Continuation of Anti-Dumping Duty on Phthalic Anhydride Imports from China PR and Korea RP

The Ministry of Finance has decided to keep anti-dumping duty in force on imports of “Phthalic Anhydride” coming from the People’s Republic of China and the Republic of Korea for another five-year term. This decision follows a sunset review carried out by the Directorate General of Trade Remedies (DGTR), which confirmed that dumping and injury to the Indian domestic industry would likely persist if the duty were withdrawn.

The Central Government has formalized this decision through Notification No. 20/2026-Customs (ADD) dated 5 August 2026, replacing the earlier Notification No. 43/2021-Customs (ADD), while protecting all actions already taken under the earlier notification.

Background of the Anti-Dumping Measure

Origin of the Duty

Anti-dumping duties were originally imposed on Phthalic Anhydride falling under tariff item 2917 35 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported from:

  • People’s Republic of China
  • Republic of Korea
  • Thailand

The aim was to neutralise unfair pricing practices that were injuring Indian producers.

Sunset Review and Final Findings

As per the statutory framework, anti-dumping duties are subject to periodic sunset reviews to determine whether continuation is warranted. The DGTR conducted such a review and issued its final findings via Notification No. 7/26/2025-DGTR dated 7 May 2026, published in the Gazette of India, Extraordinary, Part I, section 1.

Key conclusions of the Designated Authority were:

  • Dumping from People’s Republic of China and Republic of Korea has continued in respect of Phthalic Anhydride under tariff item 2917 35 00.
  • If the existing anti-dumping duty were allowed to expire, there is a likelihood of continuation or recurrence of dumping.
  • Such continued or renewed dumping would also likely result in ongoing or renewed injury to the domestic industry.

Based on these findings, the DGTR formally recommended continuation of anti-dumping duty on the subject goods imported from People’s Republic of China and Republic of Korea.

Statutory Provisions Invoked

The Central Government has acted under the authority of:

  • Section 9A(1) and Section 9A(5) of the Customs Tariff Act, 1975
  • Rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995

These provisions allow the Government to:

  1. Impose anti-dumping duty on dumped imports causing injury.
  2. Determine the period of such duty.
  3. Review and continue the duty where warranted, particularly through sunset review mechanisms.

Supersession of Earlier Notification

The new notification supersedes:

  • Notification No. 43/2021-Customs (ADD) dated 9 August 2021, published as G.S.R. 543(E) in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i).

However, this supersession is prospective, meaning:

All actions, liabilities, or compliance obligations arising prior to the new notification remain valid and unaffected (“except as respects things done or omitted to be done before such supersession”).

Scope of Goods Covered

Description and Tariff Classification

The anti-dumping duty continues to apply to:

  • Goods: “Phthalic Anhydride”
  • Tariff item: 2917 35 00 of the First Schedule to the Customs Tariff Act