Anti-Dumping Duty explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Anti-dumping duty is a duty on goods exported to India at a price below their normal value, and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 lay down how an investigation is started, how the margin and the injury are determined, and how duty is levied, refunded and reviewed. This guide follows the process in order and shows where the amount comes from. If duty affects your imports and you need to respond to a notice or a review, our legal dispute resolution service can help. The duty is imposed under section 9A of the Customs Tariff Act, 1975, and the rules govern how it is identified, assessed and collected.
This article reads the rules as amended up to the CBIC text dated 1 February 2021 (no amending notification found in CBIC's 2023-2026 lists; 2021-2022 not re-checked). Later notifications should be checked before you rely on the current text.
The designated authority finds whether the article is dumped (exported below normal value) and, for specified countries, whether it causes or threatens material injury; the Central Government may then levy duty not exceeding the margin of dumping, within three months of the final findings (rules 10, 11, 17 and 18). The rules print no duty rate: the rate is in the duty notification. A provisional duty may be imposed earlier, and a definitive duty lasts not more than five years unless a review shows that expiry would lead to continued or recurring dumping and injury (rule 23).
Step 1: who investigates and on what application
Rule 3 lets the Central Government appoint a designated authority, and rule 4 lists its duties, including investigating dumping, reporting findings and recommending duty. Rule 5 says an investigation starts on a written application by or on behalf of the domestic industry, or on the authority's own motion. It is not initiated if supporting producers account for less than twenty five per cent of total production of the like article; the application is treated as made on behalf of the industry if supported by producers whose output is more than fifty per cent of the production of the part of the industry expressing support or opposition. See Rules 1 to 4 and Rules 5 to 9. Interested parties, including importers, are given time to respond to information notices, and confidential information is protected.
Step 2: dumping and the margin (rule 10 and Annexure I)
An article is dumped if it is exported to India at a price less than its normal value. The authority determines normal value, export price and the margin of dumping, taking into account Annexure I. In outline, costs normally come from the exporter's or producer's own records if they follow the generally accepted accounting principles of the exporting country, sales below cost may be disregarded in the circumstances the Annexure prints, and the comparison between normal value and export price is made at the same level of trade. The detailed paragraphs, including those for non-market economy countries, are in Rule 10 and Annexure I.
Step 3: injury and the non-injurious price (rule 11 and Annexures II and III)
Dumping alone does not lead to duty. For imports from specified countries the authority records a finding that the imports cause or threaten material injury, or materially retard the establishment of an industry, examining the volume of dumped imports, their effect on domestic prices and the impact on producers. Annexure III is used for the amount of duty that would remove the injury. See Rule 11 and Annexures II and III.
Step 4: preliminary findings and provisional duty (rules 12 to 16)
| Point | What the rules say |
|---|---|
| Preliminary finding | Recorded in appropriate cases and notified publicly (rule 12) |
| Provisional duty | May be imposed by the Central Government, not exceeding the margin of dumping, not before sixty days from the public notice of initiation, and for not more than six months, extendable to nine on request (rule 13) |
| Termination | Required if, among other grounds, the margin is less than two per cent of the export price, or the import volume from a country is below three per cent of imports of the like product, with the aggregate exception printed in rule 14 |
| Price undertaking | An exporter may offer one under rule 15 |
| Disclosure | Essential facts are disclosed to interested parties before final findings (rule 16) |
The articles on Rules 12 to 16 give each rule in full.
Step 5: final findings and levy (rules 17 to 21A)
Within one year of initiation the designated authority submits its final finding on export price, normal value, margin of dumping, injury and causal link, and the amount of duty that would remove the injury. The Central Government may extend the year by six months in special circumstances. It may then, within three months of publication of the final findings, levy duty by Gazette notification, not exceeding the margin of dumping determined (rule 18(1)). Duty applies without discrimination to all sources found dumping, except those whose undertaking is accepted (rule 19), and takes effect from the date of Gazette publication, with the limited earlier dates in rule 20, including a period of ninety days before provisional duty in the circumstances of section 9A(3).
Step 6: how the amount works
The rules give two limits and no formula for the rate: the duty may not exceed the margin of dumping (rules 13 and 18), and the authority recommends the amount that would remove the injury after considering Annexure III (rule 17(1)(b)). The rate itself is in the Gazette notification. A simple illustration of the first limit, with invented numbers only: if the margin found is a stated amount per tonne, the notified duty on that article cannot be higher than that amount. Where provisional duty was collected, rule 21 says that if the final duty is higher the difference is not collected, and if it is lower the difference is refunded to the importer. Rule 21A also lets an importer who believes it paid more than the actual margin of dumping apply to the designated authority, which may recommend a refund of the difference within nine months and in no case more than twelve months of a complete application.
Step 7: new shippers, five-year limit and review (rules 22 to 24)
An exporter that did not export to India during the period of investigation and is not related to those subject to duty can ask for a review of an individual margin (rule 22). A definitive duty is effective for not more than five years from imposition, unless a review initiated before that period ends concludes that expiry is likely to lead to continuation or recurrence of dumping and injury (rule 23(1B)). A review must be concluded within twelve months and at least three months before expiry (rule 23(2)). Rule 24 allows an investigation of dumping into India that injures a third WTO member's industry. See Rules 22 to 24 and, for avoidance of duty by changes in trade patterns, Rules 25 to 28 on circumvention. The general overview is in Anti-Dumping Duty: Levy and Process.
A worked example
Delta Polymers Limited (invented) imports a chemical from an exporter named in a duty notification. In the year the notification was issued, the importer's customs file shows provisional duty collected earlier. The final notification sets a lower duty. Under rule 21(2) the difference is refunded to the importer; had the final duty been higher, rule 21(1) says the extra would not be collected. Separately, the importer notes the date of imposition so that it does not assume duty beyond five years, and watches for a review notice in the last year.
Common mistakes
- Looking for the duty rate in the rules; the rules print none and the notification carries it.
- Assuming provisional duty can start immediately; it cannot start before sixty days from the public notice of initiation.
- Forgetting that the final duty can differ from the provisional duty and that rule 21 handles the difference.
- Missing a review that continues a duty beyond five years.
- Ignoring a notice from the designated authority because the importer is not the exporter; importers are interested parties under rule 2(c).
- Treating an alleged circumvention as outside the rules; rules 25 to 28 cover it.
Need help with anti-dumping duty?
We can read the duty notification for your goods, prepare a response to the designated authority's questionnaire, or plan a refund application under rule 21A, through our legal dispute resolution service.
Key takeaways
- Dumping means export below normal value; injury is also needed for specified countries.
- Duty may not exceed the margin of dumping; the rate is in the notification.
- Final findings come within one year of initiation, and levy within three months of the findings.
- Provisional duty is trued up under rule 21, and rule 21A offers a refund route.
- A definitive duty lasts up to five years unless a review concludes otherwise.
Read next
- Anti-Dumping Duty: Levy and Process
- Rules 12 to 16: preliminary findings and provisional duty
- Rules 17 to 21A: final findings, levy and refund
- Safeguard and Countervailing Duty Explained
Disclaimer: Based on the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 as printed by CBIC (text dated 1 February 2021). Later amendments and duty notifications should be checked. This article is general information, not legal advice; check the official text before acting.