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Notes 1 - Difference Between Anti Dumping and Safeguard Duty

Anti-dumping and safeguards are trade remedies but differ in key ways: - Anti-dumping addresses unfair pricing by foreign producers dumping goods at lower prices in the importing country's market. It is company-specific while safeguards are general remedies against a surge in imports. - Safeguards provide protection against cheap imports that have suddenly increased for unforeseen reasons through uniform duties on all imports. Anti-dumping duties can vary by company. - Injury determinations also differ, with anti-dumping requiring material injury and safeguards requiring serious injury or market disruption. Safeguards allow interim duties on initiation while anti-dumping requires a 60-day review period.

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675 views1 page

Notes 1 - Difference Between Anti Dumping and Safeguard Duty

Anti-dumping and safeguards are trade remedies but differ in key ways: - Anti-dumping addresses unfair pricing by foreign producers dumping goods at lower prices in the importing country's market. It is company-specific while safeguards are general remedies against a surge in imports. - Safeguards provide protection against cheap imports that have suddenly increased for unforeseen reasons through uniform duties on all imports. Anti-dumping duties can vary by company. - Injury determinations also differ, with anti-dumping requiring material injury and safeguards requiring serious injury or market disruption. Safeguards allow interim duties on initiation while anti-dumping requires a 60-day review period.

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ghag22909947
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Differences between anti dumping & safeguards

What is anti dumping


Anti dumping is against unfair pricing by
Foreign Producers charging higher price
in home market and exporting at lower
price
Anti dumping is company and country
specific
Duty varies from company to company
Form of injury is material injury.
Threat of injury is recognized. However,
threat of dumping is not recognized.

No interim duty can be imposed before


expiry of 60 days. However, duty can be
imposed on retrospective basis on past 90
days imports
Same requirements of injury for interim and
final
More elaborate data requirement
India has wide and rich experience on anti
dumping
Anti dumping is not a protection
Three forms of duty possible
Ad valorum (% on CIF import price)
Fixed quantum (INR/US$ per unit of
product)
Benchmark pricing (duty is the
difference between benchmark and
landed price of imports)
Recommendation is made by Designated
Authority in Ministry of Commerce and is
implemented by Ministry of Finance
Final Order can be challenged before
CESTAT. Writ can be filed before High
Court or Supreme Court.
Anti dumping duty can be imposed in
addition to safeguard duty and vice versa.
But simultaneous investigations are not
permitted under Indian law [because of an
unnecessary legal provision]

What is safeguards
Safeguards is against cheap imports, which
has shown a sudden surge in imports due to
some unforeseen circumstances.
General safeguard is against all countries
Transitional safeguards is against China
Uniform duty on all imports
Form of injury is
Serious injury in general safeguards
Market disruption in case of China
specific safeguards
Threat of injury is recognized. However,
threat of increase in imports is not
recognized.
Interim duty can be imposed on initiation of
enquiry
Existence of critical circumstances is an
additional requirement for interim duties
Less elaborate as compared to anti dumping
Not many cases done globally
Safeguard duty means protection
Only ad-valorem form of duty
Quantitative restrictions possible (however,
India has yet framed Rules for quantitative
restrictions)

Recommendation is made by Director


General (Safeguards) in Ministry of Finance,
then accepted by Committee on Safeguards
and thereafter implemented by Ministry of
Finance.
No appeal provision. Only a writ can be filed
before High Court or Supreme Court.

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