CBIC Orders Provisional Assessment and Guarantee on
Malaysian Imports of Hydraulic Rock Breakers and Chisel Tools to Counter
Anti-Dumping Circumvention
·
China –
4.55% to 162.50%
·
Korea –
8.16% to 52.77%
[Notification
No. 11/2024-Customs (ADD) dated 27 June, 2024]
The Ministry of Finance (Department of Revenue)
has issued Instruction No. 22/2026-Customs and Notification No.
27/2026-Customs (ADD) ordering the provisional assessment and collection
of guarantees on imports of "Alloy Steel Chisel/tool and Hydraulic
Rock Breaker in fully assembled condition" (including seven specific
sub-assemblies/components) exported from Malaysia. This measure follows
an anti-circumvention investigation initiated by the Designated Authority on
September 28, 2026, which revealed prima
facie evidence that anti-dumping duties originally imposed on these
products from China PR and Korea RP were being circumvented via Malaysia.
Key Takeaways:
·
Scope of Products: Fully
assembled Alloy Steel Chisels/tools, Hydraulic Rock Breakers, and seven major
components: Front head, Back head, Piston, Cylinder body/hydraulic unit,
Bracket, Frame, and Cylinder.
·
Guarantee Rates: To safeguard revenue pending the
investigation's outcome, importers must furnish guarantees applied on the CIF
(Cost, Insurance, and Freight) value at the following rates against
provisional assessment:
o
Hydraulic Rock Breaker (Fully Assembled): 162.50%
of CIF value
o
Alloy Steel Chisel/tool: 29.21%
of CIF value
·
Continuity of Prior Duties: Existing
anti-dumping duties levied under Notification No. 11/2024-Customs (ADD)
remain active and will continue to be collected where applicable.
[Instruction No. 22/2026-Customs dated 6 November,
2026]
Subject: Provisional
assessment and furnishing of guarantee in respect of imports of “Alloy Steel Chisel/tool
and Hydraulic Rock Breaker in fully assembled condition” exported from
Malaysia.
Reference
is invited to notification No.
27/2026-Customs (ADD), dated the 05th November 2026, issued by the Central
Government under section 9A(1A) of the Customs Tariff Act, 1975, read with
sub-rule (4A) of rule 26 of the Customs Tariff (Identification, Assessment and
Collection of Anti-Dumping Duty on Dumped Articles and for Determination of
Injury) Rules, 1995 (hereinafter referred to as the said rules).
2.
Notification No. 11/2024-Customs (ADD), dated the 27th June, 2024, published
vide number 349(E), in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), dated the 27th June, 2024, imposed
anti-dumping duty on imports of “Alloy Steel Chisel/tool and Hydraulic Rock
Breaker in fully assembled condition”, originating in or exported from China PR
and Korea RP. Subsequently, the Designated Authority, vide initiation
notification F. No. 07/20/2026- DGTR,
dated the 28th September, 2026, has initiated an anti-circumvention
investigation concerning alleged country-based circumvention through Malaysia.
The product under investigation is “Alloy Steel Chisel/tool and Hydraulic Rock
Breaker in fully assembled condition” and includes following seven assemblies/sub-assemblies/components
of hydraulic rock breakers:
a)
Front
head;
b)
Back
head;
c)
Piston
for hydraulic cylinder or rock breaker;
d)
Cylinder body or hydraulic
unit (Hydraulic body
consists of front
head, back head, cylinder and piston);
e)
Bracket;
f)
Frame;
g)
Cylinder
for hydraulic rock breaker.
3.
Pending the outcome of the said investigation, and in terms of notification No.
27/2026- Customs (ADD), dated the 05th November, 2026, imports of the product
under investigation exported from Malaysia are to be subjected to provisional
assessment till a decision under sub- rule (3) of rule 27 of the said rules is
taken by the Central Government.
4.
In this regard, the proper officer may, in respect of imports of the product
under investigation exported
from Malaysia, obtain
sufficient guarantee at the rates
specified below from
the importers at the following rates, applied on the CIF value of the
imports against provisional assessment:
|
Sl.No. |
Product under investigation |
Rate for guarantee |
|
1. |
Hydraulic Rock Breaker in fully
assembled condition |
162.50% of CIF value |
|
2. |
Alloy Steel Chisel/tool |
29.21% of CIF value |
5.
The above rates are for quantifying the guarantee against anti-dumping duty, if
any, that may become payable pursuant to the decision of the Central Government
under sub-rule (3) of rule 27 of the said rules.
6.
The existing anti-dumping duty under notification No. 11/2024-Customs (ADD),
dated the 27th June, 2024, wherever applicable, shall continue to be levied and
collected in accordance with the provisions of the said notification.
7.
Field formations are requested to sensitise 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.
F.
No. CBIC-190354/160/2023-TO(TRU-I)