Anti-dumping duties are applied when an exporter resorts to discriminatory pricing, i.e., sells cheaper in India as compared to his own market.
This is the most widely used measure today world over. Dumping is charging different prices (at ex-factory level) in different markets. Dumping margin is the difference between prices in the different market – exports to India on one hand and domestic prices on the other.
Countervailing duties are applied when an exporter sells cheaper because of financial support by its Government.
India has not done any case of countervailing so far. The Government would have to settle the whole procedural mechanism while taking up the first case, which implies significantly higher time required by the Designated Authority for taking up the first countervailing case as compared to a dumping case.
Safeguard measures are applied when the imports are at fair price, i.e., neither the exporter is charging different prices in different market nor there are any associated subsidies. Safeguard duties are supposed to be emergency measures to be used sparingly. Government of the affected countries must be granted equivalent trade compensation. Moreover, the protection being against fairly priced imports, the industry must commit itself to take steps to become competitive by the time the safeguard duties are lifted.
India has by now done more than 400 cases of anti-dumping and more than 20 cases of safeguard. India has by now done a number of cases against Japan, European Union, USA and South East Asian Countries.
The procedure involved for all the three mechanism is quite similar. There is hardly any difference at least upto the stage of interim duties in so far as the industry is concerned.
In case an exporter is selling at prices below cost of production, it prima facie indicates dumping by the exporter. In case the Indian industry is selling below cost of production, it prima facie indicates injury to the industry.
NOTE: This is not a legal version of various provisions. This is merely an informative note.