Provisional Assessment with $180/MT Guarantee, Anti Absorption Review Show that Exporter has Export Price to Nullify Duty of Insoluble Sulphur Imports from China

·         Reference Notification: The instruction refers to Notification No. 13/2026-Customs (ADD) dated 3 July 2026, issued under Rule 30(5) of the Anti-Dumping Rules, 1995.

·         Background: Notification No. 13/2025-Customs (ADD) dated 6 June 2025 had imposed anti-dumping duty (ADD) on imports of Insoluble Sulphur originating in or exported from China and Japan.

·         Anti-Absorption Review Initiated: The Directorate General of Trade Remedies (DGTR) initiated an anti-absorption review investigation on 20 March 2026 for imports of Insoluble Sulphur originating in or exported from China.

·         Provisional Assessment Ordered: Pending completion of the review, all imports of Insoluble Sulphur from China that are subject to ADD under Notification No. 13/2025-Customs (ADD) shall be assessed provisionally until the Central Government takes a final decision under Rule 31(3) of the Anti-Dumping Rules.

·         Likely Increase in ADD: The Designated Authority has indicated that a prima facie increase of approximately USD 170–180 per metric tonne (MT) over the existing anti-dumping duty may be warranted.

·         Guarantee Requirement: Customs officers should obtain a sufficient guarantee from importers to cover the potential increase in anti-dumping duty (around USD 170–180/MT) during provisional assessment.

·         Existing ADD Continues: The guarantee is in addition to the anti-dumping duty already payable under Notification No. 13/2025-Customs (ADD), which will continue to be levied and collected as usual.

·         Instructions to Field Formations: Customs field formations have been directed to sensitize officers about these instructions and ensure strict compliance.

Key Takeaway

Imports of Insoluble Sulphur from China will now be subject to provisional assessment, with importers required to furnish an additional guarantee to cover a possible USD 170–180/MT increase in anti-dumping duty while the anti-absorption review is underway.

 

[CBIC Instruction No. 12/2026-Customs dated 3 July, 2026]

Subject: Provisional assessment and furnishing of guarantee in respect of imports of “Insoluble Sulphur” originating in or exported from People’s Republic of China.

Reference is invited to notification No. 13/2026-Customs (ADD), dated 3rd July, 2026 issued by the Central Government in accordance with sub-rule (5) of rule 30 of the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.

2. Notification No. 13/2025-Customs (ADD), dated the 06th June, 2025, published vide number G.S.R. 372(E), in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 06th June, 2025, imposed anti-dumping duty on imports of “Insoluble Sulphur”, originating in or exported from People’s Republic of China and Japan. Subsequently, the Designated Authority, vide initiation notification F. No. 7/03/2026-DGTR dated the 20th March, 2026, has initiated an anti-absorption review investigation in respect of imports of the said goods originating in or exported from People’s Republic of China.

3. Pending the outcome of the said investigation, and in terms of notification No. 13/2026- Customs (ADD), dated 3rd July, 2026, imports of the subject goods originating in or exported from People’s Republic of China and attracting anti-dumping duty under notification No. 13/2025-Customs (ADD), dated the 06th June, 2025, are to be subjected to provisional assessment till a decision under sub-rule (3) of rule 31 of the said Rules is taken by the Central Government.

4. In this regard, it has been informed by the Designated Authority that prima facie an estimated increase of around USD 170-180 MT over the existing anti-dumping duty may be warranted in this case.

5. Accordingly, the proper officer may in respect of imports of “Insoluble Sulphur” originating in or exported from People’s Republic of China, obtain sufficient guarantee to cover any increase in the anti-dumping duty as suggested by the Designated Authority above.

6. The said guarantee shall be in addition to the anti-dumping duty imposed vide notification No. 13/2025-Customs (ADD), dated the 06th June, 2025, which shall continue to be levied and collected in accordance with the provisions of the said notification.

7. Field formations are requested to sensitize officers under their jurisdiction regarding the above and ensure strict compliance.

8. The difficulties, if any, may be brought to the notice of the Board.

Encl: as above

F. No. CBIC-190349/18/2025-TRU