Page 167 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes Tactical dumping occurs when a firm sells the same product at different prices in different
markets.
Predatory dumping aims at eliminating the competition to gain exclusive control of the market.
It is an extreme form of discriminatory pricing where the firm aims at monopolizing a market.
This method of dumping is most likely to cause destructive injury to the country where the
product is being dumped.

Notes The General Agreement on Tariffs and Trade states the principles and rules to be
followed by the member countries in terms of imposing anti-dumping duties,
countervailing duties and safeguard. It has prescribed detailed guidelines under the specific
agreements, which have been incorporated in the national legislation of the countries
which are members of WTO. Indian laws have also been amended with effect from 1.1.95
to match the provisions of the GATT agreement.
The phenomenon of dumping is actually condemnable as producers do sell their goods at
different prices to different market. It is also not unusual for prices to vary from time to time
depending on supply and demand conditions prevailing in the market. Also, discrimination in
the form of dumping is a common international commercial practice. Moreover, export prices
are lower than the domestic prices. Therefore, from the point of view of antidumping practices,
there is nothing illegal about the practice of dumping. However, when dumping leads to material
injury to the domestic industry of the country where it is being done, the designated Authority
initiates investigations and imposition of anti-dumping duties.

Caselet Sports Shoes (China PR)

T he product in the investigation was Sports Shoes originating in or exported from
China P.R. The product is a non-leather sports foot wear used for sports applications.

Anti-dumping investigation was initiated suo-moto by the DGAD on 20.11.2000 into the
alleged dumping of Sports Shoes originating in or exported from China P.R. On 25.01.2001,
preliminary findings were notified and anti-dumping duty was recommended as follows:
(a) Unbranded & low end branded excluding Nike/Reebok/Adidas 6.277 US$/Pair
(b) Branded category like Nike/Reebok/Adidas 18.44 US$/Pair

On 12.09.2001, final findings were notified and anti-dumping duty as a difference between
the reference prices in the range of US $ 5.044 to US $ 12.9 and landed value of imports per
pair was recommended. Definitive anti-dumping duty has been imposed by the Department
of Revenue vide notification dated 25.9.2001.
Source: http://commerce.nic.in/traderemedies/productprofile/cases_5.pdf

Did u know? Sections 9A, 9B and 9C of the Customs Tariff Act, 1975 as amended in 1995 and
the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on
Dumped Articles and for Determination of Injury) Rules, 1995 form the legal basis for
anti-dumping investigations and for the levy of anti-dumping duties. These laws are
based on the Agreement on Anti-Dumping which is in pursuance of Article VI of GATT
1994.

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