Anti-dumping duty, countervailing duty and safeguards: notes for bank exams

At a glance

Trade remedies are extra import duties a country may impose, within WTO rules, to protect domestic industry. Anti-dumping duty targets goods sold abroad below their normal value, countervailing duty offsets foreign government subsidies, and safeguard duty is a temporary shield against a sudden surge of fair imports. In India the DGTR investigates and recommends, and the Finance Ministry imposes the duty.

Key facts

Investigating body: Directorate General of Trade Remedies (DGTR), Department of Commerce, Ministry of Commerce and Industry; set up in 2018
Imposing authority: Department of Revenue, Ministry of Finance, through a customs notification
Anti-dumping duty: Section 9A, Customs Tariff Act, 1975
Countervailing duty (anti-subsidy): Section 9, Customs Tariff Act, 1975
Safeguard duty: Section 8B, Customs Tariff Act, 1975
Anti-dumping term: 5 years, extendable by a further 5 years after a sunset review
Pending review: an expiring duty can continue for up to one more year while the sunset review finishes
Safeguard limit (WTO): initial period up to 4 years; total up to 8 years (10 for developing countries)
WTO basis: GATT Article VI and the Anti-Dumping Agreement; the SCM Agreement for subsidies; GATT Article XIX and the Agreement on Safeguards
Duty cap: an anti-dumping duty cannot exceed the dumping margin

How it works

Dumping means exporting a product at a price lower than its "normal value", usually the price in the exporter's home market. A domestic industry files a petition with the DGTR, which checks three things: that dumping took place, that the domestic industry suffered material injury, and that the dumping caused the injury. If all three hold, the DGTR issues final findings recommending a duty, usually in dollars per tonne and often different for each named exporter. The Finance Ministry then decides whether to notify it.

Remedy	Targets	Needs proof of	Section (CTA 1975)	Applies to
Anti-dumping duty	Unfairly low export prices	Dumping, material injury, causal link	9A	Specific countries/exporters
Countervailing duty	Foreign subsidies	Subsidy, injury, causal link	9	Specific countries
Safeguard duty	Sudden surge of imports (even if fair)	Serious injury or threat	8B	All sources (non-discriminatory)

Safeguards are the hardest to justify because they hit fairly traded imports; WTO rules require them to be temporary and gradually liberalised. Anti-dumping is by far the most used remedy, and India is among the heaviest users of it, with China the most frequent target.

Recent developments

3 Aug 2026: After a fresh investigation, the DGTR recommended five-year anti-dumping duties of US$460–681 per tonne on titanium dioxide from China. An earlier duty on the same product, notified in May 2025, had been withdrawn in December 2025 after the Calcutta High Court sent the case back to the DGTR on a petition by the Indian Paint Association.

Exam traps

The DGTR only recommends; the Finance Ministry (Department of Revenue) imposes the duty.
Countervailing duty is Section 9 and anti-dumping is Section 9A, not the other way round.
Safeguard duty does not require any unfair trade practice and applies to imports from all countries.
DGTR replaced the older DGAD (Directorate General of Anti-Dumping and Allied Duties) in 2018.
A duty does not lapse automatically if a sunset review is pending: it can run up to one more year.

Quick check

Q: Under which section of the Customs Tariff Act is anti-dumping duty imposed? A: Section 9A.
Q: For how long does an anti-dumping duty normally last? A: Five years, unless revoked or extended after a sunset review.
Q: Which body investigates dumping cases in India? A: DGTR, under the Ministry of Commerce and Industry.

Anti-dumping duty, countervailing duty and safeguards