Anti explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Anti-dumping duty is levied under Section 9A of the Customs Tariff Act 1975 on goods exported to India below their normal value, where such dumping injures the domestic industry. The DGTR investigates dumping and injury, and the Ministry of Finance imposes the duty, usually for five years.
Overview
Dumping occurs when a foreign producer exports goods to India at a price lower than the price it charges in its home market (the normal value). If this cheap import harms Indian producers of the like article, India can impose an anti-dumping duty to level the playing field. It is a WTO-consistent trade remedy, not a protectionist tariff.
Legal Basis
The levy flows from Section 9A of the Customs Tariff Act 1975, read with the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995. Investigations are conducted by the Directorate General of Trade Remedies (DGTR).
The Three Ingredients
- Dumping — the export price to India is below the normal value in the exporting country.
- Injury — material injury, threat of injury, or material retardation to the domestic industry.
- Causal link — the injury is caused by the dumped imports, not by other factors.
Dumping Margin — Example
Suppose a product sells in the exporting country (normal value) at ₹1,000 per unit but is exported to India at ₹800 per unit. The dumping margin is ₹200, i.e., 25% of the export price. If the DGTR also finds injury and causal link, an anti-dumping duty up to the dumping margin (subject to the lesser-duty rule, which caps the duty at the margin needed to remove injury) can be recommended.
Investigation Process
- Application by the domestic industry (or suo motu by DGTR) with evidence of dumping, injury and causal link.
- Initiation — DGTR issues a public notice initiating the investigation.
- Data gathering — questionnaires to exporters, importers and domestic producers; verification.
- Preliminary finding — may lead to provisional duty.
- Final finding by DGTR recommending the duty; the Ministry of Finance imposes it by notification.
Duration and Review
| Stage | Position |
|---|---|
| Provisional duty | After preliminary finding, limited period |
| Definitive duty | Normally 5 years from imposition |
| Sunset review | Before expiry; can extend the duty |
| Mid-term / new-shipper review | To revise rate or cover new exporters |
Common Pitfalls for Importers
- Overlooking a live anti-dumping notification on the specific product-country combination, leading to short payment.
- Ignoring exporter-specific rates — the duty often varies by producer/exporter named in the notification.
- Assuming it lapses automatically — a sunset review can extend it beyond five years.