Govt Imposes Custom Duty on Pigments Imported from China

Govt Imposes Custom Duty on Pigments Imported from China

The Ministry of Finance released an official notification dated June 26, 2025, regarding the matter of the “Effect pearlescent pigments or mica pearlescent pigments, excluding effect pigments for automotive applications.” In accordance with the official notification, the Finance Ministry has announced the imposition of customs duty on Mica Pearlescent Pigments originating in or exported from China PR and imported into India. Customs duty has been placed following an investigation by the Directorate General of Trade Remedies (DGTR).

The designated authority, i.e., DGTR, in its final findings published in the Gazette of India, Extraordinary, Part I, section 1, vide Notification 06/8/2024-DGTR, dated March 28, 2025. Later on, a corrigendum notice dated June 16, 2025, was also published in correction to the previous notice. In reference to both the notices, the authority has come to the conclusion that:

• The subject good, i.e., Mica Pearlescent Pigments, has been exported to India from China at prices lower than its normal value.
• Due to the selling of the subject goods at subsidised prices, the domestic industry has suffered material injury.
• This material injury has been suffered by the Indian manufacturers due to the import of subject goods originating in or exported from the subject country, i.e., China.

Hence, DGTR has suggested that the central government impose countervailing duty on imports of the subject goods originating in or exported from the subject country.

The central government has considered the recommendations of DGTR and has imposed countervailing duty on imports of Mica Pearlescent Pigments in exercise of its powers offered under sub-sections (1) and (6) of section 9 of the Customs Tariff Act read with rules 20 and 22 of the Customs Tariff (Identification, Assessment, and Collection of Countervailing Duty on Subsidised Articles and for Determination of Injury) Rules, 1995. According to the government order, the imposed duty will be imposed on the subject good for the period of five years (unless revoked, replaced, or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.

Refer to the official notification for more related information.