Anti-dumping duty on Indonesian viscose fibre

The Directorate General of Trade Remedies (DGTR) has recommended that anti-dumping duties (ADD) be levied on viscose staple fibre imported from Indonesia.


  • Dumping is the process by which a company exports a product at a significantly lower price than it normally charges in its home (or domestic) market.
  • This is an unfair trade practise that has the potential to distort international trade.
  • Anti-dumping is a trade distorting measure used to correct the situation caused by dumping of goods.

Anti-Dumping Duty

  • An anti-dumping duty is a protectionist tariff imposed by a domestic government on foreign imports that it believes are underpriced.
  • Many countries impose duties on products they believe are being dumped in their domestic market in order to protect their respective economies.
  • In reality, anti-dumping is a tool for ensuring fair trade, not a form of protection for domestic industry.
  • Such ‘dumped’ goods have the potential to undercut local businesses and the economy.
  • Anti-dumping duties protect domestic industries from the harm caused by dumping.

Mechanism in India

  • The anti-dumping duty, whether provisional or final, is recommended by the Department of Commerce.
  • Within three months, the Department of Revenue in the Finance Ministry acts on the recommendation and imposes such duties.

WTO and Anti-Dumping Duties

  • The World Trade Organization (WTO) enforces a set of international trade rules, including the international regulation of anti-dumping measures.
  • It does NOT intervene in the activities of dumping companies.
  • Instead, it focuses on how governments can—or cannot—respond to dumping.
  • In general, the World Trade Organization agreement allows governments to take action against dumping if it causes or threatens material harm to an established domestic industry.

Problems with such duties

  • Anti-dumping duties may cause market distortions.
  • Governments cannot normally determine what constitutes a fair market price for any good or service in a free market.
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