Section 9A of CTA, 1975 : Section 9A: Anti-Dumping Duty On Dumped Articles

Explanation using Example

Imagine a scenario where a company in Country X produces bicycles and exports them to India at a price significantly lower than what it charges domestically. Indian bicycle manufacturers are unable to compete with these low prices and suspect that the company in Country X is dumping its bicycles in the Indian market, potentially harming the local industry.

Following an investigation by the Indian government, it is determined that the bicycles are indeed being sold at less than their normal value, which is the price at which they are sold in Country X. The government, under Section 9A of The Customs Tariff Act, 1975, decides to impose an anti-dumping duty on the imported bicycles from Country X to protect the domestic industry. This duty is equal to the margin of dumping, which is the difference between the export price to India and the normal value in Country X.

The anti-dumping duty is announced through a notification in the Official Gazette and is collected on top of any other existing duties. This duty will remain in effect for five years, unless extended after a review, or revoked earlier if conditions change.