What is an anti-dumping duty?

An anti-dumping duty, also known as an anti-dumping levy, is an extra duty imposed on imported products. This duty is usually imposed when a product is sold below cost price or at an unfairly low price in another country, which can be detrimental to domestic producers in the importing country. The anti-dumping duty is intended to neutralise this unfair competition and protect domestic industries. This duty can vary from a fixed amount to a percentage of the import price.