What is meant by 'anti-dumping duties' and when can they be imposed?

• A. They are general tariffs to protect infant industries.
• B. They are extra duties imposed for all imported goods regardless of price.
• C. They are fees charged for import licenses.
• D. They are extra duties imposed when imports are sold at less than fair market value causing injury to domestic industry; they are applied after an investigation confirms dumping and injury.

Answer: (D)

Anti-dumping duties are a trade remedy used to counter imports that are sold in a foreign market at less than their normal value and that injure a domestic industry. They are not general tariffs or fees applied to all imports. The key is that these duties come into play only after a formal investigation shows two things: dumping—where the export price is below the product’s normal value or below cost of production—and injury or threat of injury to the domestic industry, with a causal link between the dumped imports and the harm. The duties then offset the dumping margin, restoring fair competition by raising the price of the dumped imports to reflect their normal value. They are applied for a defined period and can be reviewed later.