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Anti-dumping duty is a trade measure implemented by a country to protect its domestic industries from the negative effects of unfair competition resulting from the dumping of goods from foreign markets. Dumping occurs when a company exports goods to another country at a price lower than their normal value or below their production cost, which can harm domestic industries and create an unfair advantage for the exporting company.

To address this issue, the affected country may impose anti-dumping duties on the imported goods. Anti-dumping duties are additional charges or tariffs levied on the imported goods, making them less competitive in the domestic market and helping to restore fair competition.

The imposition of anti-dumping duties typically follows an investigation conducted by the country’s trade authorities, such as the national customs agency or a designated anti-dumping commission. The investigation examines whether dumping has occurred and whether it has caused or threatens to cause material injury to the domestic industry.

The investigation considers various factors, including the price of the imported goods, the impact on domestic producers, the volume of imports, and the competitive conditions in the domestic market. If the investigation finds evidence of dumping and harm to the domestic industry, the country may impose anti-dumping duties on the specific goods from the exporting country.

The amount of anti-dumping duty imposed is often based on the margin of dumping, which is the difference between the export price and the normal value of the goods. The duty is intended to counterbalance the unfair pricing and provide protection to the domestic industry.

It’s important to note that anti-dumping duties are temporary measures and usually have a specified duration. They aim to provide short-term relief to domestic industries while allowing them to adjust and become more competitive. Additionally, the imposition of anti-dumping duties must comply with international trade laws and regulations, such as those established by the World Trade Organization (WTO), to ensure fairness and prevent trade disputes.

Overall, anti-dumping duties serve as a trade remedy to address unfair competition caused by the dumping of goods in the domestic market. They provide temporary protection to domestic industries and help maintain fair trade practices.