Governments utilize anti-dumping duties as a vital tool to defend their domestic industry from unfair trade practices and to keep the playing field level in international trade. Businesses, decision-makers, and consumers can better grasp the function of anti-dumping duty in creating fair competition, protecting domestic industries, and building harmonious trade relations between nations by knowing the concept of anti-dumping duty and how it is applied.
Governments put anti-dumping duties on imported goods that are sold for less than their fair market value in the exporting nation. Dumping happens when a foreign manufacturer exports items for less than their local market price or less than their cost of production with the goal of gaining market share or squelching competition in the importing nation.
Anti-dumping duties are primarily used to safeguard domestic industry from the negative effects of predatory pricing strategies and to keep the playing field level in international trade.
Anti-dumping duties are necessary for several reasons:
The process of imposing anti-dumping duties typically involves the following steps: