India is the largest market in the world for agricultural goods and is the second largest for manufactured goods after China. However, there are several trade-related challenges and risks that face businesses selling goods in India. For example, India has a rigid policy regime and is prone to non-tariff barriers such as sanitary and phytosanitary measures.
To protect against risks related to these Trade Remedies in India, it is best to consult an Indian trade lawyer most of whom are qualified in customs and International Trade Law. They can also help protect against Intellectual Property violations and commercial frauds and review contract terms to avoid legal challenges. An experienced lawyer can also help build trust between business partners to mitigate the risk of business disputes.
Trade Remedies in India are to be used as a last resort against unfair trade practices. It is a kind of temporary relief granted when there has been a surge in imports from foreign countries causing serious injury to domestic producers.
The flip side of free trade is that imports can be dumped on the Indian market, hurting domestic producers. This is why India has several Trade Remedies in India in place to deal with such dumping. These include anti-dumping, countervailing duties, and safeguards.
A dumping duty is imposed when an investigation establishes that there has been excess capacity created in another country – and that excess capacity is dumped in India at unfairly low prices. The government imposes a Dumping Duty, Countervailing Duty (CVD), or Safeguard Duty (SG) to protect domestic manufacturers from this unfair competition. The rate of duty is calculated according to a formula and the difference between the normal value (i.e., the price of the imported product at the actual place of export) and the export price (imported product price after adjusting for costs, insurance, freight, and other charges).
Trade Remedies in India have been in place for a long to prevent the dumping of imports into the domestic market. The main objective of the trade remedies is to ensure a level playing field for the domestic industry and fair trade practices by foreign entities.
The laws on trade remedies are specified under the Customs Act, 1962 (as amended) and the Imports and Exports (Control) Act, 1947 (as amended). The basic objectives of the administration of trade remedies are:
Safeguarding the economy of India
Safeguarding interests of the domestic industry from injurious dumping and subsidization
Safeguarding the interests of consumers and ensuring the availability of goods at reasonable prices.
Related Article :- Why Hire an Anti-dumping Consultant?
The adjudication of anti-dumping cases is done by the Directorate General of Anti Dumping & Allied Duties (DGAD), under the Ministry of Commerce and Industry, Government of India. Investigations are conducted by the DGAD, where it has reasonable grounds to believe that dumping or subsidization exists. Thereafter, the investigation findings are examined in detail by the Authority. If dumping or subsidization is confirmed, an order imposing the anti-dumping duty is issued against the exporters/producers/manufacturers/importers/sellers/service providers of such goods in India.
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Trade Remedies in India are special measures that help protect a country's economy from unfair pricing or trade practices by foreign companies.
According to the WTO ", if a product is imported into a country at an unfairly low price because of subsidies or other reasons, trade remedies can be used to raise the import price so that domestic products can compete on equal terms" (Wikipedia)
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