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Anti Dumping Duty

INJURY TO THE DOMESTIC INDUSTRY
The Indian industry must be able to show that dumped imports are causing or are threatening to cause material injury to the Indian ‘domestic industry’. Material retardation to the establishment of an industry is also regarded as injury.

The material injury or threat thereof cannot be based on mere allegation, statement or conjecture. Sufficient evidence must be provided to support the contention of material injury. Injury analysis can broadly be divided in two major areas:

INJURY DETERMINATION

VOLUME EFFECT

SIGNIFICANT  INCREASE, ABSOLUTE, RELATIVE

PRICE EFFECT
DEPRESSION  UNDER  CUTTING SUPRESSION

The Volume Effect
The Authority examines the volume of the dumped imports, including the extent to which there has been or is likely to be a significant increase in the volume of dumped imports, either in absolute terms or in relation to production or consumption in India, and its affect on the domestic industry.

The Price Effect
The effect of the dumped imports on prices in the Indian market for like articles, including the existence of price undercutting, or the extent to which the dumped imports are causing price depression or preventing price increases for the goods which otherwise would have occurred. The consequent economic and financial impact of the dumped imports on the concerned Indian industry can be demonstrated, inter alia, by :
decline in output
loss of sales
loss of market share
reduced profits
decline in productivity
decline in capacity utilization
reduced return on investments
price effects
adverse effects on cash flow, inventories, employment, wages, growth, investments, ability to raise capital, etc.
Injury analysis is a detailed and intricate examination of all the relevant factors. It is not necessary that all the factors considered relevant should individually show injury to the domestic industry.
CASUAL LINK
A ‘causal link’ must exist between the material injury being suffered by the Indian industry and the dumped
imports. In addition, other injury causes have to be investigated so that they are not attributed to dumping.
Some of these are volume and prices of imports not sold at dumped prices, contraction in demand or changes in the pattern of consumption, export performance, productivity of the domestic industry etc.
INJURY-EVALUATION OF ECONOMIC INDICATORS

ACTUAL/POTENTIAL DECLINE IN
Sales
Output
Profits
Market Share
Productivity
Return on Investment
Capacity Utilization etc.
Employment
Inventors/Stocks
Ability to raise capital or investment etc

CAUSAL RELATIONSHIP
Causal relationship to be demonstrated
Other factors to be considered
Volume and price of other imports
Demand contraction
Productivity
Technology

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