, governments of exporting countries and other interested parties.
• Interested parties may submit questionnaire responses and evidence, seek hearings and inspect the non-confidential record; confidential information must ordinarily be accompanied by a meaningful non-confidential summary.
• DGTR compares normal value with export price to calculate the dumping margin and examines factors such as import volume, price effects and impact on domestic producers.
• DGTR may issue preliminary findings recommending provisional duty. Its final findings ordinarily follow within one year of initiation, extendable by the Central Government by six months.

Duty, duration and review

On an affirmative final finding, DGTR recommends the amount of duty, generally applying the lesser duty rule, which limits duty to the lower of the dumping margin and injury margin. The Ministry of Finance may impose duty by customs notification, but it cannot exceed the dumping margin.

• A definitive anti-dumping duty normally remains effective for up to five years, unless revoked earlier.
• A sunset review may continue the measure where expiry is likely to cause continuation or recurrence of dumping and injury.
• Determinations concerning dumping and duty are appealable to the Customs, Excise and Service Tax Appellate Tribunal under Section 9C.

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