Antidumping is a means to restrict international trade without tariffs. It is supposed to protect significantly endangered domestic industries in cases where foreign firms' prices are below the cost of production. Since countries can rule domestically whether native industries are in danger and whether foreign firms' prices are below the cost of production, and since the foreign cost of production cannot be easily known by domestic courts, the institutional process surrounding the investigation and determinations has significant impacts beyond the antidumping duty. Since domestic firms can file an antidumping suit and trials are costly and the decisions are difficult to foresee, there is a large potential of strategic actions and distorted market outcomes. International trade is the exchange of goods and services across international borders. ... A tariff is a tax placed on imported and/or exported goods, sometimes called a customs duty. ...
The Department of Commerce and the International Trade Commission administer the U.S. antidumping laws.
The Stanley R. Mickelson Safeguard complex in Nekoma, North Dakota, with the separate long-range detection radar located further north at Concrete, North Dakota, was the only operational anti-ballistic missile system ever deployed by the United States. ... A subsidy is generally a monetary grant given by government in support of an activity regarded as being in the public interest. ...
When an antidumping or countervailing duty order is imposed, Commerce instructs the Bureau of Customs and Border Protection (Customs) to assess antidumping or countervailing duties on imports of the product into the United States to offset the unfair trade practice.
Under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA or Byrd Amendment), antidumping and countervailing duties collected are distributed annually to affected domestic producers for qualifying expenditures incurred.
Commerce and the ITC review each outstanding antidumping and countervailing duty order every five years to determine whether revocation of the order would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.
Antidumping laws can have a profound effect on both domestic and international firms and are increasingly used by nations around the world to reduce competition in domestic markets.
Since antidumping decisions taken by governments can materially change the competitive position of the firm, a better understanding of the decision process of an entity which is a key player in the determination of injury is beneficial for the international firm.
Antidumping actions are seen as a prime approach used by firms and governments to provide for a competitive advantage which could not be achieved with commercial strategy.
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