Published: 21 Jul 2026
CBIC Introduces Provisional Guarantee Requirement for Imports of Insoluble Sulphur from China
The Central Board of Indirect Taxes & Customs (CBIC) has issued Instruction No. 12/2026-Customs dated 3 July 2026, directing customs authorities to obtain a provisional financial guarantee from importers of Insoluble Sulphur originating in or exported from China.
The guarantee is intended to cover a potential increase of approximately USD 170–180 per metric tonne in anti-dumping duty while an ongoing anti-absorption review is completed.
Background
India imposed anti-dumping duties on imports of Insoluble Sulphur from China and Japan in June 2025, with duties ranging from USD 259 to USD 358 per metric tonne, depending on the exporter and country of origin.
In March 2026, the Directorate General of Trade Remedies (DGTR) initiated an anti-absorption review to examine whether Chinese exporters were absorbing the cost of the existing anti-dumping duty instead of passing it on to buyers, thereby reducing the effectiveness of the trade remedy.
Pending the outcome of this investigation, CBIC has instructed customs officers to provisionally assess imports from China and obtain a sufficient guarantee to cover any additional duty that may ultimately be imposed.
What Does This Mean for Importers?
The existing anti-dumping duty continues to apply without any change. However, importers of Insoluble Sulphur from China must now also furnish an additional financial guarantee at the time of customs clearance.
If DGTR concludes that duty absorption has occurred, the guarantee may be adjusted against the enhanced anti-dumping duty. If no additional duty is recommended, the guarantee may be released.
Businesses importing this product should therefore account for this temporary financial obligation in their pricing, procurement, and cash-flow planning.
Why It Matters
Although this is not a final increase in anti-dumping duty, it is an important interim measure designed to safeguard the effectiveness of India’s trade remedies while the investigation is underway.
Importers should closely monitor the progress of the DGTR review, as its final findings will determine whether the provisional guarantee becomes an actual additional duty or is withdrawn.
Official Reference
CBIC Instruction No. 12/2026-Customs
Date: 3 July 2026
File No.: CBIC-190349/18/2025-TRU
Issued pursuant to Notification No. 13/2026-Customs (ADD), with reference to Notification No. 13/2025-Customs (ADD) and DGTR Initiation Notification F. No. 7/03/2026-DGTR dated 20 March 2026.
Source: CBIC Official Website