Dumping

Alexandr Sysoiev
ED-41

Contents

What is dumping?
Like Products
Normal Value
Injury
Impact
Remedial Action
Case Studies
Conclusions

What is Dumping?
A product is said to be
dumped when its export price
is less than its normal value
of a like product in the
domestic
market
in
the
exporting country.

Like products
A product is identical alike in all respects
OR
A product that has
closely
resembling
characteristics

Normal Value
The Normal Value is
The price in the
domestic market, or

exporters

Production costs plus

expenses and normal
margins.

other
profit

Injury

Dumping must cause

material injury in the
importing market

The Impact
The Impact on the industries of importing country

Loss of Sales
Reduced Profits
Loss of market share
Reduced returns on investments
Decline in Productivity
Decline in output

Adverse Effect On

Cash flow
Employment
Wages
Growth
New Investment
Ability to raise capital

Remedial Action

Restrict Dumping
or
Using of import duties

Measures for Remedial Action

Imposition of anti dumping
duties
Countervailing duties
Safeguard measures

Case Studies
Ukraine & Russia
Product : Fibreboard
Dumping Margin : 31%
Injury
- Reduced Profits
- Reduced Return on Investment
- Loss of local Job opportunities

Remedial Action
Dumping duty imposed at 31% on
top of export price
Recommendation of Ukraine
Government to return all dumped
products back to Russia
Duration of antidumping measures
is 5 year (till 2014)

Conclusions
Only
an Industry or Country and not a
Company can call for an anti-dumping
investigation
It is time consuming work to gather information
and prove dumping
Costly as in most cases the matter will be
referred to Industrial courts
It is difficult to recover losses during the
process of proving Dumping
Pre or Post introduction of dumping duties