India Imposes Countervailing Duty on Chinese Pigments

The Indian Ministry of Finance has imposed a definitive countervailing duty on “Effect pearlescent pigments or mica pearlescent pigments, excluding effect pigments for automotive applications” imported from China PR. This action follows an investigation by the Directorate General of Trade Remedies (DGTR), which concluded that these goods were exported at subsidized prices, causing material injury to the Indian domestic industry. The duty, ranging from 11.18% to 25.76% of the CIF value, is effective for five years from June 26, 2025. Specific duty rates apply to different producers, with a general rate for all other Chinese producers. The notification also clarifies how this countervailing duty interacts with existing anti-dumping duties and specifies exemptions for automotive applications.

MINISTRY OF FINANCE
(Department of Revenue)

Notification  No. 04/2025-Customs (CVD) | Dated: 26th June, 2025

G.S.R. 420(E).— Whereas, in the matter of “Effect pearlescent pigments or mica pearlescent pigments, excluding effect pigments for automotive applications” (hereinafter referred to as the subject goods) falling under tarrif items 3206 11 10,3206 11 90,3206 19 00 and 3206 49 90 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in or exported from China PR (hereinafter referred to as the subject country), and imported into India, the designated authority in its final findings, published in the Gazette of India, Extraordinary, Part I, section 1, vide Notification 06/8/2024-DGTR, dated the 28^th March, 2025, read with Corrigendum Notification No. CVD (OI) – 01/2024 dated the June 16^th,2025 has come to the conclusion that-

i. the subject goods have been exported to India from the subject country at subsidised prices;

ii. the domestic industry has suffered material injury due to subsidisation of the subject goods;

iii. material injury has been caused by the subsidised imports of the subject goods originating in or exported from the subject country,

and has recommended the imposition of definitive countervailing duty on imports of the subject goods originating in or exported from the subject country.

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (6) of section 9 of the Customs Tariff Act read with rules 20 and 22 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the Designated Authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under tarrif item of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the countries as specified in the corresponding entry in column (4), exported from the countries as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6), and imported into India, countervailing duty calculated at the rate mentioned in the corresponding entry in column (7) of the said Table, namely:-

DUTY TABLE

Note 1: For collection of anti-dumping/countervailing duty measures, –

a. in case of effect pearlescent pigments or mica pearlescent pigments of natural grade for industrial application, quantum of countervailing duty shall be equivalent to the difference between amount payable as per column (7) and antidumping duty payable as per customs Notification No. 13/2023-Cus (ADD), dated 22^nd November 2023;

b. in case of effect pearlescent pigments or mica pearlescent pigments of natural grade for cosmetic application, since no anti-dumping duty is payable, the quantum of countervailing duty shall be equivalent to the amount payable as per column (7);

c. in case of effect pearlescent pigments or mica pearlescent pigments of natural grade for automotive application, no countervailing duty should be charged; and

d. in case of effect pearlescent pigments or mica pearlescent pigments of synthetic grade, since no anti-dumping duty is payable, the quantum of countervailing duty shall be equivalent to the amount payable as per column (7).

Note 2: The customs classification is indicative only and not binding on the scope of the product under consideration.

2. The countervailing duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.

Explanation: – For the purposes of this notification-

a. the rate of exchange applicable for the purposes of calculation of such countervailing duty shall be the rate which is specified in the notification of the Government of India in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Act.

b. “CIF value” means the assessable value as determined under section 14 of the Customs Act, 1962 (52 of 1962).

[F. No. CBIC-190349/30/2025-TRU Section-CBEC]
DHEERAJ SHARMA, Under Secy.