DUMPING:

Dumping is a price discrimination condition, in which, if selling to the importing country,

the price of a product is inferior to that of the product being sold onto the exporting
country's economy.

Dumping represents price discrimination between two industries, where the monopoly
operator sells a share of his product on the domestic market at a low price, the
remainder at a high price.

Objectives of Dumping:
1) Find an international market place

2) For the sale of surplus goods

3)Developmnet and growth of industry

4)New International trade relations

Types of Dumping:
Persistent Dumping –:

International price discrimination dumping.

Predatory Dumping –
It is ' time ' selling a commodity at lower expenses or at lower prices abroad to move foreign
manufacturers out, during which prices are increased abroad to profit from the monopoly
power that has been recently gained.

Sporadic Dumping –
It is the ' occasional ' sale of the products in order to dump an unexpected and temporary
surplus of a product at minimal or lower costs abroad than internally, without any having to
lower domestic prices.
Effects of Dumping:

Effects on Importing Country :

If a manufacturer dumps his products foreign countries for a short time, the purchasing
country industry will be impacted for a short time. Because of the minimal cost of the
dumped product, the country's industry must lose its product for some period as it sells
fewer.

Dumping will be damaging if it remains for a longer period for the importing nation. It
completely changes production in the importing country and its domestic industry can
not compete. And it becomes hard to change production again when cheap goods stop
or dumping doesn't arise.

In the case of a consumer product that is being dumped, demand for the cheaper goods
changes in the importing country. This demand will invert when dumping stops, and
thus change the tastes of those who are damaging to the economy.

If the monopolist dumps the product from the foreign market to remove its
competitors, the importing countries can start benefiting from cheap goods. However,
the purchasing country loses the very same product after competition ends, so it sold it
at a very high monopoly price, because it has to charge a high cost.

Effects on Exporting Country :

If the monopolist dumps the commodity from the foreign market, importing countries
can benefit from cheap commodities. However, after competition ends, the buying
country loses the same product and sells it at a very high monopoly price because it will
have to pay a high price.

When the monopolist contains further commodities, the exporting country often gains
from dumping. The demand for variables, such as raw materials, etc., needed for
producing that good or service thus gains and the employment entails in the country are
expanded.
By dumping its product in large quantities in the foreign market the exporting nation
gets foreign exchange. This improves its current account deficit.

Anti - Dumping :
 The condition resulting from dumping of goods and its stimulative impact on
trade is rectified by the measure.
 Fair trade rebuild.
 The WTO allows the use of anti-dumping measures as fair competition
instruments.
 gives the local industry with relief from dumping injuries.

Imposition of Anti – Dumping Duty :

• No duties can be enforced if there is dumping but no injury.

• For five years the duties shall remain in place.

• Sunset review re-determination. "

• Annual regulatory reviews, at domestic or exporter demands.

Background (ANTIDUMPING DUTY):

 Canada brought the anti-dumping legislation in 1903; or, in Kennedy Round
(1967)–the' Anti-dumping Code' ceased to exist;
  the US took steps of introducing anti-dumping duties onto the Havan Charter as
such and to tariff binding;
 This contract have been further developed under the Tokyo Round Code (1974)
and Uruguay Round Code (1986),
 Uruguay Round Code (1986), the Contract on Anti-dumping, which has been
actually called "Agreement on the Implementation of Article VI of GATT."
 Anti-dumping Arrangement Framework–18 annexes 18 articles

ANTIDUMPING DUTIES (PAKISTAN

PERSPECTIVE REAL CASES AND
ARTICLES):

NTC Imposes Anti-Dumping Duty on Lead

Pencils:
Dumped imported goods into Pakistan from China from either the National Tariff
Commission (NTC) have imposed ' Accurate Anti-dumping Duties. ' The NTC's order for
collection of the above duty was collected by the Federal Board of Revenue (FBR) at the
import phase.

The National Tariff Commission (the “Commission”) with regards to the Anti Dumping
Duties Act, 2015 (the “Act”) and the Anti-Dumping Duties Rules, 2001 (the “Rules”) is
responsible to conduct anti-dumping investigations for imposition of anti-dumping
duties to offset injurious impact of dumped imports on domestic industry and to ensure
fair competition, and to the WTO’s Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade 1994 (the “Antidumping Agreement”).

In its analyzed product official gazette (exceptional) dated June 06, 2018, the
Commission has imposed transitional anti-dumping duties varying from 4.55 to 51.39
percent for four months.
SOURCE: https://propakistani.pk/2018/11/23/ntc-imposes-anti-dumping-duty-on-lead-pencils/

INDIA :Dumping duty imposed on hydrogen

peroxide imports from 6 countries
Import duties applicable to hydrogen Peroxide imports, except for food and
electronic grade concentrations of 90% and more, from six countries, are charged
in the Finance Minister. Import duties from Bangladesh, Taiwan, South Korea,
Indonesia, Pakistan and Thailand are valid for a period of five years.The six
countries are Bangladesh, Taiwan, South Korea, Indonesia, Pakistan and Thailand.

(SOURCE: https://www.thehindubusinessline.com/economy/dumping-duty-imposed-on-hydrogen-
peroxide-imports-from-6-countries/article9727629.ece)

Steel pipes: Canada slaps anti-dumping duty

on Pakistan’s product

KARACHI: In four countries, including Pakistan, the Philippines, Turquie and

Vietnam, Canada imposed anti-dumping duty on imports from the Circular
Sweated Steal Pipe (CWSP) range from 3% to 95%.SOURCE:
https://tribune.com.pk/story/1843381/2-steel-pipes-canada-slaps-anti-dumping-duty-pakistans-

product/
 Pakistan imposes antidumping duties on
coated steel from China, South Africa
As early as the 13th June, Chinese exporters / producers were charged tariffs rating
between 5.36% and 10.88% and their South African counterparts were charged 14.24%.

Cement manufacturers ask government to

place anti-dumping duty on Iranian cement:
The Pakistani cement is having a hard time finding access to a the Afghanistan industry
since in 8 MFY 19 it decreased over 54 percent of the total trade portion of the Afghan
trade in 2007 to over 24 percent. This is because Afghanistan has paved the way to
many other countries, which include Iran, that has surplus cement production capability.

In addition to putting an anti-dumping duty on Iran concrete, which while not just
influenced domestic consumption, but still has grabbed Pakistan's Afghan sector mainly
due to its lower costs, cement suppliers called upon the Government to implement
action to reduce production costs.