Provisional 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.
Between the start of an investigation and the final finding, rules 12 to 16 govern what happens in the middle. The designated authority may record a preliminary finding (rule 12), the Central Government may impose a provisional duty (rule 13), the investigation must be terminated on certain grounds (rule 14), an exporter may offer a price undertaking (rule 15), and every interested party must be told the essential facts before the final findings (rule 16).
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 records a preliminary finding and issues a public notice (rule 12). The Central Government may then impose a provisional duty not exceeding the margin of dumping, but not before sixty days from the public notice of initiation, and for not more than six months, extendable to nine on request (rule 13). Rule 14 requires termination if, among other grounds, the margin is less than two per cent of the export price. Exporters may offer a price undertaking (rule 15).
Rule 12: preliminary findings
Rule 12(1) says the designated authority proceeds expeditiously and, in appropriate cases, records a preliminary finding on export price, normal value and margin of dumping, and, for imports from specified countries, a further finding on injury to the domestic industry. The finding must be sufficiently detailed and refer to the matters of fact and law behind arguments accepted or rejected. It also contains:
- the names of the suppliers, or the supplying countries where that is impracticable;
- a description of the article sufficient for customs purposes;
- the margins of dumping established, with a full explanation of the methodology for comparing export price and normal value;
- considerations relevant to the injury determination; and
- the main reasons for the determination.
Rule 12(2): the authority issues a public notice recording the preliminary findings. A preliminary finding is not mandatory in every case; the rule says "in appropriate cases".
Rule 13: provisional duty
The Central Government may, on the basis of the preliminary findings, impose a provisional duty not exceeding the margin of dumping. Two provisos set limits:
| Limit | As printed |
|---|---|
| Earliest date | No such duty before the expiry of sixty days from the date of the public notice on the decision to initiate |
| Maximum period | Not exceeding six months; may, on request of exporters representing a significant percentage of the trade, be extended by the Central Government to nine months |
Provisional duty is imposed under section 9A(2) of the Customs Tariff Act, 1975, as rule 2(e) says. No rate appears in the rules; any rate is in the duty notification.
Rule 14: when the authority must terminate
The designated authority must, by public notice, terminate an investigation immediately if:
- (a) it receives a written request from or on behalf of the domestic industry affected, at whose instance the investigation was initiated;
- (b) it is satisfied that there is not sufficient evidence of dumping or, where applicable, injury to justify continuing;
- (c) it determines that the margin of dumping is less than two per cent of the export price;
- (d) it determines that the volume of dumped imports, actual or potential, from a particular country is less than three per cent of imports of the like product, unless countries that individually account for less than three per cent collectively account for more than seven per cent; or
- (e) it determines that the injury, where applicable, is negligible.
Compare the cumulation tests in Annexure II para (iii), covered in our article on Rule 11 and Annexures II and III. The same two, three and seven per cent figures appear in both places.
Rule 15: price undertakings
When an undertaking can be offered (rule 15(1) to (3))
The designated authority may suspend or terminate an investigation if the exporter furnishes a written undertaking to revise prices so that (i) no exports to India are made at dumped prices, or (ii) for imports from specified countries, the injurious effect of dumping is eliminated, and the authority is satisfied it is eliminated. A proviso lets the investigation be completed and a finding recorded if the exporter so desires or the authority so decides.
Under rule 15(2), an undertaking under clause (ii) is accepted only after the authority has made a preliminary determination of dumping and injury. Rule 15(3) lets the authority decline an undertaking if it considers acceptance impractical or unacceptable for any other reason.
After acceptance (rule 15(4) to (7))
- Notice: the authority intimates the Central Government and issues a public notice, containing inter alia the non-confidential part of the undertaking (15(4)).
- Effect on duty: the Central Government may not impose duty under section 9A(2) for as long as the undertaking acceptable to the authority remains valid (15(5)).
- Monitoring: the authority may require information from time to time and permit verification of data (15(6)).
- Violation: a proviso to 15(6), substituted by Notification No. 44/99-Cus. (N.T.) dated 15-7-1999, requires the authority, as soon as possible, to inform the Central Government of a violation and recommend imposition of provisional duty from the date of violation.
- Review: the authority reviews, suo motu or on request of exporters, importers or any other interested party, the need for continuing an undertaking (15(7)).
An example: Orion Chemicals, an exporter, offers to raise its export prices so that the injurious effect of dumping is removed. If the authority has already made a preliminary determination of dumping and injury and finds the offer practical, it may suspend the investigation and the Central Government may refrain from imposing duty while the undertaking remains valid. If Orion later breaks the undertaking, the provisional duty may apply from the date of violation.
Rule 16: disclosure before final findings
Before giving its final findings, the authority must inform all interested parties of the essential facts under consideration which form the basis of its decision. This gives parties a last chance to comment. Confidential material remains protected under rule 7; see our article on Rules 5 to 9.
Practical points
| Stage | What you should do |
|---|---|
| Preliminary finding | Check margins, injury reasoning and article description; prepare comments |
| Provisional duty | Note the sixty-day earliest date and six-month limit when planning landed cost |
| Possible termination | Test the two, three and seven per cent grounds in rule 14 |
| Undertaking | Exporters should weigh rule 15(2)'s preliminary determination condition and the monitoring in 15(6) |
| Disclosure | Respond to the essential facts statement within the time given |
What follows the middle stage is in Rules 17 to 21A. If you want to discuss whether an undertaking suits your business, our legal dispute resolution team can help.
Need help at the preliminary stage?
Timelines in this phase are short and the options are limited. Our legal dispute resolution team can help you test a preliminary finding, argue for termination under rule 14, or draft and negotiate a price undertaking under rule 15.
Key takeaways
- A preliminary finding on dumping and injury is recorded "in appropriate cases", with a public notice.
- Provisional duty cannot exceed the margin of dumping, cannot start before sixty days from the initiation notice, and lasts up to six months, extendable to nine.
- Termination is mandatory on the rule 14 grounds, including a margin below two per cent of export price.
- A price undertaking can suspend or terminate an investigation and stops section 9A(2) duty while it is valid.
- Violation of an undertaking can lead to provisional duty from the date of violation.
- Interested parties must be told the essential facts before final findings.
Read next
- Rule 11 and Annexures II and III: injury and non-injurious price
- Rules 17-21A: final findings, levy, commencement and refund
- Anti-dumping duty levy and process
- Types of customs duty: BCD, IGST, safeguard, anti-dumping
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.