When any foreign goods or articles are exported into India at a price lower than what they charge in their domestic markets with an intention to capture Indian markets to the detriment of Indian industry, it is known as dumping. As a step towards prevention of dumping, the central Government may impose an anti dumping duty not exceeding the margin of dumping in relation to such article. Dumping duty is also imposed when goods are imported indirectly or after changing the condition of goods. In India, the laws have been amended with effect from 1.1.1995 to comply with the anti-dumping provisions in WTO Agreement. Under the provisions of the Customs Tariff Act, 1975 and the rules made there under, Anti-dumping duty investigations are carried out. The Legal framework of the anti-dumping laws in India is based on Article VI of GATT 1994, the Customs Tariff Act, 1975, Anti-Dumping Rules under Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, Investigations and Recommendations by Designated Authority, Ministry of Commerce and Imposition and Collection by Ministry of Finance.
