Anti-dumping Duties (AD)

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Anti-dumping Duties (AD)

Anti-dumping duties are a protectionist measure used by national governments to counter the practice of dumping. Dumping occurs when a company sells its products in a foreign market at a lower price than it charges in its domestic market, often with the intention of gaining a competitive advantage. These duties are intended to offset the unfair pricing practices and restore a level playing field for domestic producers. The imposition of anti-dumping duties acts as a deterrent to companies that engage in dumping and helps maintain fair competition in the marketplace. The decision to impose anti-dumping duties is usually based on an investigation conducted by domestic authorities. This investigation looks at whether the imported products are being sold below their fair market value and are causing material injury to the domestic industry. If such evidence is found, anti-dumping duties may be imposed, usually in the form of additional tariffs on the dumped imports.

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