Essay On Determination Of Dumping
In international trade parlance, dumping means export of goods by one country to the market of another country at ‘export price’ which is lower than the ‘normal value’ of the goods in the exporting country itself. Dumping could harm the trade and industry of the importing country. Dumping takes place either when there is over production of goods at the exporting country and demand in the domestic market is not adequate for the consumption of such goods or when a foreign manufacturer of goods wants to make a dent in an overseas market or an external country and sell the goods in an absurdly or very low price so that goods of home manufacturer cannot compete in the price otherwise with such goods. There are two parameters used for determination of dumping namely, the normal value and the export price.
1. Normal Value:
The Normal Value is the comparable price, at which the goods under complaint sold, in the ordinary course of trade, in the domestic market of exporting country. If the normal value cannot be determined by means of the domestic sales, the following two alternative methods to be employed to determined the normal value.
Comparable representative export price to an appropriate third country.
Constructed normal value, i.e. the costs of production in the
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The price at which the like articles are sold in the domestic market of the exporter is referred to as the “Normal Value.” As mentioned earlier in introduction that Dumping itself is not sufficient for imposition of anti – dumping duties, besides this the domestic producer has to prove that he has been adversely effected, i.e. Materially Injured. The Agreement on dumping recognises two things one is ‘threat of material injury’ or ‘threat to the establishment of an
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