Rules 24 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.
Once countervailing duty is in force, rules 24 to 31 govern its life and its defences. Rule 24 provides for review and the five-year limit; rules 25 to 28 deal with circumvention (a change of trade pattern that defeats the duty) and its review; rules 29 to 31 add an anti-absorption review for cases where exporters cut their prices after duty and the resale price in India stays flat.
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.
A definitive countervailing duty is effective for not more than five years unless a review initiated before expiry concludes that expiry is likely to lead to continued or recurring subsidisation and injury. Reviews are concluded within twelve months and at least three months before expiry. Circumvention includes assembly where the value consequent to assembly is less than thirty-five percent of the cost of the complete article. Anti-absorption applications are normally filed within two years of the definitive duty.
Rule 24: review and the five-year limit
Rule 24 was substituted by Notification No. 10/2020-Cus. (N.T.) dated 2-2-2020.
| Sub-rule | Provision |
|---|---|
| 24(1) | Duty remains in force so long as and to the extent necessary to counteract subsidisation which is causing injury |
| 24(2) | The authority reviews the need for continued imposition, where warranted, on its own initiative or on request of an interested party who submits necessary information substantiating the need, after a reasonable period since the definitive duty. It recommends withdrawal if injury is not likely to continue or recur if the duty is removed or varied |
| 24(3) | A definitive duty is effective for a period not exceeding five years from imposition. On a review initiated before that period, on its own initiative or on a duly substantiated request by or on behalf of the domestic industry within a reasonable period before expiry, the authority may, if it concludes that expiry is likely to lead to continuation or recurrence of subsidisation and injury, recommend extending the period in accordance with section 9 of the Act |
| 24(4) | A review under sub-rule (1) is concluded within twelve months of initiation. A proviso (inserted with effect from 1-7-2021 by Notification No. 11/2021-Cus. (N.T.)) requires completion at least three months before expiry, notwithstanding rule 19 |
| 24(5) | Rules 7, 8, 9, 10, 11, 12, 13, 18, 19, 20, 21 and 22 apply mutatis mutandis to a review, subject to sub-rule (4) |
Compare the anti-dumping version in our article on Rules 22 to 24. The CVD rule 24 has one set of sub-rules where the anti-dumping rule 23 has (1), (1A) and (1B). Rule 24(4) refers to a review "under sub-rule (1)".
Rule 25: circumvention of countervailing duties
The definition (25(1))
Circumvention is a change in the pattern of trade between individual companies in any other country subject to measures and India, as a result of a practice, process or work for which there is insufficient cause or economic justification other than the imposition of the duty, where there is evidence of injury or that the remedial effects of the duty are being undermined in prices or quantities or both, and that the imported like product or parts of it still benefit from the subsidy as determined in the original or previous determination.
The practices (25(2))
| Clause | Practice | Test as printed |
|---|---|---|
| (a) | Unassembled, unfinished or incomplete articles imported and assembled, finished or completed in India or another country | Operation started or increased after, or just prior to, the investigation and parts from the notified country; and the value consequent to the operation is less than thirty-five percent of the cost of the assembled, finished or complete article |
| (b) | Alteration of description, name or composition | Even minor alteration in form or appearance, regardless of tariff classification |
| (c) | Exports through an exporter, producer or country not subject to duty | Notified exporters change trade practice, pattern of trade or channels of sales |
| (d) | Any other manner | Whereby the duty is rendered ineffective |
Explanation I: "value" means the cost of the assembled, complete or finished article less the value of imported parts or components. Explanation II: payments relating to intellectual property rights, royalty, technical know-how fees and consultancy charges are not taken into account. In the anti-dumping version the test is value addition of less than 35% of manufacturing cost, while here it is value as a share of the cost of the complete article; the wording differs, so do not swap them.
Rule 26: starting a circumvention investigation
- 26(1) and (2): on written application by or on behalf of the domestic industry, with sufficient evidence of the circumstances.
- 26(3): on its own initiative if satisfied from Commissioner of Customs information or any other source.
- 26(4): the authority may initiate; proviso: it notifies the government of the exporting country first.
- 26(4A): inserted with effect from 2-2-2021 by Notification No. 11/2021: provisional assessment and a guarantee from the importer until the Government decides under rule 27(3).
- 26(5): rule 7 evidence and procedure applies mutatis mutandis.
- 26(6): concluded within twelve months, and in no case more than eighteen months, for reasons recorded in writing.
Rule 27: determination
If circumvention exists, the authority may recommend extending the existing duty to the circumventing imports or to imports from countries other than those notified, with retrospective effect from the date of initiation under rule 26 (27(1)); issues a public notice (27(2)); and the Central Government may extend the duty, including from initiation or a date the authority recommends (27(3)).
Rule 28: review of circumvention
The authority may, where warranted, review the need for continued duty on the circumventing product or against the circumventing country, on its own initiative or on request after a reasonable period, and make recommendations to the Government (28(1)). The review is concluded within twelve months, and, by a proviso inserted with effect from 1-7-2021, at least three months before expiry of the duty under review (28(2)).
Rules 29 to 31: anti-absorption
Rules 29 to 31 were inserted by Notification No. 83/2021-Customs (N.T.) dated 27-10-2021. They are not in the anti-dumping rules.
Rule 29: what absorption is and when to apply
Duty may be considered absorbed where export prices decrease after imposition without any significant change in the resale price of the article in India. Where duty is rendered or may be rendered ineffective, the authority may, after a review, recommend modification in the form, basis or quantum of the duty, or both, after reassessing the subsidy and injury margins, with appropriate changes in accordance with rule 12. Applications are filed by the domestic industry or any other interested party normally within two years of definitive duty (29(3)). Provisos: for special circumstances, with reasons in writing, a later application may be accepted; and no application is accepted where less than twelve months remain for the duty to expire.
Rule 30: the investigation
| Sub-rule | Provision |
|---|---|
| 30(1) and (2) | On written application by the domestic industry or any other interested party, with sufficient evidence |
| 30(3) | Suo motu on information from the Principal Commissioner or Commissioner of Customs or any other source |
| 30(4) | Proviso: notify the exporting country's government before initiating |
| 30(5) | Provisional assessment and a guarantee from the importer, until a decision under rule 27(3) |
| 30(6) | Rule 7 procedure applies; the review is limited to re-computation of subsidy and injury margin because existence of injury and causality was already determined |
| 30(7) | Concluded within six months of initiation; the Government may, in special circumstances with reasons recorded in writing, extend by another three months |
Rule 31: determination of absorption
The authority may recommend modifying the form, basis or quantum of the duty for articles found to be absorbing it, with effect retrospectively from the date of initiation (31(1)); issues a public notice (31(2)); and the Central Government may modify the duty from the date of initiation or a date recommended (31(3)). Rule 31 is printed with a reference to initiation "under rule 26", although absorption investigations start under rule 30; the rule is read as printed.
An example: after a countervailing duty is imposed on a steel product, exports to India drop in price but resale prices in India barely change. The domestic producer files an anti-absorption application within the two-year window of rule 29(3). The authority's inquiry under rule 30 is limited to recomputing the subsidy and injury margins and must finish within six months, extendable by three.
For the earlier part of the CVD process, see Rules 19 to 23A. The anti-dumping circumvention rules are in Rules 25 to 28. Our legal dispute resolution team can help with a circumvention or anti-absorption application or defence.
Need help with review, circumvention or absorption?
These proceedings are time-limited and evidence-heavy. Our legal dispute resolution team can help producers time a rule 24 or rule 29 application and help importers defend against extension, retroactive duty or guarantee demands.
Key takeaways
- Definitive countervailing duty lasts up to five years unless a review concludes it should continue.
- Reviews finish within twelve months and at least three months before expiry.
- Circumvention covers assembly (value less than thirty-five percent of the cost of the complete article), altered products, routing through others and other devices.
- A circumvention investigation runs up to twelve months, in no case more than eighteen.
- Anti-absorption applications are normally filed within two years, and not with less than twelve months of duty left.
- Anti-absorption investigations take six months, extendable by three, and only recompute margins.
Read next
- Rules 19-23A: final findings, levy, refund and new shipper review
- Anti-dumping rules 25-28: circumvention investigation and review
- 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.