Anti-Dumping Duty

India has decided to extend anti-dumping duty on methylene chloride (chemical used in manufacturing pharmaceuticals, agro-chemicals, fragrance chemicals, etc.) imports from China. Anti-dumping duty is a tool to curb dumping i.e. situation in which a country exports a product at prices cheaper than the prices of that product in the export destination’s domestic market. Anti-dumping duty is permissible under the WTO regime. It is imposed after investigation by quasi-judicial body such as Directorate General of Trade Remedies.