Injury and 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.
Dumping alone does not lead to duty. The designated authority must also find injury to the domestic industry, caused by the dumped imports. Rule 11 sets the requirement, Annexure II lists the principles for finding injury and the causal link, and Annexure III sets out how the non-injurious price is worked out, the price that decides how much duty is enough to remove the injury.
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.
Under rule 11, the designated authority records a finding that imports from specified countries cause or threaten material injury, or materially retard the establishment of an industry. Annexure II requires an objective examination of volume, price effects and impact on producers, and a cumulative assessment only where the printed margin and volume tests are met. Annexure III builds the non-injurious price from the domestic industry's cost of production plus a reasonable pre-tax return on capital employed.
Rule 11: the injury finding
Rule 11(1): for imports from specified countries, the designated authority records a further finding that the import of the article into India causes or threatens material injury to any established industry in India, or materially retards the establishment of any industry in India.
Rule 11(2): it determines injury to the domestic industry, threat of injury, material retardation and the causal link between dumped imports and injury, taking into account all relevant facts, including the volume of dumped imports, their effect on prices in the domestic market for like articles and the consequent effect on domestic producers, and in accordance with the principles in Annexure II.
Rule 11(3): in exceptional cases, the authority may give a finding of injury even where a substantial portion of the domestic industry is not injured, if (i) there is a concentration of dumped imports into an isolated market, and (ii) the dumped articles are causing injury to the producers of all or almost all of the production within that market. This links to the proviso in rule 2(b); see our article on Rules 1 to 4.
Annexure II is headed "" and refers in para (ii) to "sub-rule (2) of rule 18", and Annexure III is headed ""; the rules that actually deal with injury and duty are rules 11 and 17, as the article tracks them.
Annexure II: principles for determining injury
The authority takes these principles into account, inter alia.
| Para | Principle |
|---|---|
| (i) | Objective examination of (a) volume of dumped imports and their effect on domestic prices for the like article, and (b) the consequent impact on domestic producers |
| (ii) | Volume: whether a significant increase, in absolute terms or relative to production or consumption in India. Price: whether significant undercutting, price depression or suppression of price increases to a significant degree |
| (iii) | Cumulative assessment when imports come from more than one country at the same time |
| (iv) | Impact on the domestic industry: all relevant economic factors and indices |
| (v) | Causal link, and non-attribution of injury caused by other factors |
| (vi) | Assessment against domestic production of the like article, or the narrowest group of products that includes it |
| (vii) | Threat of material injury must rest on facts, with foreseen and imminent change in circumstances |
Cumulative assessment (para (iii))
Where imports of a product from more than one country are simultaneously investigated, the authority assesses their effects cumulatively only when it determines that:
- (a) the margin of dumping for each country is more than two per cent expressed as a percentage of export price, and the volume of imports from each country is three per cent of the import of the like article (or, where individual countries fall below three per cent, collectively they account for more than seven per cent of imports of the like article); and
- (b) cumulative assessment is appropriate in light of the conditions of competition between the imported products and between those products and the like domestic products.
Para (iii) was substituted by Notification No. 9/2020-Cus. (N.T.) dated 2-2-2020, as the footnote shows.
Impact on the industry (para (iv))
The evaluation covers all relevant economic factors and indices, including natural and potential decline in sales, profits, output, market share, productivity, return on investments or utilisation of capacity; factors affecting domestic prices; the magnitude of the margin of dumping; and actual and potential negative effects on cash flow, inventories, employment, wages, growth and ability to raise capital investments.
Causal link and other factors (para (v))
It must be demonstrated that the dumped imports are causing injury through their effects. The authority must also examine any known factor other than dumped imports injuring the industry at the same time, and the injury caused by those factors must not be attributed to the dumped imports. Factors that may be relevant include the volume and prices of imports not sold at dumping prices, contraction in demand or changes in consumption patterns, trade restrictive practices of and competition between foreign and domestic producers, developments in technology, and the export performance and productivity of the domestic industry.
Threat of injury (para (vii))
A threat finding must be based on facts and not on allegation, conjecture or remote possibility; the change in circumstances must be clearly foreseen and imminent. Factors include a significant rate of increase of dumped imports; sufficient disposable or imminently and substantially increasing exporter capacity, taking into account other export markets; imports entering at prices that will significantly depress or suppress domestic prices and likely increase demand for further imports; and inventories of the article.
Annexure III: the non-injurious price
Under Annexure III, para (1), the authority must recommend an amount of duty which, if levied, would remove the injury, where applicable. Para (2): it determines the selling (notional) price or non-injurious price of the like domestic product on the principles in the annexure. Para (3): this uses cost of production data for the period of investigation for the producers constituting the domestic industry, with detailed analysis and reconciliation of financial and cost records. The heading appears twice in the printed text; the content is the same.
Para (4) lists the cost elements examined:
| Item | What is examined |
|---|---|
| (i) to (iii) | Optimal utilisation of raw materials, utilities and production capacities over the past three years and the period of investigation, at period-of-investigation rates, so inefficiency is not charged to the dumped imports |
| (iv) | Propriety of expenses; no extraordinary or non-recurring expenses; salary and wages per employee per month reconciled |
| (v) | Depreciation: no charge for facilities not deployed on the subject goods; re-valued assets identified and excluded |
| (vi) | Direct allocation of expenses identified to the product; common overheads apportioned on a reasonable and scientific basis, consistently applied |
| (vii) | Excluded: research and development provisions (unless product-specific and substantiated), post-manufacturing expenses (commission, discount, outward freight), excise duty, sales tax and other levies on sales, job work for other units, royalty (unless tied to technical know-how for the product), trading activity, other non-cost items (bad debts, donations, loss on sale of assets, loss from fire or flood) |
| (viii) | Reasonable pre-tax return on average capital employed (net fixed assets plus net working capital, averaged between the start and end of the period of investigation); revaluation of fixed assets ignored; interest is a cost and the balance of the return is the pre-tax profit |
| (ix) | Reasonableness of interest cost, with loan and borrowing details |
| (x) | With more than one domestic producer, a weighted average of individual non-injurious prices, weighted by share of domestic production |
An example
Delta Alloys, an Indian producer, claims a non-injurious price based on its books. The authority reviews three years of raw material use and period-of-investigation rates. It strips out a one-time factory fire loss and outward freight (para (4)(vii)(b) and (g)), then adds a reasonable pre-tax return on average capital employed under (viii). If two other producers form the industry, the authority takes a weighted average under (x). Your legal consultation adviser can help you organise cost data in this form.
The method links to the dumping margin in Rule 10 and Annexure I: the recommended duty is the margin of dumping or less, if lower duty removes the injury. Next in the sequence, Rules 12 to 16 cover preliminary findings and provisional duty. For countervailing duty, see our article on injury under the CVD rules.
Need help with an injury or price case?
Injury submissions and cost-of-production workings are where many cases are won or lost. Our legal consultation team can help domestic producers build the data and help importers test the other-factors argument under Annexure II para (v).
Key takeaways
- Injury covers material injury, threat of injury and material retardation, with a causal link to dumped imports.
- Cumulation needs the margin, volume and competition tests in Annexure II para (iii) to be met.
- Injury caused by other known factors must not be attributed to dumped imports.
- A threat finding needs facts and an imminent, clearly foreseen change.
- The non-injurious price is built from the industry's cost of production plus a reasonable pre-tax return.
- Annexure III lists costs that are excluded, such as outward freight and unrelated losses.
Read next
- Rule 10 and Annexure I: normal value, export price and margin of dumping
- Rules 12-16: preliminary findings, provisional duty and price undertakings
- Countervailing duty: determining injury
- Anti-dumping duty levy and process
Disclaimer: Based on the Customs Tariff Act rules named above as published on the CBIC Tax Information Portal or in the Gazette, as consulted on 3 October 2026. Later notifications, duty notifications and the Customs Tariff Act, 1975 should be checked. This article is general information, not legal advice; check the official text before acting.