How can local competitors in India use antidumping procedures as a competitive tool against foreign competitors?

Anti-dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti-dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The use of anti-dumping measure as an instrument of fair competition is permitted by the WTO. In fact, anti-dumping is an instrument for ensuring fair trade and is not a measure of protection per se for the domestic industry. It provides relief to the domestic industry against the injury caused by dumping. In fact, anti-dumping is a trade remedial measure to counteract the trade distortion caused by dumping and the consequential injury to the domestic industry. Only in this sense, it can be seen as a protective measure. It can never be regarded as a protectionist measure. Local competitors are those producers whose collection output constitutes a major proportion of total India production. India can use antidumping procedures as a competitive tool against foreign competitors by having relief in the domestic industries in the form of anti-dumping duties and price undertakings. Anti-Dumping Duties: Duties are imposed on a source specific basis and can be expressed either on ad valoram or specific basis. Lesser Duty Rule: Under the GATT provisions, the national authorities cannot impose duties higher than the margin of dumping. Injury Margin: Under the Indian Laws, the govt. is obliged to restrict the anti-dumping duty to lower of the dumping margin and the injury margin which is the difference between the fair selling price due to the domestic industry and the landed cost of the product under consideration. Landed cost for this purpose is taken as the assessable value under the Customs Act and the basic customs duties. De Minimis Margins: Any exporter whose margin of dumping is less than 2% of the export price shall be excluded from the purview of anti-dumping duties even if the existence of dumping, injury as well as the causal link are established. Price Undertakings: The Designated Authority may suspend or terminate investigation if the exporter concerned furnished an undertaking to revise his price to remove the dumping or the injurious effect of dumping as the case may be. No undertaking can however be accepted before preliminary determination is made.