Anti Dumping Duty in India: Rules, Calculation & Current Orders

Anti dumping duty is a customs duty India imposes on imported goods sold below their normal value (fair market price) in the exporting country, where this pricing causes or threatens injury to domestic manufacturers. It is levied under Section 9A of the Customs Tariff Act, 1975, and investigated by the Directorate General of Trade Remedies (DGTR). As of 2025-26, India has over 300 active anti dumping orders covering products from steel and chemicals to textiles and solar panel components.

What is anti dumping duty and why does India impose it?

When a foreign manufacturer sells goods in India at a price lower than what they charge in their own home market, that is dumping. Anti dumping duty exists to offset this price difference and protect Indian manufacturers from unfair competition.

The legal framework rests on Section 9A of the Customs Tariff Act, 1975, which gives the central government the power to impose anti dumping duty. The investigation procedure is governed by the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. Internationally, India follows Article VI of GATT 1994 and the WTO Anti-Dumping Agreement.

For anti dumping duty to be imposed, three conditions must all be met: the goods are being dumped, a domestic industry producing similar goods is suffering material injury, and there is a direct causal link between the dumping and the injury.

Safeguard duty is a different instrument: it applies when fairly-priced imports surge and injure domestic industry. Countervailing duty is also distinct, targeting government-subsidized exports rather than below-market pricing by manufacturers. If you are calculating the total duty burden on an import, the import duty calculator guide covers how anti dumping duty fits into the overall customs duty structure.

How is anti dumping duty calculated in India?

The calculation starts with two numbers: the normal value and the export price.

Normal value is what the product sells for in the exporter's home market under ordinary commercial conditions. If home market sales are insufficient (less than 5% of exports to India) or unreliable, DGTR uses either a third-country price or a constructed value (cost of production + selling/administrative expenses + a reasonable profit margin).

Export price is the price at which the goods are sold to India. If the sale is between related parties, DGTR may reconstruct the export price using the first resale to an independent buyer, minus costs between import and resale.

Dumping margin = Normal value minus Export price.

DGTR compares these on an ex-factory basis, adjusting for differences in quantities, physical characteristics, taxation, and conditions of sale. Packing, credit terms, transport, warranty terms: all of these can move the final number.

India follows the lesser duty rule, which is where its approach differs from countries like the US or EU. The duty imposed is the lower of the dumping margin or the injury margin.

The injury margin is how much the price needs to rise for domestic industry to earn a reasonable return. So if the dumping margin is 25% but the injury margin is 18%, the anti dumping duty will be 18%.

The duty itself can take three forms:

• Ad valorem: a percentage of the assessed value (e.g., 15%)
• Specific: a fixed amount per unit (e.g., USD 120 per metric tonne)
• Reference price: any import below a set reference price pays the difference as duty

Worked example: A Chinese manufacturer sells PET resin at USD 700/MT to India. The normal value in China is USD 900/MT. The dumping margin is USD 200/MT. If the injury margin calculation shows Indian producers need a price of USD 850/MT to be viable, the injury margin is USD 150/MT. Under the lesser duty rule, the anti dumping duty would be USD 150/MT, not USD 200/MT.

For a broader understanding of how customs duties are structured, the step-by-step customs duty calculation guide breaks down BCD, IGST, and other components.

What is the DGTR investigation process?

An anti dumping investigation in India follows a defined timeline, from complaint to final notification.

Step 1: Application. Domestic producers file a petition with DGTR. The applicants must account for more than 25% of total domestic production of the like product. If multiple producers apply together, they must collectively represent over 50% of total domestic production. This threshold is based on production volume, not market share, per Rule 5(3) of the Anti-Dumping Rules, 1995.

Step 2: Initiation. DGTR examines the application and decides whether to initiate an investigation within 45 days. If the evidence of dumping, injury, and causal link is sufficient, a public notice of initiation is published.

Step 3: Provisional duty. Between 60 and 200 days after initiation, DGTR may recommend provisional anti dumping duty if a preliminary determination finds dumping is occurring. Provisional duty can last up to 6 months.

Step 4: Questionnaires and verification. DGTR sends questionnaires to foreign producers, exporters, and Indian importers. Responses are verified through on-site visits to the foreign producer's facilities and review of the domestic industry's books.

Step 5: Public hearing. Importers, exporters, domestic producers, and industrial users of the product all get to present arguments.

Step 6: Final determination. DGTR issues final findings within 12 months of initiation (extendable to 18 months). The findings include the dumping margin and injury margin for each exporter/country.

Step 7: Notification. Based on DGTR's recommendation, the Ministry of Finance issues a customs notification imposing the definitive anti dumping duty. This duty applies for up to 5 years.

Sunset review: Before the 5-year period expires, domestic industry can request a review. If DGTR finds that lifting the duty would likely cause dumping and injury to recur, the duty gets extended for another 5 years.

This process directly affects your bill of entry. Once an anti dumping duty notification is issued, it must be declared and paid at the time of customs clearance, in addition to regular BCD and IGST.

Which products currently have anti dumping duty in India?

India is one of the most active users of anti dumping measures globally. As of March 2026, here are some of the active and recently initiated cases according to DGTR records:

Active and recently initiated anti dumping cases in India (as of March 2026, source: DGTR)

China is the target country in over 60% of India's active anti dumping orders. Chemicals and steel products together account for the bulk of cases. The solar energy sector is a newer but growing category, with aluminium frames for solar panels being a recent addition.

For importers dealing with steel products, anti dumping duties on Chinese steel have been a recurring fixture for years. Getting the HS classification right is the first step, because the anti dumping notification is tied to specific tariff headings.

To check whether your product has an active anti dumping order, search the DGTR case database at dgtr.gov.in and cross-reference with CBIC customs notifications. The customs clearance procedure guide explains how anti dumping duties are assessed during import clearance.

How can importers challenge or get exemption from anti dumping duty?

Anti dumping duty is not always the last word. There are several routes available to importers and exporters.

New shipper review. If a foreign exporter did not export the product to India during the original investigation period, they can request a new shipper review to get their own individual duty rate (which could be zero).

Mid-term review. Any interested party can request a review of the duty if circumstances have changed materially since the original investigation. Changed exchange rates, shifts in raw material costs, or new production capacity can all be grounds for a mid-term review.

Anti-circumvention investigation. If exports are being rerouted through a third country to avoid the duty, DGTR can extend the duty to cover the third country too. This cuts both ways: importers may face duties they did not expect if DGTR finds circumvention.

Appeal to CESTAT. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) hears appeals against anti dumping duty orders. Importers can challenge the duty on procedural or substantive grounds.

SEZ and EOU exemptions. Units in Special Economic Zones (SEZs) and 100% Export Oriented Units (EOUs) may be exempt from anti dumping duty on inputs used for export production, depending on the specific notification terms.

End-use exemptions. In some cases, the government grants end-use based exemptions where the imported product is used as a raw material for manufacturing in India, and no adequate domestic substitute exists.

Frequently asked questions

What is the difference between anti dumping duty and countervailing duty?

Anti dumping duty targets foreign producers who sell goods in India below their home market price. Countervailing duty targets situations where the exporting country's government provides subsidies to its producers, giving them an unfair price advantage. Both are WTO-compliant trade remedies, but they address different types of unfair trade practices. A single product can face both duties simultaneously if both dumping and subsidization are proven.

How long does anti dumping duty last in India?

Anti dumping duty is initially imposed for up to 5 years from the date of the final customs notification. It can be extended for another 5 years through a sunset review if DGTR finds that removing the duty would likely lead to dumping and injury recurring. Provisional duty imposed during the investigation period lasts up to 6 months.

Can importers claim a refund of anti dumping duty?

Generally, no. Anti dumping duty is not refundable under duty drawback or other export incentive schemes. However, if provisional duty was imposed and the final determination results in a lower rate or no duty, the excess amount paid is refunded. SEZ units and 100% EOUs may also get exemptions on anti dumping duty on inputs used for export production.

How does DGTR calculate the dumping margin?

DGTR calculates the dumping margin as the difference between the normal value (price in the exporter's home market or constructed value) and the export price to India. Both prices are compared on an ex-factory basis, with adjustments for differences in quantities, physical characteristics, taxation, and selling conditions. Under India's lesser duty rule, the duty imposed is the lower of the dumping margin or the injury margin.

Which countries face the most anti dumping duties from India?

China is the most frequent target of India's anti dumping investigations by a wide margin. As of 2025-26, over 60% of India's active anti dumping orders involve Chinese imports. Other frequently targeted origins include the European Union, South Korea, Thailand, and Malaysia. Products covered range from steel and chemicals to textiles and electronics components.

Before importing any product, check whether its HS code carries an active anti dumping order. Missing this step can add anywhere from 5% to over 50% to your landed cost, and it only shows up when the bill of entry is assessed at the port. Eximoz flags active anti dumping duties automatically during shipment planning, matching your HS classification against current DGTR notifications so you know the full landed cost before the goods ship. Check it out at eximoz.com.