DGTR Recommends Anti-dumping Duty of 44.90% Continuation for Five More Years on 'Arylides' from China in Sunset Review

Ø Indian Prices are 20% higher than China with Sole Manufacturer of the colouring Material Laxmi Organic Complaining of injury

Ø Anti-dumping Duty on Pigment Chemical Aceto Acetyl Derivatives (Arylides) from China Extended by Three More Months to 13 January, 2027 as Pending Review by CBIC Notification No. 17/2026-Customs (ADD) dated 10 July, 2026

Ø Notification No. 60/2021 -Customs (ADD) dated 14 October 2021 to Expire on 13 October, 2026 - Extended by Three More Months to 13 January, 2027

[DGTR Notification Final Findings Case No. AD(SSR) 01/2026 dated 12.10.2026]

The Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce & Industry, Government of India, has issued its final findings in the sunset review investigation concerning the imports of Aceto Acetyl Derivatives of Aromatic or Heterocyclic Compounds, commonly known as 'Arylides', originating in or exported from China PR.

The key details of the investigation and findings are outlined below:

· Background & Timeline: The original anti-dumping duty was imposed on October 14, 2021, for a period of five years. Following an application from the sole Indian producer, M/s Laxmi Organic Industries Limited, the DGTR initiated a sunset review on March 19, 2026, to examine whether the expiry of the duty would lead to a continuation or recurrence of dumping and material injury to the domestic industry.

· Period of Investigation (POI): The POI for the investigation was set from 1st October 2024 to 30th September 2025 (12 months), with the injury analysis covering the trends from 2022 to the POI.

· Product Scope: The product under consideration covers specific forms of arylides, including AAA, AAMX, AAOA, AAOT, and AAOCA, which are primarily used as intermediates to manufacture yellow, orange, and red pigments, as well as in the agrochemical sector.

· Dumping Margins: The investigation confirmed that Chinese producers continue to export the subject goods at dumped prices. The determined dumping margin ranges are 10%–20% for Nantong Acetic Acid Chemical Co Ltd, 50%–60% for Qingdao Haiwan Specialty Chemicals Co Ltd, and 80%–90% for all other Chinese exporters.

· Injury & Likelihood Assessment: The DGTR concluded that despite the duties being in force, imports from China remain significant, accounting for about 40% of the Indian demand. Landed values undercut domestic pricing, forcing the Indian industry into price suppression and depression. While volume parameters showed slight historical improvements, the domestic industry suffered financial losses, cash losses, and a negative return on investment (ROI) during the POI.

· Unutilized Chinese Capacity: The two participating Chinese exporters were found to hold massive collective idle capacity equivalent to 130%–140% of the entire Indian demand. This poses an imminent threat of flooding the Indian market if the duties are revoked.

· Conclusion: The Authority concluded that there is sufficient evidence of a strong likelihood of continued dumping and injury to the domestic industry if the anti-dumping measures are allowed to expire. The impact of these duties on the downstream pigment and consumer industries was assessed to be negligible.