Anti-dumping duty

Anti-dumping duty

Part of: Prelims and GS-III- Economy Context Directorate General of Trade Remedies (DGTR) has recommended the imposition of anti-dumping duty on a pharma raw material — Ceftriaxone Sodium Sterile — from China to guard local players from cheap imports.

• Ceftriaxone Sodium Sterile is an API used in formulation for treating diseases such as lower respiratory tract infection, skin and surgical prophylaxis.
• The Finance Ministry will take the final decision on imposing the duty. 

About the DGTR authority

• DGTR functions as an attached office of the Department of Commerce, Ministry of Commerce and Industry.
• DGTR deals with Anti-dumping, Countervailing Duty (CVD) and Safeguard measures. 
• It also provides trade defence support to our domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.
• DGTR provides a level playing field to the domestic industry against the adverse impact of the unfair trade practices

About Anti-dumping Duty

• An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are dumped.
• The imposition of anti-dumping duty is permissible under the World Trade Organization regime. 
• It is aimed at ensuring fair trading practices and creating a level-playing field for local producers vis-a-vis foreign producers and exporters.
• These tariffs can also lead to higher prices for domestic consumers.

What is Active Pharmaceutical Ingredient (API)? 

• Part of any drug that produces its effects. 
• Intended to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease.