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26 August 2011

Input dumping originating in market Economy exporting countries

Introduction

Input dumping may be described as a situation where materials or components used in the manufacturing of an exported product are purchased internationally or domestically at dumped or below cost prices, whether or not the product itself is exported at dumped prices. Such dumped input is subsequently utilized by manufacturers based in the exporting country to manufacture and export low cost finished goods. In the alternative, the low cost input may be exported itself to be utilized in the manufacture of the finished goods.

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(Mr. S. Seetharaman & Mr. Sagnik Sinha are Executive Partner & Senior Associate respectively in Lakshmi Kumaran & Sridharan, New Delhi)

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