What is Anti-Dumping Duty?

Anti-Dumping Duty (ADD) is a tariff imposed by governments to counter dumping. Dumping occurs when foreign exporters sell goods in India at prices below their normal value, often less than the domestic market price in their country or the cost of production plus a 10% profit margin, as per World Trade Organisation (WTO) guidelines. ADD safeguards local industries against unfair pricing practices that may destabilise markets, lead to job losses and injure local producers. The obligation helps to create a level playing field by preventing predatory pricing, under which overseas firms sell at a loss to drive away competition. Dumping in foreign trade is an unjust practice, and ADD is a key measure to ensure fair trade and safeguard local economies.