DGTR Issues Final Findings of Anti-absorption Duty on Untreated Fumed Silica from China – No Changes in Duty

·         Anti-Dumping Duty on Untreated Fumed Silica from China (US$1296 per MT) and Korea (US$ 373 per MT) for Five Years - Complainant Cabot Sanmar by Notification No. 66 /2021 -Customs (ADD) dated 11 November 2021

Summary – DGTR Final Findings (11 August 2025)

Case No.: AD (AA) – 02/2023
Product: Untreated Fumed Silica
Subject Country: China PR
Subject Exporter: Shandong Dongyue Silicone Material Co. Ltd.
Applicant: Chemplast Sanmar Limited

Background

·         Anti-dumping duty on Untreated Fumed Silica from China & Korea was imposed in Nov 2021 (valid for 5 years).

·         Applicant alleged that the Chinese exporter absorbed the duty by lowering export prices, undermining the remedial effect.

·         DGTR initiated an anti-absorption investigation (Dec 2024), covering July 2023 – June 2024.

Key Findings

1.    Export price decline:

o    Export price to India fell 30.5%, while cost of sales fell only 22.7%.

o    Price decline to India was steeper than to other countries (24.1%).

2.    Cost trends:

o    Raw material & utility costs increased, but export prices to India declined.

o    Exporter did not qualify for Market Economy Treatment, so cost data not fully accepted.

3.    Dumping Margin:

o    Rose from 52% (original) to 109% (absorption period).

4.    Injury Margin:

o    Increased significantly, as landed price fell by ~25%.

5.    Absorption established:

o    DGTR concluded that Shandong Dongyue Silicone Material Co. Ltd. absorbed the anti-dumping duty.

Decision / Recommendation

·         Modification of anti-dumping duty on imports from Shandong Dongyue Silicone Material Co. Ltd., China.

·         Duty will be revised upward in line with the higher dumping & injury margins.

·         Duties on other exporters (China PR & Korea RP) remain as imposed in 2021.

·         Modified duties to continue for 5 years from Notification No. 66/2021-Customs (11 Nov 2021).

Next Steps

·         Appeals, if any, lie before CESTAT.

Essence: The DGTR found that the Chinese exporter deliberately reduced export prices to offset anti-dumping duties, thereby neutralising the protective effect for Indian industry. Hence, anti-dumping duties on this exporter will be increased/modified.

[DGTR Final Finding Case No. AD (AA) – 02/2023 dated 11 August, 2025]