Synthetic Musk from China - DGTR Recommends Anti-Dumping Duty of $3,967 per Metric Tonne (MT) on Sole Producer Keva Fragrances Complaint

[DGFT Preliminary Findings Case No. AD (OI)-13/2026 dated 23.09.2026]

The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce & Industry, has issued preliminary findings recommending a provisional anti-dumping duty of $3,967 per Metric Tonne (MT) on imports of a key synthetic fragrance compound originating in or exported from China PR.

The investigation was triggered by a petition from M/s Keva Fragrances Private Limited, the sole domestic producer of the compound in India. The authority provisionally concluded that the domestic industry has suffered material injury due to Chinese exporters dumping goods into the Indian market at prices significantly below normal value.

Key Investigation Metrics

Parameter	Details
Product Under Consideration (PUC)	1-(3,5,5,6,8,8-hexamethyl-6,7-dihydronaphthalen-2-yl) ethenone (A synthetic polycyclic musk used as a fixative in perfumes, soaps, and detergents).
Common Brand Names	Tonalide, Tonalid, Muscofix, Ganolid, AHTN, Fixolide, Kevolid.
Customs Classification	Chapter 29, Tariff Item 2914 3990.
Period of Investigation (POI)	1 October 2024 – 30 September 2025.
Dumping Margin Range	30% - 40%.
Proposed Duty Amount	$3,967 per MT (Applicable to imports from any Chinese producer).

Core Findings & Industry Impact

· Surge in Imports: Over the injury investigation period, while overall Indian demand for the product grew by 231%, imports from China expanded exponentially by 426%, capturing a major slice of the market despite no domestic supply deficit.

· Severe Financial Injury: Driven by cheap imports undercutting local prices, India's domestic industry faced strict price depression. Keva Fragrances was forced to sell below its cost of production, leading to accumulated inventories, severe cash losses, and negative returns on capital employed.

· Capacity Underutilization: Even though the domestic producer holds enough infrastructure to fulfill 100% of the country’s market demand, 47% of its capacity sat entirely idle during the POI.

· Negligible Public Impact: Because this chemical is used in tiny amounts within fragrance formulations (which themselves make up a minuscule fraction of consumer product costs), the DGTR notes the duty will have a minimal impact on end consumers—amounting to less than 50 paise for final items like soaps or deodorants.

Next Steps in the Procedure

The DGTR will allow interested parties 30 days to submit written comments on these preliminary findings. The Designated Authority will subsequently hold an oral hearing and conduct further field verifications before releasing final determinations.