Under international law, anti-dumping measures are regulated by Article VI of the GATT and the Agreement on Implementation of Article VI of the GATT 1994 (the Anti-Dumping Agreement). Anti-dumping laws allow a country to impose temporary duties on goods exported by a foreign producer when the export price of the goods is less than the normal value of 'like articles' sold in the exporter's domestic market and is causing injury to the domestic producers.

In India, anti-dumping actions are governed by Sections 9A, 9AA, 9B and 9C of the Customs Tariff Act 1975 (the Act) and the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995 (the Anti-dumping Rules) as amended from time to time.

The government agency entrusted with the determination of dumping and injury is the DA and the DGTR. However, the DA only conducts trade remedy investigations and recommends anti-dumping duties. The actual responsibility for imposition and collection of duties lies with the Ministry of Finance. 

India's domestic law envisages that where any article is exported from any country or territory to India at less than its normal value, upon the importation of the article into India, the Indian government, through the Ministry of Finance, may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to the article. 

Since dumping per se is not actionable, there is a further requirement to establish that there exists a causal link between dumped imports and injury caused to the domestic industry. The injury margin is arrived at by calculating the difference between the non-injurious price and the landed cost of the imported product.26 India follows the WTO's lesser duty rule; that is, the Indian government imposes anti-dumping duty to the extent of the margin of dumping or margin of injury, whichever is lower. The Indian government (through the Ministry of Finance) has the discretion not to implement the DA's recommendations on levying duty, in which case the findings automatically become infructuous and hold no legal authority.

The DA usually recommends a duty for a maximum period of five years from the date of its imposition unless revoked earlier. However, if the DA, in a review, is of the opinion that the cessation of the duty is likely to lead to continuation or recurrence of dumping and injury, it may from time to time extend the period of imposition for a further five years (known as a 'sunset review').29 During the five-year period, the DA may carry out a 'changed circumstances' review, which is also called a 'midterm review'. 

India also allows 'new-shipper' reviews. In such a review, any exporter who has not exported the product to India during the period of investigation may request a determination of individual dumping duty. However, a new-shipper review is only permissible if the applying exporter is not related to an exporter or producer in the exporting country who is subject to the anti-dumping duties. To prevent evasion of anti-dumping duty, the DA also undertakes anti-circumvention investigations with a view to extending the scope of duty levied in a previous investigation. 

The recommendation and imposition of anti-dumping duty is appealable to a specialised tribunal, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), constituted under Section 129 of the Customs Act 1962.