Anti dumping duty is levied on which one of the following:
The dumped imports which is causing damage to the domestic industry in the importing country.
Concept: Dumping means a foreign producer exports goods to another country at a price below their normal (home-market) value; anti-dumping duty is the trade remedy a country is allowed to impose to neutralise this unfair pricing.
An anti-dumping duty is levied by the importing country on such dumped imports precisely when they are causing, or threatening to cause, material injury to the domestic industry that competes with them. The duty raises the price of the dumped goods to a fair level and protects home producers. For example, if a foreign firm sells steel in India far below what it charges at home and this undercuts and harms Indian steel makers, India can impose an anti-dumping duty equal to the dumping margin.
Option check: It is not levied on a country's own exports (option 1), nor on goods merely imported for re-export (option 2), nor on goods re-entering for further trade (option 4); none of these involves injury to the importing country's domestic industry. Only dumped imports that damage the domestic industry attract it, which is option 3.
Hence anti-dumping duty is levied on the dumped imports which are causing damage to the domestic industry in the importing country.
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