INTERVIEW QUESTIONS TAX ANTI DUMPING DUTY TAX DETAILS

Question: What is the relief/remedy to the Domestic Industry under the Anti Dumping mechanism. Is it always in the form of Anti-dumping duty?

Answer: The relief to the domestic industry against dumping of goods from a particular country is in the form of anti dumping duty imposed against that country/ies, which could go upto the dumping margin. Such duties are exporter specific and country specific.

However, the remedy against dumping is not always in the form of anti dumping duty. The Authority may terminate or suspend investigation after the preliminary findings if the exporter concerned furnished an undertaking to revise his price to remove the dumping or the injurious effect of dumping as the case may be. No anti dumping duty is recommended on such exporters from whom price undertaking has been accepted.

What are other remedial measures against unfair trade practices in addition to Anti Dumping? How do they come into operation?

Apart from dumping, some of the countries also resort to subsidisation of their exports to other countries. Export subsidies, under the WTO agreement, are treated as unfair trade practice and such subsidies are actionable by way of levy of anti-subsidy countervailing duty.

There is one more trade remedial measure called "safeguards" which are applied as an emergency measure in response to surge in imports of a particular item.

• Anti subsidy countervailing measure is in the form of countervailing duty which is to be imposed only after the determination that:
a. the subsidy is a specific subsidy
b. the subsidy relates to export performance;
c. the subsidy relates to the use of domestic goods over imported goods in the export article; or
d. the subsidy has been conferred on a limited number of persons engaged in manufacturing, producing or exporting the article.

What is subsidy for this purpose?
A subsidy is said to exist;

a. if there is a financial contribution by the Government or any public body within the territory of the exporting country, i.e. where-
• there is a direct transfer of funds (including grants, loans and equity) by the Government;
• government revenue i.e. otherwise due is foregone and not collected (including fiscal incentives, I.T. exemption
• a government provides goods or services other than general infrastructure;

b. a government grants or maintains any form of income or price support which operates directly or indirectly to increase export of any article from its territory.

What is not a subsidy?

• However the subsidy which is for research activities conducted by the persons engaged in manufacture or export or the subsidy which is for assistance to disadvantaged regions with the territory of the exporting country is not actionable. Thus, no countervailing duty is to be levied on such subsidies.
• In anti subsidy countervailing investigation, the Government of the exporting country/ies is a party to the investigation in addition to the exporters from these countries. The countervailing duty imposed on the subsidized exports from a country shall not exceed the amount of such subsidy/ies.
• In India the Designated Authority for anti dumping is also the Authority for administering anti subsidy countervailing measures.

What it Safeguards?

• Safeguards, on the other hand, are applied when:
a. there is a surge in imports of a particular product irrespective of a particular country/ies and,
b. it causes serious injury to the domestic industry.

• Safeguard measures are applied to all imports of the product in question irrespective of the countries in which it originates or from which it is exported. This aspect distinguishes Safeguards from anti dumping and anti subsidy measures which are always country specific and exporter specific.

• Safeguards are applied in the form of either safeguard duty or in the form of safeguard QRs (import licenses). These measures are administered in India by an Authority called Director General (Safeguards) who functions in the jurisdiction of the Department of Revenue, Ministry of Finance.

The relief to the domestic industry against dumping of goods from a particular country is in the form of anti dumping duty imposed against that country/ies, which could go upto the dumping margin. Such duties are exporter specific and country specific.

However, the remedy against dumping is not always in the form of anti dumping duty. The Authority may terminate or suspend investigation after the preliminary findings if the exporter concerned furnished an undertaking to revise his price to remove the dumping or the injurious effect of dumping as the case may be. No anti dumping duty is recommended on such exporters from whom price undertaking has been accepted.

What are other remedial measures against unfair trade practices in addition to Anti Dumping? How do they come into operation?

Apart from dumping, some of the countries also resort to subsidisation of their exports to other countries. Export subsidies, under the WTO agreement, are treated as unfair trade practice and such subsidies are actionable by way of levy of anti-subsidy countervailing duty.

There is one more trade remedial measure called "safeguards" which are applied as an emergency measure in response to surge in imports of a particular item.

• Anti subsidy countervailing measure is in the form of countervailing duty which is to be imposed only after the determination that:
a. the subsidy is a specific subsidy
b. the subsidy relates to export performance;
c. the subsidy relates to the use of domestic goods over imported goods in the export article; or
d. the subsidy has been conferred on a limited number of persons engaged in manufacturing, producing or exporting the article.

What is subsidy for this purpose?
A subsidy is said to exist;

a. if there is a financial contribution by the Government or any public body within the territory of the exporting country, i.e. where-
• there is a direct transfer of funds (including grants, loans and equity) by the Government;
• government revenue i.e. otherwise due is foregone and not collected (including fiscal incentives, I.T. exemption
• a government provides goods or services other than general infrastructure;

b. a government grants or maintains any form of income or price support which operates directly or indirectly to increase export of any article from its territory.

What is not a subsidy?

• However the subsidy which is for research activities conducted by the persons engaged in manufacture or export or the subsidy which is for assistance to disadvantaged regions with the territory of the exporting country is not actionable. Thus, no countervailing duty is to be levied on such subsidies.
• In anti subsidy countervailing investigation, the Government of the exporting country/ies is a party to the investigation in addition to the exporters from these countries. The countervailing duty imposed on the subsidized exports from a country shall not exceed the amount of such subsidy/ies.
• In India the Designated Authority for anti dumping is also the Authority for administering anti subsidy countervailing measures.

What it Safeguards?

• Safeguards, on the other hand, are applied when:
a. there is a surge in imports of a particular product irrespective of a particular country/ies and,
b. it causes serious injury to the domestic industry.

• Safeguard measures are applied to all imports of the product in question irrespective of the countries in which it originates or from which it is exported. This aspect distinguishes Safeguards from anti dumping and anti subsidy measures which are always country specific and exporter specific.

• Safeguards are applied in the form of either safeguard duty or in the form of safeguard QRs (import licenses). These measures are administered in India by an Authority called Director General (Safeguards) who functions in the jurisdiction of the Department of Revenue, Ministry of Finance. Source: CoolInterview.com

If you have the better answer, then send it to us. We will display your answer after the approval.

Rules to Post Answers in CoolInterview.com:-

• There should not be any Spelling Mistakes.
• There should not be any Gramatical Errors.
• Answers must not contain any bad words.
• Answers should not be the repeat of same answer, already approved.
• Answer should be complete in itself.

Name :*
Email Id :*
Answer :*
Verification Code	Not readable? Load New Code
Enter the above shown code: *
	Inform me about updated answers to this question