Dumping is, in WTO parlance, a situation of price discrimination, where the price of a product when sold to the importing country is less than the price of the same product when sold in the home market. Such practice is considered unfair when it causes or threatens to cause injury to the domestic industry producing like or similar product. In such situations, the authorities of importing countries are allowed, if certain requirements are met, to take action to offset injurious dumping through imposition of anti-dumping duties.

Until the early 1990's, anti-dumping cases were mostly initiated by developed countries. Since then, the trend has changed and it is now alike in both developed and developing countries. Developing countries such as India and China with substantive interest in international trade are now the biggest users of anti-dumping measures.

In Pakistan the Anti-Dumping Duties Ordinance, 2000 (the "Anti-Dumping Ordinance") provides a due process for conducting anti-dumping investigation where the NTC is required to carry out detailed analysis of information submitted or gathered and allows ample opportunities to all concerned in order to defend their interests.

Upon receipt of an anti-dumping application, information is gathered by usually approaching three sets of parties namely, the foreign exporters/producers alleged of dumping, the importers of allegedly dumped product and other domestic manufacturing units not party to the application.

After receipt of the information from parties, the NTC verifies the same through verification visits (on-the-spot investigation) at the premises of the party concerned. In case a party does not respond to the NTC's request for information, the NTC uses 'best information available' in making its determination, and in some cases, it may result in a determination less favorable then a determination made for those exporters who respond. The government of exporting countries whose product is subject to investigation is also kept informed of all developments.

The scheme of investigation under the Anti-Dumping Ordinance can be divided into four stages:

The pre initiation stage The NTC upon receipt of an anti-dumping application examines the adequacy and accuracy of the information supplied in the application to determine whether there is sufficient evidence of dumping and injury to justify initiation of investigation, or, to reject the application.


The initiation of investigation stage Upon determination that there is sufficient evidence of dumping and injury to the domestic industry in the application, the NTC initiates the investigation. Soon thereafter, the NTC starts gathering information mainly from the foreign exporters/producers, importers and the other domestic units through questionnaires specifically devised for the purpose.


Preliminary Determination stage At this stage the NTC makes a preliminary determination (negative or affirmative) of dumping and injury, based on the information available at the time, and determines whether provisional measures are/are not necessary to prevent injury being caused to domestic industry during the course of the investigation. The NTC may impose a provisional measure in the interim while the investigation is still in progress.


Final Determination stage The NTC reaches a final determination within a statutory time period of 12 months, where, if it makes an affirmative final determination of dumping and injury to the domestic industry, the NTC imposes an anti-dumping duty in an amount equal to dumping margin established for a period which may extend up to five years.

Within these stages, interested parties are afforded opportunities for defense through hearings, confrontational meetings, disclosure of dumping calculation (limited to exporters), disclosure of essential facts, verification visits by the officers of the NTC etc.


Review of anti-dumping duty While the anti-dumping duty is in force, any party can request the NTC for a review by submitting positive evidence substantiating the need for a review, inter alia, information indicating that the circumstances have changed and that either dumping is no longer taking place, and/or that the applicant industry is no longer suffering injury.

After expiry of five years, the NTC may extend the anti-dumping duty for a further period of five years, if after receipt of a request from the domestic industry the NTC determines that the expiry of duty would be likely to lead to continuation or recurrence of dumping and injury. However, such extension of duty is made after following a due process provided for under the law.