Anti-dumping duty is an additional import duty imposed to protect domestic industry when foreign goods are sold below their normal value, causing or threatening injury to local producers.
Anti-dumping duty is an additional import duty that a government imposes to protect its domestic industry from unfairly priced imports. It applies when foreign goods are "dumped" — sold in the importing country below their normal value — in a way that causes or threatens injury to local producers.
Unlike a general tariff, which applies broadly, anti-dumping duty is a targeted trade remedy aimed at specific products from specific exporters found to be dumping.
Dumping occurs when an exporter sells goods in a foreign market at a price lower than the "normal value" — usually the price of the same goods in the exporter's home market, or a constructed measure of cost plus a reasonable margin. When dumped imports undercut local producers and harm them, the importing country may respond with anti-dumping duty to restore fair competition.
Anti-dumping duty is not automatic. It follows an investigation by the designated authority in the importing country, which examines two main questions: whether dumping has occurred, and whether it has caused or threatens material injury to domestic industry. If both are established, the authority sets a duty designed to offset the dumping margin — the gap between the export price and the normal value.
A normal customs duty applies to imports across the board based on the tariff schedule and the product's HS Code. Anti-dumping duty is different: it is an extra, product- and exporter-specific charge imposed only after a finding of dumping and injury. This means two shipments of the same product can attract different anti-dumping duties depending on their exporter and country of origin.
For importers and B2B buyers, anti-dumping duty can significantly raise the landed cost of affected goods. Before committing to a supplier or country, buyers should check whether the product is subject to anti-dumping measures, since these can change the economics of a deal. The correct Certificate of Origin and accurate classification are essential, because origin determines whether a specific anti-dumping duty applies.
Anti-dumping duty is one of several trade-remedy tools. Others include countervailing duties, which offset foreign government subsidies, and safeguard measures, which respond to surges in imports. All aim to protect domestic industry from specific forms of unfair or damaging trade.
Anti-dumping duty is a targeted import charge that protects domestic producers from goods sold below fair value. Imposed only after an investigation into dumping and injury, it can substantially increase the cost of affected imports. Importers and B2B buyers should verify whether anti-dumping measures apply to their products and origins before finalising a purchase, to avoid unexpected costs and stay compliant.