Published: 30 Sep 2026
India Renews Anti-Dumping Duty on Phthalic Anhydride from China and Korea; Thailand Not Covered
Omega QMS Compliance Insights
Omega QMS
The Government of India has imposed a fresh five-year anti-dumping duty on imports of Phthalic Anhydride originating in or exported from China PR and the Republic of Korea, following a sunset review conducted by the Directorate General of Trade Remedies (DGTR).
The new duty has been imposed through Notification No. 20/2026-Customs (ADD), dated 5 August 2026, following DGTR’s Final Findings dated 7 May 2026. The notification supersedes the earlier Notification No. 43/2021-Customs (ADD), dated 9 August 2021.
Although the sunset review covered China PR, Korea RP and Thailand, the operative duty notification imposes duty only on China PR and Korea RP. Thailand is not included in the duty table.
What Is Phthalic Anhydride?
Phthalic Anhydride is an important industrial chemical used as a raw material in several downstream products. Its major applications include:
- Plasticizers used to make PVC and other plastics flexible
- Unsaturated polyester resins
- Alkyd resins used in paints and coatings
- Dyes and related chemical products
Changes in its import cost can therefore affect downstream manufacturers, particularly in plasticizers, resins, paints, coatings and related industries.
Background of the Anti-Dumping Duty
India previously imposed anti-dumping duty on Phthalic Anhydride through Notification No. 43/2021-Customs (ADD), dated 9 August 2021. As the five-year measure approached its end, DGTR conducted a sunset review covering imports from the People’s Republic of China, the Republic of Korea and Thailand.
In its Final Findings dated 7 May 2026, DGTR concluded that dumping from China PR and Korea RP had continued, and that cessation of the duty was likely to result in continuation or recurrence of dumping and injury to the domestic industry. It recommended continued duty on imports from China PR and Korea RP.
What Has Changed Under the 2026 Notification?
The Central Government has implemented the recommended measure through Notification No. 20/2026-Customs (ADD), dated 5 August 2026.
| Particular | 2026 Position |
|---|---|
| Product | Phthalic Anhydride |
| Tariff Item | 2917 35 00 |
| China PR | USD 40.08 per MT |
| Republic of Korea | USD 140.17 per MT |
| Thailand | Not covered by the operative duty table |
| Duration | 5 years |
| Effective from | 5 August 2026 |
| Previous notification | Notification No. 43/2021-Customs (ADD) |
| Status | Fresh definitive anti-dumping duty |
Anti-Dumping Duty Rates on Phthalic Anhydride
USD 40.08 per MT
Applies to covered China-origin goods irrespective of whether they are exported directly from China or through another country, as specified in the duty table.
USD 140.17 per MT
Substantially higher than the China PR rate. The notification also provides the applicable rate where goods are exported through other countries in the circumstances specified in the duty table.
What About Thailand?
The sunset review considered imports from China PR, Korea RP and Thailand. However, the final Customs notification does not impose anti-dumping duty on Thailand-origin Phthalic Anhydride.
Under Notification No. 20/2026-Customs (ADD), the operative duty applies only to China PR (USD 40.08/MT) and Korea RP (USD 140.17/MT). The countries considered in the DGTR review and those covered by the Customs notification are not identical, and that distinction matters.
The 2026 Notification Supersedes the 2021 Duty
This is not merely an administrative extension. Notification No. 20/2026-Customs (ADD) is issued in supersession of Notification No. 43/2021-Customs (ADD), dated 9 August 2021, except in respect of things already done or omitted before such supersession.
Importers should refer to the new 2026 notification for applicable rates and conditions, rather than continuing to rely on the superseded 2021 notification.
Duration of the Anti-Dumping Duty
The duty remains effective for five years from 5 August 2026, unless revoked, superseded or amended earlier. It is payable in Indian currency, with the applicable exchange rate determined in accordance with the relevant Customs provisions.
Who Will Be Affected?
The renewed duty is particularly relevant to:
- Importers of Phthalic Anhydride from China PR
- Importers sourcing from Korea RP
- Plasticizer manufacturers
- PVC and PVC-related manufacturers
- Unsaturated polyester resin manufacturers
- Paint and coating manufacturers
- Chemical and dye manufacturers
- Procurement and supply-chain teams
- Customs and trade compliance teams
Businesses importing from China or Korea should factor the applicable duty into landed-cost calculations and import planning.
Impact on Downstream Industries
Phthalic Anhydride is an important input for several industries. Businesses sourcing from China and Korea will continue to face an additional import cost, and the differential rates are relevant to sourcing decisions.
| Origin | Anti-Dumping Duty |
|---|---|
| China PR | USD 40.08/MT |
| Korea RP | USD 140.17/MT |
| Thailand | No duty under this notification |
Businesses evaluating alternative sources should assess the complete commercial and regulatory position, including product specifications, origin documentation, customs classification and applicable import requirements.
Customs and Compliance Considerations
Importers should review their import documentation and customs processes. Key areas to check:
Correct Tariff Classification
The notification covers Phthalic Anhydride under tariff item 2917 35 00. Ensure the product is correctly classified and the anti-dumping duty is considered.
Country of Origin
The duty depends on the country of origin and, under the notification, the export route. Maintain documentation supporting the declared origin.
Landed Cost Calculations
Update calculations for Basic Customs Duty (where applicable), anti-dumping duty, IGST and other levies, freight and insurance, and other import costs.
Existing Import Contracts
Review whether the renewed duty affects contractual pricing, landed costs and commercial arrangements under ongoing or long-term contracts.
Key Takeaways
India has imposed a new anti-dumping duty on Phthalic Anhydride imports from China PR and Korea RP.
USD 40.08 per MT for China PR and USD 140.17 per MT for Korea RP.
Thailand was covered in the sunset review but is not in the operative duty table of the new notification.
Notification No. 20/2026-Customs (ADD) replaces Notification No. 43/2021-Customs (ADD).
The duty runs from 5 August 2026, unless revoked, superseded or amended earlier.
Importers should update customs, procurement and landed-cost processes to reflect the new measure.
How Omega QMS Can Help
Anti-dumping duties can directly affect import costs, sourcing decisions and customs compliance. Businesses importing Phthalic Anhydride or other products under trade-remedy measures should ensure the applicable notification, tariff classification, country of origin and duty requirements are correctly assessed.
Omega QMS provides regulatory and trade-remedy support to businesses dealing with India’s evolving import and compliance requirements. Our services include:
- Anti-dumping duty applicability assessment
- Customs and tariff classification support
- Country-of-origin and import documentation review
- Trade-remedy regulatory analysis
- Import compliance and documentation
- DGTR-related regulatory matters
- Monitoring of anti-dumping and other trade-remedy measures
Importing Phthalic Anhydride from China or Korea?
Need help assessing the impact of the renewed anti-dumping duty on your imports?
Primary Source: Ministry of Finance, Department of Revenue, Government of India — Notification No. 20/2026-Customs (ADD), dated 5 August 2026, imposing anti-dumping duty on Phthalic Anhydride originating in or exported from China PR and the Republic of Korea and superseding Notification No. 43/2021-Customs (ADD).
The notification records that DGTR’s Final Findings dated 7 May 2026 recommended continued anti-dumping duty on imports from China PR and Korea RP following the sunset review.
Disclaimer: This article is for general regulatory and informational purposes only and should not be treated as legal advice. Businesses should review the applicable notification and their specific import transactions before making compliance or commercial decisions.
