CVD Rule 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.
Rules 19 to 23 take a countervailing duty case from final findings to levy, start date and refund. Rule 23A, the newest provision, was added in July 2024. It gives exporters or producers who did not export during the period of investigation, and who are not related to those paying duty, a periodical review to fix their own subsidy margin.
This article reads the rules as amended up to Notification No. 51/2024-Customs (N.T.) dated 23 July 2024 (rule 23A, in force 24 July 2024). Later notifications should be checked before you rely on the current text.
The designated authority gives its final finding within one year of initiation (extendable by the Central Government by six months in circumstances of exceptional nature). The Government may levy duty within three months of publication, not exceeding the subsidy and, for specified countries, not more than needed to remove injury. If final duty is lower than provisional duty collected, the difference is refunded. Rule 23A lets exporters not originally investigated seek an individual subsidy margin; no duty is levied on them during the review, but the Government may use provisional assessment and a guarantee.
Rule 19: final findings
Within one year of initiation, the designated authority determines whether the article is being subsidised and submits its final finding on: (a)(i) the nature and quantum of the subsidy; (ii) for specified countries, whether imports cause or threaten material injury or materially retard an industry, with the causal link; and (iii) whether a retrospective levy is called for, with reasons and date of commencement; and (b) its recommendation on the amount of duty which, if levied, would be adequate to remove the injury to the domestic industry.
Two provisos: the Central Government may in circumstances of exceptional nature extend the year by six months; and where an investigation was suspended on a rule 17 undertaking and resumed on violation, the suspended period is not counted.
An affirmative finding contains all information on facts, law and reasons, including supplier names, a product description sufficient for customs purposes, the amount of subsidy and the basis for its existence, injury considerations and the main reasons (19(2)). A public notice records it (19(3)).
Rule 20: levy
| Sub-rule | Provision |
|---|---|
| 20(1) | Within three months of publication of final findings, the Central Government may impose, by Gazette notification, countervailing duty not exceeding the subsidy determined under rule 19. For specified countries, the duty must not exceed the amount found adequate to remove the injury |
| 20(2) | Where domestic industry was read under the rule 2(b) proviso, duty is levied only after exporters have been given opportunity to cease subsidised exports to the area or give a rule 17 undertaking, and duty cannot be levied only on products of specified producers supplying the area |
| 20(3) | If the final finding is negative, the Government must within forty five days of publication withdraw any provisional duty |
Rule 21: non-discrimination
Duty under rule 15 or 20 applies on a non-discriminatory basis to all imports of the article found subsidised and, where applicable, causing injury, except imports from sources from which a rule 17 undertaking has been accepted.
Rule 22: when duty starts
22(1): duty under rules 15 and 20 takes effect from publication of the notification in the Official Gazette.
22(2): despite that, (a) where provisional duty was levied and the authority recorded a finding of injury, or of threat of injury plus a finding that subsidised imports without provisional duty would have led to injury, duty may be imposed from the date of imposition of provisional duty; and (b) in the circumstances in section 9(4) of the Customs Tariff Act, duty may be levied retrospectively from a date ninety days before provisional duty. A proviso bars retrospective duty on imports entered for home consumption before violation of an undertaking, and a further proviso (inserted by Notification No. 10/2020-Cus. (N.T.)) deems provisional duty levied from the date of violation or a date the Government specifies.
Rule 23: refunds
- 23(1): final duty higher than provisional duty collected: the differential is not collected.
- 23(2): final duty lower: the differential is refunded to the importer.
- 23(3): provisional duty withdrawn under rule 20(3): the provisional duty collected is refunded.
Compare the anti-dumping position in Rules 17 to 21A. The CVD rules have no counterpart to anti-dumping rule 21A (the importer's application on the actual margin).
Rule 23A: subsidy margin for exporters not originally investigated
Rule 23A was inserted by Notification No. 51/2024-Customs (N.T.) dated 23 July 2024, with effect from 24 July 2024. It has three sub-rules.
23A(1): the review
If a product is subject to countervailing duties, the designated authority carries out a periodical review to determine individual subsidy margins for any exporters or producers in the exporting country who have not exported the product to India during the period of investigation, provided they show they are not related to any exporter or producer there who is subject to the duty.
23A(2): no duty during the review
The Central Government shall not levy countervailing duties under section 9(1) of the Customs Tariff Act on imports from such exporters or producers during the review period. The proviso lets the Government resort to provisional assessment and ask a guarantee from the importer if the designated authority so recommends, and if the review results in a determination of subsidy, it may levy duty retrospectively from the date of initiation of the review.
23A(3): extending a rate
The countervailing duty already imposed for co-operative un-sampled exporters or producers may also be extended to exporters or producers who were not originally investigated.
| Feature | Rule 23A |
|---|---|
| Who | Exporters or producers who did not export to India during the period of investigation and are not related to those subject to duty |
| Duty during review | None under section 9(1) |
| Security | Provisional assessment and a guarantee from the importer, if the authority recommends |
| Retrospective levy | From initiation of the review, if subsidy is found |
| Rate extension | May extend the rate for co-operative un-sampled exporters (23A(3)) |
An example: Zenith Textiles Pvt Ltd in an exporting country began shipping to India after the original period of investigation. It is unrelated to the exporters paying duty. It asks the designated authority for a review. During the review the importer may be asked for a guarantee while goods are provisionally assessed. If the authority finds a subsidy margin, duty can run from the date the review began. If the authority does not find subsidy, no duty is due. The guarantee and the retrospective levy make early advice important.
The parallel anti-dumping provision is rule 22, covered in our article on Rules 22 to 24. For the earlier stage of a CVD case, see Rules 14 to 18; for the five-year review and circumvention, see Rules 24 to 31. If a rule 23A review concerns you, our legal dispute resolution team can advise.
Need help with a levy, refund or rule 23A review?
Importers who bought from a newly exporting supplier face real cash-flow questions under rule 23A, and everyone is working to the clocks in rules 19 and 20. Our legal dispute resolution team can help with the review request, the guarantee and any refund claim under rule 23.
Key takeaways
- Final finding within one year of initiation, extendable by six months in circumstances of exceptional nature.
- Levy within three months of publication, capped at the subsidy and, for specified countries, the amount needed to remove injury.
- Negative final finding means provisional duty is withdrawn within forty five days.
- Refunds: differential refunded where final duty is lower; not collected where higher.
- Rule 23A (from 24 July 2024) gives unrelated exporters who did not export in the period of investigation a review for their own margin.
- During a rule 23A review, no duty under section 9(1), but provisional assessment, a guarantee and retrospective levy from initiation are possible.
Read next
- Rules 14-18: preliminary findings, provisional duty, undertakings and disclosure
- Rules 24-31: review, circumvention and anti-absorption
- Anti-dumping rules 22-24: new shipper and sunset review
- Safeguard and countervailing duty explained
Disclaimer: Based on the Customs Tariff Act rules named above as published on the CBIC Tax Information Portal or in the Gazette, with the 2024 amendment to the countervailing duty rules read through a TaxClue consolidated reading text (no official consolidated text exists), 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.