Dumping presentation Part BMS 6th sem..!!

1. GROUP NO.
14

2.  Rajeshree Desai 7718
 Sharayu Mhadgut 7757
 Prashant Mirgule 7759
Group no. 14 MCC .TYBMS (2011)

3. “Dumping is a situation of international price
discrimination, where the price of a product when
sold to the importing country is less than the
price of the same product when sold in the
market of the exporting country.”
Group no. 14 MCC .TYBMS (2011)

4. Example: China & India Coming Into International
Business Transaction….!!
Product: Fertilizers & Pesticides
Exporter Importer
e.g. China Selling India
Home Foreign
Market Market
Lower Than the Home
Market Price
Group no. 14 MCC .TYBMS (2011)

5.  As a short-term predatory pricing
strategy to drive competitors out
of the market
 As a result of market intervention
or state subsidies that enable
companies to artificially lower
their prices
Group no. 14 MCC .TYBMS (2011)

6.  SPORADIC Dumping
 INTERMITTENT Dumping
 LONG-PERIOD Dumping
Group no. 14 MCC .TYBMS (2011)

7. Fundamental parameters are determined.
a) Normal domestic selling price of the product
or similar products in the exporting country.
b) Export price being offered in the importing
country.
Domestic price of exporter > export price
Dumping = price discrimination between national
markets
Dumping causes import nation injury…!! .TYBMS (2011)
Group no. 14 MCC

8.  Injury parameters include factors such as:
o Actual or potential decline in sales
o Loss of profits
o Decrease in Market share
o Low Capacity utilization
o Lower Employment
o Wages
o Ability to raise capital
Group no. 14 MCC .TYBMS (2011)

9.  When the price causes or threatens to cause
material injury to the domestic industry of the
importing country can there be an action against
dumping.
 An anti-dumping investigation can be started
only if there is a written complaint on behalf of
the domestic industry.(a significant share of the
domestic producers have to support the
complaint).
Group no. 14 MCC .TYBMS (2011)

10. Group no. 14 MCC .TYBMS (2011)

11.  It is a measure to rectify the situation arising out of
the dumping of goods and its trade distortive effect.
 Re-establish fair trade.
 The use of anti dumping measure as an instrument
of fair competition is permitted by the WTO.
 It provides relief to the domestic industry against the
injury caused by dumping and charge to exporters
country Anti dumping duty.
Group no. 14 MCC .TYBMS (2011)

12. Sufficient evidence to the effect that ;
 there is dumping
 there is injury to the domestic industry; and
 there is a causal link between the dumping
and the injury, that is to say, that the dumped
imports have caused the alleged injury.

13. ANTIDUMPING DUTY NORMAL CUSTOMS DUTY
 To guard against unfair  means of raising revenue and for
trade practices overall development of the
economy.
 trade remedial measures.  trade and fiscal policies of the
Government
 not necessary in the nature  Necessary in nature
 levied against exporter  universally applicable to all
specified by the importing imports irrespective of the
country. country of origin and the
exporter.
Group no. 14 MCC .TYBMS (2011)

14. Business Standard - 15 December,
2009
Group no. 14 MCC .TYBMS (2011)

15.  India to impose antidumping duties on some
equipment imported from China.
 Chinese companies entered the Indian
telecom market, offering products and
services at prices about a third cheaper than
that of global competitors.
 Indian manufacturers hurt as well
Group no. 14 MCC .TYBMS (2011)

16.  Fibrehome Telecommunication Technologies
Ltd. will have to pay a duty of 23.6%, Alcatel-
Lucent Shanghai Bell Co. 29% and Israel's ECI
Telecom Ltd. 93% on equipment imported
from China
Group no. 14 MCC .TYBMS (2011)

17. The Indian Shrimp
Industry Organizes to
Fight the Threat of Anti-
Dumping Action
(CASE STUDY)
Group no. 14 MCC .TYBMS (2011)

18.  The Ad Hoc Shrimp Trade Action Committee
(ASTAC), an association of shrimp farmers in eight
southern states of the United States, filed an anti-
dumping petition against six countries —
Brazil, China, Ecuador, India, Thailand and Vietnam.
 The petition alleged that these countries had dumped
their shrimps in the US market.
 on 21 January 2004 the US Department of Commerce
(DOC) announced the initiation of anti-dumping
investigations against the six countries.
Group no. 14 MCC .TYBMS (2011)

19.  The six named countries accounted for 74% of shrimp
imports in the US market.
 Imports from the six countries increased from 466 million
lbs. in 2000 to 650 million lbs in 2002.
 Import prices of the targeted countries had dropped by 28%
in the previous three years.
 The average unit value of the targeted countries in 2000 was
$3.54; this had fallen to $2.55 in 2002, on a headless, shell-on
equivalent basis.
Group no. 14 MCC .TYBMS (2011)

20.  The average dockside price for one count size of gulf
shrimp dropped from $6.08 to $3.30 per pound from 2000
to 2002.
 The United States was the most open market in the world.
 High tariff rates in other large importing countries
provided a powerful incentive for exporters to increase
shrimp shipments to the United States.
Group no. 14 MCC .TYBMS (2011)

21.  Commerce Minister on the possible threat to
Indian shrimp exports to the United
States, SEAI(Seafood Exporters Association
of India (Kochi, Kerala, India). and
MPEDA(The Marine Products Export
Development Authority) went into action.
Group no. 14 MCC .TYBMS (2011)

22.  First, there are specific variations between
the shrimp caught off the south-west coast of
the United States and in Indian waters, so
that prices are bound to be different.
 India’s shrimp exports are predominantly of
black tiger and scampi varieties which are not
cultivated in the United States’, according to
the president of SEAI.
Group no. 14 MCC .TYBMS (2011)

23.  Second, while fishing in the United States is a
capital-intensive activity calling for major
investment, in India shrimp capture is carried
out with a very low level of capital and
requiring hardly any investment.
 This makes the cost of production
considerably lower in India compared with that
for shrimp sea-caught off the US coast.
Group no. 14 MCC .TYBMS (2011)

24.  Department of Commerce observed that
India had a strong case as India was exporting
mainly ‘tiger shrimps which are not found
there and that too, in unprocessed form’.
Noting that 80% of shrimp consumption in
the United States is met through imports.
Group no. 14 MCC .TYBMS (2011)

25.  Shrimp exports to the United States had
come almost to a standstill due to the
uncertainty regarding the contingent
applicability and incidence of the anti-
dumping duty.
Group no. 14 MCC .TYBMS (2011)

26.  The shrimp industry in India shouldn’t have
been focused on only one or two major
markets for growth.
 Previously it was Japan and during the last
few years, it has been the United States.
Group no. 14 MCC .TYBMS (2011)

27.  India learnt the importance of diversification.
 A. J. Tharakan, the SEAI president, has said
that they are exploring alternative markets to
make up for the loss of the lucrative US
market.
Group no. 14 MCC .TYBMS (2011)

28.  “On 27th Jan, 2010 exports to
US were resumed.”
Business line newspaper– 1st
Feb, 2010
Group no. 14 MCC .TYBMS (2011)

29. Group no. 14 MCC .TYBMS (2011)