CUSTOM DUTY, DUMPING, ANTI DUMPING DUTY, Countervailing Duties, Anti Dumping Duty vs Countervailing duties, Safeguard duty

 

                              

CUSTOM DUTY---

• Custom Duty : Indirect tax 
• levied on imports and exports by the government. 
• Custom Duty is to protect the domestic industries from competition from abroad and to raise state revenues as well. 
• Customs Duties can be either specific tax or on ad valorem basis depending upon the product.

 DUMPING:

• Dumping takes place when the goods are exported by a country (exporting country) to another country (importing country) at a price lower than the price it normally charges in its own (exporting country) home market. 
• Dumping is an unfair trade practice which can have a distortive effect on international trade.
• Anti Dumping Duty (ADD) is an antidote imposed by Importing country to deal with the issue of  Dumping 

ANTI DUMPING DUTY :

• Imposition of Anti Dumping Duty (ADD) is a measure to deal with the situation arising out of the dumping of goods and its trade distortive effect thereafter.
• Anti Dumping Duty (ADD) is a protectionist tariff imposed by government imposes on foreign imports to deal with the situation of dumping.
• Anti Dumping Duty (ADD) as an instrument is allowed under the umbrella of World Trade Organisation.

Countervailing Duties:

• Countervailing duties (CVDs) are trade import tariffs imposed to nullify the adverse effects of subsidies, hence called as anti-subsidy duties
• Countervailing duties (CVDs) are allowed under World Trade Organisation (WTO) regime.
• Countervailing duties (CVDs) are levied when an importing country finds out that exporting country is subsidizing its exports thus harming its domestic suppliers.

Anti Dumping Duty (ADD) vs Countervailing duties (CVDs) :

*Anti Dumping Duty is a customs duty on imports providing a protection against the dumping of goods at prices substantially lower than the normal value whereas Countervailing duty is a customs duty on goods that have received government subsidies in the originating or exporting country.

Safeguard duty:

• Safeguard measures are the tariffs imposed by the importing countries to restrict entry of the imported product when it is observed that there is increased imports of particular products causing serious damage to the domestic industry.
• The provision is facilitated in GATT (General Agreement on Tariffs and Trade), 1994.
• In contrast to antidumping duties and countervailing duties, safeguard measures are, in principle, applied regardless of the exporting country.