India Extends Anti-Dumping Duty on Phthalic Anhydride Imports from China and South Korea
The Government of India has continued the anti-dumping duty on imports of Phthalic Anhydride originating in or exported from People’s Republic of China and the Republic of Korea following the findings of a sunset review conducted by the Directorate General of Trade Remedies (DGTR).
Based on the DGTR’s Final Findings dated 7 May 2026, the Government concluded that the removal of the existing anti-dumping duty could lead to the continuation or recurrence of dumping and consequent injury to the domestic industry. Accordingly, the Ministry of Finance has issued a fresh notification imposing anti-dumping duties for another five years.
This notification supersedes Notification No. 43/2021-Customs (ADD) dated 9 August 2021, while preserving actions already taken under the earlier notification.
Why Has India Continued the Anti-Dumping Duty?
DGTR’s Sunset Review Findings
The Designated Authority examined whether discontinuing the existing anti-dumping duty would adversely affect the domestic industry.
The investigation concluded that:
- Dumping from China continues.
- Dumping from South Korea continues.
- Withdrawal of the existing duty is likely to result in continued or recurring dumping.
- Continued dumping may cause material injury to Indian manufacturers.
Based on these findings, continuation of anti-dumping duties was recommended.
Products Covered Under the Notification
Subject Goods
The notification applies to:
| Particular | Details |
|---|---|
| Product | Phthalic Anhydride |
| Customs Tariff Item | 2917 35 00 |
| Duty Type | Anti-Dumping Duty |
The duty applies irrespective of whether the goods are exported directly or routed through another country.
Countries Covered
The anti-dumping duty applies to imports originating in or exported from:
- People’s Republic of China
- Republic of Korea (South Korea)
The notification does not continue anti-dumping duty on imports from Thailand.
Anti-Dumping Duty Rates
Duty on Imports from China
| Origin | Exported From | Duty |
|---|---|---|
| China | China or any other country | USD 40.08 per Metric Tonne |
Duty on Imports from South Korea
| Origin | Exported From | Duty |
|---|---|---|
| Republic of Korea | Republic of Korea or any other country | USD 140.17 per Metric Tonne |
The duty applies regardless of the producer.
Effective Date and Validity
The anti-dumping duty shall remain in force for:
- Five years
- Effective from the date of publication of the notification in the Official Gazette
- Unless revoked, amended, or superseded earlier by the Central Government.
Payment of Duty
Currency
Although the duty amount is specified in US Dollars (USD), payment shall be made in Indian Rupees (INR).
The conversion will be based on:
- Exchange rate notified under Section 14 of the Customs Act, 1962
- Applicable exchange rate on the date of filing the Bill of Entry under Section 46 of the Customs Act.
Key Highlights of the Notification
Importers should note the following:
- Anti-dumping duty on Phthalic Anhydride has been extended.
- Applicable tariff classification remains 2917 35 00.
- China attracts USD 40.08 per MT.
- Republic of Korea attracts USD 140.17 per MT.
- Thailand is not covered under the renewed duty.
- Duty remains valid for five years.
- Duty applies even if goods are routed through third countries.
Note:
This notification replaces Notification No. 43/2021-Customs (ADD) dated 9 August 2021. However, any actions taken or liabilities arising under the earlier notification remain valid. Importers should review their sourcing arrangements, landed cost calculations, and customs compliance processes to account for the continued anti-dumping duty.
Impact on Importers
Importers dealing in Phthalic Anhydride should evaluate:
Procurement Costs
The continuation of anti-dumping duties increases the landed cost of imports from China and South Korea.
Supplier Selection
Businesses sourcing from affected countries should reassess supplier arrangements and consider alternative sourcing where commercially feasible.
Customs Compliance
Importers should ensure:
- Correct declaration of country of origin.
- Accurate declaration of country of export.
- Proper tariff classification under 2917 35 00.
- Appropriate calculation of anti-dumping duty at the time of customs clearance.
Legal Basis
The notification has been issued under:
- Section 9A of the Customs Tariff Act, 1975
- Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995
- DGTR Final Findings Notification No. 7/26/2025-DGTR dated 7 May 2026
Conclusion
India has decided to continue anti-dumping protection on imports of Phthalic Anhydride from China and South Korea after determining that the risk of dumping and injury to the domestic industry persists. The renewed duties of USD 40.08 per MT for imports from China and USD 140.17 per MT for imports from South Korea will remain effective for five years, unless modified earlier.
Businesses importing Phthalic Anhydride should review the notification carefully, update their import cost calculations, and ensure full compliance with customs requirements to avoid disputes during clearance.
Notification Reference:
Customs
NOTIFICATION No. 20/2026-Customs (ADD)
05/08/2026