What is Dumping?

Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market.

An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.

Typically, anti-dumping action means charging extra import duty on the particular product from the particular exporting country in order to bring its price closer to the “normal value.”

The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organisation (WTO).

Disputes in the anti-dumping area are subject to binding dispute settlement before the Dispute Settlement Body of the WTO.