Anti-Dumping Duty

Anti-Dumping Duty
A protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. In the United States, anti-dumping duties are imposed by the Department of Commerce and often exceed 100%. They come into play when a foreign company is selling an item significantly below the price at which it is being produced. The logic behind anti-dumping duties is to save domestic jobs, although critics argue that this leads to higher prices for domestic consumers and reduces the competitiveness of domestic companies producing similar goods.

Some people believe that a foreign company will even lower the price of the product it is “dumping” below its own cost to manufacture the good in order to drive domestic competitors out of business and later raise prices. Even when a foreign company sells its exports at the same or a higher price than they sell for in the company's home country, the importing country can decide that the exporter is guilty of “dumping” and impose an anti-dumping duty.

Anti-dumping duties are believed to distort the market because the government cannot determine what constitutes a fair market price for any good or service. This is because fair market value is whatever price the market will bear as determined by supply and demand.


Investment dictionary. . 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • anti-dumping duty — Tariff, purpose of which is to prevent imports of goods for sale at a lower price than that charged in the country of origin. See Dumping Act …   Black's law dictionary

  • anti-dumping duty — Tariff, purpose of which is to prevent imports of goods for sale at a lower price than that charged in the country of origin. See Dumping Act …   Black's law dictionary

  • anti-dumping duty — noun a tariff imposed to prevent dumping • Hypernyms: ↑protective tariff …   Useful english dictionary

  • anti-dumping duties — Customs duties imposed on imports from specific countries in addition to the normal or preferential duty; such duties can be introduced where the export price is below the normal value, provided such imports cause or threaten to cause material… …   Financial and business terms

  • Dumping (pricing policy) — This article is about the economics term. For industrial relations and social justice issue, see Social dumping. For the tax avoidance term, see SUTA dumping. In economics, dumping is any kind of predatory pricing, especially in the context of… …   Wikipedia

  • customs duty — A tax charged on goods imported into the European Union ( EU). It is based on the value of the imported goods (see Ad Valorem duty) and the description of the goods. Remember that imported goods may be liable to other charges, such as Anti… …   Financial and business terms

  • import duty — Taxes HM Customs and Excise charge on goods imported into the European Union. These include Customs Duty, Common Agricultural Policy ( CAP) Charges, and Anti Dumping Duty ( ADD). HM Customs & Revenue Glossary * * * import duty import duty ➔ duty… …   Financial and business terms

  • countervailing duty — / kaυntəveɪlɪŋ ˌdju:ti/ noun a duty imposed by a country on imported goods, where the price of the goods includes a subsidy from the government in the country of origin. Also called anti dumping duty …   Dictionary of banking and finance

  • countervailing duty —  Import tax intended to protect a domestic industry.  ► “Anti dumping and countervailing duty laws (jointly referred to as Title VII laws), for example, are used to counter the alleged practices of dumping and government subsidization,… …   American business jargon

  • ADD — Anti Dumping Duty A customs duty on imports, providing protection against the dumping of cheap goods in the European Union ( EU) by foreign producers. HM Customs & Revenue Glossary * * * add UK US /æd/ verb [T] ► to put something with something… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”