Question

What is dumping? Can US companies succeed in getting tariffs imposed on imports by arguing for dumping? what method does US trade administration use to detect dumping? Why it is so difficult to detect whether dumping has truly occurred?

Answer 1

Dumping is occured when the companies reduce their export rates in order to gain market.They are reduced the price of the commodities below that selling price in home country.They also charge the price below the actual cost of production.They can raise the price of exports until the market in other nation has been eliminated.

Anti dumping legislation prohibits goods that are sold at price below to the production costs by introducing tarrifs,that increase the price of the products and reflected on production costs.Dumping isn't permitted under WTO rules,nations believes they are on the receiving end of dumped products,can lodged complaint with WTO.In the recent periods antidumped law suits has increased from about 100 cases annually.

US Antidumping Act 1916 imposes penalties and imprisonment on parties engaged in dumping imports and sales with a view to harming a domestic industry in the United States.The legislation also requires dumping injured parties to claim triple compensation for injured sustained.

Zeroing is a procedure applied by the United States and the EU in which goods are classified in to many classes under investigation.Where goods have one sort higher export price than domestic price ,the difference is referred to zero.This affected the dumping margins.

The International Trad Commission decides whether or not as a result of imports of dumped or subsidized goods the domestic currency injured.The International Trade Commission considers all related economic factors like production, revenue, market share,jobs for the domestic country.