India is one of the most active users of anti-dumping measures globally. Between 2015 and 2023, India initiated over 230 anti-dumping investigations — second only to the United States. For importers, compliance professionals, and food businesses sourcing raw materials internationally, understanding anti-dumping duty in India is not optional. A single anti-dumping notification can add anywhere from 5% to over 100% to your landed cost overnight, turning a profitable import into a loss-making one.
This guide covers everything you need to know: the legal framework, how investigations work, how duties are calculated, current major orders in force, and — critically — how to protect your business from unexpected duty shocks.
Anti-dumping duty (ADD) is a protective tariff imposed on imported goods that are sold in India at a price lower than their "normal value" in the exporting country. The core idea is simple: if a Chinese manufacturer sells steel in China at ₹50,000 per tonne but exports it to India at ₹35,000 per tonne, that ₹15,000 gap is considered "dumping." The anti-dumping duty is designed to neutralize this price difference and protect Indian domestic industry from unfair trade practices.
It is important to understand that anti-dumping duty is not a general import duty. It is an additional levy imposed on specific products from specific countries, and it is always targeted — never blanket.
The legal authority for imposing anti-dumping duties in India rests on:
The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, conducts investigations. The final duty imposition is done by the Ministry of Finance through customs notifications published in the Gazette of India.
Understanding the investigation process is critical for importers because it determines whether you'll face additional duties and how much they'll be.
Any Indian domestic producer (or group of producers representing at least 25% of total domestic production) can file an application with the DGTR alleging dumping, injury, and a causal link between the two. The application must include evidence of:
The DGTR examines the application and, if satisfied with the prima facie evidence, initiates an investigation by publishing a notice in the Gazette. Under Rule 5 of the ADD Rules, the investigation must be completed within 12 months, extendable by 6 months in special circumstances — meaning a maximum of 18 months.
If the DGTR makes a preliminary affirmative determination, it can recommend a provisional anti-dumping duty under Rule 13. This can be imposed as early as 60 days after initiation and remains in force for a maximum of 6 months. This is often the first time importers feel the financial impact.
After considering submissions from all interested parties (domestic industry, exporters, importers, and the government of the exporting country), the DGTR issues its final findings. If dumping, injury, and causal link are established, the DGTR recommends a definitive anti-dumping duty to the Ministry of Finance, which then issues a customs notification.
Definitive anti-dumping duties are imposed for a period of 5 years from the date of imposition (Section 9A(5) of the Customs Tariff Act). Before expiry, the domestic industry can request a sunset review (also called an expiry review). If the DGTR finds that cessation of duty would likely lead to continuation or recurrence of dumping and injury, the duty can be extended for another 5 years.
There is no statutory limit on how many times a sunset review can extend the duty, which is why some anti-dumping duties in India have been in force for 15–20 years.
The quantum of anti-dumping duty is determined using a concept called the dumping margin and the injury margin. India follows the lesser duty rule — meaning the duty imposed is the lower of the two margins. This is a WTO-consistent approach, though notably, the United States and some other countries do not follow this rule.
For example, if a chemical is exported to India at USD 800 per MT, its normal value in China is USD 1,100 per MT, and the Non-Injurious Price for Indian producers is USD 1,000 per MT:
The duty can be expressed as a fixed amount per unit (e.g., USD per MT), as a percentage of the CIF value, or as the difference between a reference price and the landed value.
Consider an importer bringing in 500 MT of a chemical from China:
The anti-dumping duty alone increases the landed cost by 25% in this scenario. This kind of impact can make or break import viability.
> Pro Tip: Before committing to a large import order, run your full duty calculation — including any applicable anti-dumping duties — through a reliable tool. CustomsAI lets you calculate duties with anti-dumping layers factored in, so you know your exact landed cost before the shipment sails.
As of 2024–2025, India has over 150 active anti-dumping duty orders covering a wide range of products. Here are some of the most significant ones affecting importers:
| Product | Country of Origin | Duty Range | Notification |
|---|---|---|---|
| Purified Terephthalic Acid (PTA) | China, Iran, Indonesia, others | USD 24–174/MT | Various, extended via sunset reviews |
| Caustic Soda | China, Japan, Qatar, others | USD 14–128/MT | Notification No. 6/2021-Customs (ADD) |
| Phenol | EU, Japan, Singapore, others | USD 24–253/MT | Multiple notifications |
| Product | Country of Origin | Duty Range | Notification |
|---|---|---|---|
| Hot Rolled Flat Products of Steel | China, Japan, Korea, others | USD 18–523/MT | Various ongoing |
| Cold Rolled Flat Products of Steel | China, Japan, Korea | Variable | Extended multiple times |
| Aluminium Foil (below 80 microns) | China | USD 0.39–1.63/kg | Notification No. 50/2020 |
| Product | Country of Origin | Duty Range |
|---|---|---|
| Viscose Staple Fibre | China, Indonesia | USD 48–259/MT |
| Nylon Filament Yarn | EU, China, others | Variable |
This is particularly relevant for food businesses:
For food importers, anti-dumping duty on raw materials can significantly increase production costs. If you're importing food-grade chemicals or additives, always check the latest DGTR notifications and customs circulars.
A common question among importers: Is GST applicable on anti-dumping duty?
Yes. Under Section 3(1) of the Customs Tariff Act, 1975, and Section 5(1) of the IGST Act, 2017, the value for computing IGST on imports includes:
This means anti-dumping duty has a cascading effect — you pay IGST on top of it. However, unlike Basic Customs Duty, anti-dumping duty paid during import cannot be claimed as credit under GST (as clarified by multiple advance rulings and CBIC circulars). This makes ADD a pure cost increase for importers.
This is where many importers get caught off guard. Anti-dumping duties are product-specific and country-specific. You need to check:
> Using tools like CustomsAI can help you instantly identify the correct HSN code for your product and flag any applicable anti-dumping duties, so you're never caught off guard. The platform offers 20 free classifications — a practical starting point for any importer or CHA.
- Shenyang Matsushita v. DGAD — where CESTAT set aside ADD due to inadequate injury analysis
- Huawei Technologies v. DGTR — procedural fairness challenges
- Reliance Industries v. Designated Authority — issues around normal value computation
Anti-dumping duties have a mixed legacy in India:
For domestic producers: ADD has been a lifeline for industries like steel, chemicals, and textiles. Indian steel producers have credited ADD on Chinese and Korean steel with preventing a collapse of domestic capacity during 2015–2019.
For downstream users and importers: ADD raises input costs. The pharmaceutical industry, for instance, has repeatedly raised concerns about ADD on Chinese APIs and intermediates increasing medicine production costs. The food processing industry faces similar challenges with duties on citric acid, sodium citrate, and other additives.
For consumers: Higher input costs can translate to higher retail prices, though this effect is often indirect and delayed.
The Indian government tries to balance these interests through the lesser duty rule and by allowing affected parties to participate in DGTR investigations.
Yes, under Section 74 of the Customs Act, 1962, if imported goods on which ADD has been paid are re-exported, a refund (drawback) of the ADD can be claimed, subject to the conditions prescribed — including that goods must be re-exported within 2 years and must be identifiable as the same goods that were imported.
Yes, under Section 9A(2) of the Customs Tariff Act, if a final determination is affirmative, the definitive ADD can be collected from the date of imposition of provisional duty. In critical circumstances (where there is a history of dumping or massive surge in imports), duties can be levied retrospectively up to 90 days before the date of provisional duty, as per Rule 13(3) of the ADD Rules.
Anti-dumping duty targets unfairly priced imports from specific countries. Safeguard duty (under Section 8B of the Customs Tariff Act) targets a sudden surge in imports causing serious injury, regardless of whether dumping is involved — and applies to imports from all countries (subject to de minimis exceptions for developing countries). Safeguard duty is temporary (maximum 4 years, extendable to 10 years) and requires the domestic industry to undertake adjustment measures.
Yes. Anti-dumping duty is generally payable even on imports made under export promotion schemes. However, specific exemption notifications may apply in certain cases — always check the relevant customs notification. Notably, Notification No. 18/2015-Customs exempts ADD on inputs imported under advance authorization for physical exports, but this exemption has been subject to litigation and amendment.
You need to match three things: the precise HSN classification of your product, the country of origin (and ideally the specific producer/exporter), and the applicable customs notification. This cross-referencing can be complex. Tools like
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