Anti Dumping Laws in Pakistan
In Pakistan the concerned legislation for Anti-Dumping is the Anti-Dumping Duties Act, 2015 (the “Anti-Dumping Law”) which has repealed the Anti-Dumping Duties Ordinance, 2000. Before enactment of Anti-Dumping Duties Ordinance, 2000, the issue of anti-dumping was governed by the Import of Goods (Anti-Dumping and Countervailing Duties) Ordinance, 1983. Anti-Dumping Duties Ordinance, 2000 repealed the Import of Goods (Anti-Dumping and Countervailing Duties) Ordinance, 1983 and Section 4 of National Tariff Commission Act, 1990.
Dumping means an act of selling a large quantity of goods at less than fair value. Dumping involves selling abroad at a price that is less than the price used to sell the same goods at home i.e. lesser than normal or fair value of the products. In order to be unlawful, the dumping must threaten or cause material injury to a domestic industry in Pakistan. Dumping is a common term used in international trade for an unfair strategy by an exporting nation to gain market share in the importing nation. Dumping is recognized by most of the trading world as an unfair practice taken to price discrimination as an antitrust offence. In dumping, an exporting country reduces the price of its product to gain market share in the foreign market. The most important criteria whether the goods are being dumped or not is that goods are being sold at a higher price in the home market and the prices are lower in the foreign market. Dumping can be termed as an unfair strategy by an exporting nation to gain market share in the importing nation. As such anti-dumping is not prohibited by the General Agreement on Tariffs and Trade, 1994 (the “GATT”) however, the economists do not consider any economic justification for antidumping.
The main ingredients for initiation and conduct of investigation under Anti-Dumping Law are as follows:
