Anti-Dumping Duty in India: How It Works, Current Orders & Impact

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.

What Is Anti-Dumping Duty?

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.

Legal Framework

The legal authority for imposing anti-dumping duties in India rests on:

Section 9A of the Customs Tariff Act, 1975 — empowers the Central Government to impose anti-dumping duty
Section 9B — deals with countervailing duties on subsidized imports (a related but distinct concept)
Section 9C — provides for appeals to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT)
The Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 — commonly called the "ADD Rules," these lay out the procedural framework for investigations
WTO Agreement on Implementation of Article VI of GATT 1994 (the Anti-Dumping Agreement) — India's domestic framework is aligned with this multilateral agreement

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.

How an Anti-Dumping Investigation Works in India

Understanding the investigation process is critical for importers because it determines whether you'll face additional duties and how much they'll be.

Step 1: Filing of Application

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 normal value of the product in the exporting country
The export price to India
The margin of dumping
Material injury to the domestic industry (decline in production, sales, profits, market share, employment, etc.)

Step 2: Initiation of Investigation

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.

Step 3: Provisional Duty

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.

Step 4: Final Determination and Definitive Duty

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.

Step 5: Duration and Review

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.

How Anti-Dumping Duty Is Calculated

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.

Key Formulas

Dumping Margin = Normal Value – Export Price
Injury Margin = Non-Injurious Price (NIP) – Landed Value of Imports
Anti-Dumping Duty = Lower of Dumping Margin and Injury Margin

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:

Dumping Margin = USD 1,100 – USD 800 = USD 300/MT
Injury Margin = USD 1,000 – USD 800 = USD 200/MT
ADD imposed = USD 200/MT (the lesser of the two)

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.

Impact on Landed Cost

Consider an importer bringing in 500 MT of a chemical from China:

CIF Value: USD 800 × 500 = USD 400,000
Basic Customs Duty (say 7.5%): USD 30,000
Anti-Dumping Duty: USD 200 × 500 = USD 100,000
IGST (18% on assessable value + BCD + ADD): approximately USD 95,400

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. Indiapaar lets you calculate duties with anti-dumping layers factored in, so you know your exact landed cost before the shipment sails.

Major Anti-Dumping Orders Currently in Force in India

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:

Chemicals and Petrochemicals

|---|---|---|---|

Steel and Metals

|---|---|---|---|

Textiles and Fibres

| Product | Country of Origin | Duty Range |

|---|---|---|

| Viscose Staple Fibre | China, Indonesia | USD 48–259/MT |

| Nylon Filament Yarn | EU, China, others | Variable |

Food-Related and Agri-Inputs

This is particularly relevant for food businesses:

Sodium Citrate from China — ADD of USD 32–152/MT (used extensively in food processing, beverages)
Citric Acid from China — has been subject to ADD investigations multiple times
Furfuryl Alcohol from China — ADD of USD 234–578/MT (used in food-grade resins)
Vitamin C (Ascorbic Acid) from China — past investigations have impacted food supplement importers

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.

Anti-Dumping Duty and GST: The Tax Treatment

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:

Assessable value (CIF + landing charges)
Basic Customs Duty
Anti-Dumping Duty
Any other additional duties

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.

How to Check If Your Import Attracts Anti-Dumping Duty

This is where many importers get caught off guard. Anti-dumping duties are product-specific and country-specific. You need to check:

Your HSN code — Anti-dumping notifications reference specific tariff headings. Incorrect HSN classification can mean you either miss an applicable ADD or wrongly pay one. Getting your HSN classification right is the foundation of compliance.

Country of origin — ADD applies to specific countries. If your supplier is in a country covered by an ADD order, you need a proper Certificate of Origin if you're claiming the goods originate elsewhere.

Producer/exporter-specific duties — Many ADD orders specify different duty rates for different producers. For example, an ADD on Chinese steel may have a rate of USD 100/MT for Producer A, USD 200/MT for Producer B, and USD 300/MT for "all others." Knowing your specific exporter matters.

DGTR website and customs notifications — Check dgtr.gov.in for current investigations and final findings. Check cbic.gov.in for customs notifications implementing duties.

> Using tools like Indiapaar 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.

Challenging or Avoiding Anti-Dumping Duty

Legitimate Strategies

New Shipper Review (Rule 22): If your exporter was not investigated in the original case and therefore falls under the residual "all others" rate, they can apply for a new shipper review to get an individual duty rate — which may be lower or even zero.

Mid-Term Review (Rule 23): If circumstances have changed (e.g., costs in the exporting country have risen, the dumping margin has reduced), any interested party can request a mid-term review to modify the duty.

Country of Origin Change: If you can legitimately source from a country not covered by the ADD order, no duty applies. But be cautious — circumvention investigations (under Rule 25A, inserted in 2012) can catch cases where goods are routed through a third country to avoid ADD.

Appeal to CESTAT: Under Section 9C of the Customs Tariff Act, any interested party can appeal the final findings of the DGTR to CESTAT. Recent landmark cases include:

- 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

What NOT to Do

Do not misclassify goods to avoid ADD — this attracts penalties under Section 114A of the Customs Act (penalty equal to duty evaded)
Do not misrepresent the country of origin — this is a serious customs offence under Sections 111 and 112 of the Customs Act, with potential confiscation and penalties up to 5 times the value of goods
Do not under-invoice to bring the landed value below the ADD reference price — this is fraud

Impact on Indian Industry and Trade

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.

Frequently Asked Questions

1. Is anti-dumping duty refundable if the goods are re-exported?

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.

2. Can anti-dumping duty be imposed retrospectively?

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.

3. How is anti-dumping duty different from safeguard duty?

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.

4. Does anti-dumping duty apply to goods imported under advance authorization or EPCG schemes?

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.

5. How do I know the exact ADD applicable to my specific shipment?

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