HomeNotificationIndia Imposes 5-Year Countervailing Duty on Chinese Effect Pearlescent Pigments

India Imposes 5-Year Countervailing Duty on Chinese Effect Pearlescent Pigments

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The Ministry of Finance has imposed a definitive countervailing duty (CVD) on imports of effect pearlescent pigments or mica pearlescent pigments, excluding those used in automotive applications, originating in or exported from China PR.

This move aims to protect India’s domestic pigment industry from the adverse impact of subsidized imports from China. The duty will remain in force for a period of five years, unless revoked or amended earlier.

The decision was notified following the final investigation conducted by the Directorate General of Trade Remedies (DGTR). The DGTR concluded that Chinese exporters were supplying the subject goods to India at subsidized rates, resulting in material injury to the Indian domestic industry. The authority confirmed that the injury was a direct result of such subsidized imports and recommended the imposition of countervailing duties.

Accordingly, the Government of India has levied duties ranging from 11.18% to 25.76% on CIF (Cost, Insurance, and Freight) value, depending on the exporter. Specific Chinese manufacturers have been identified with varying duty rates: Rika Technology Co. Ltd. (14.49%), Henan Lingbao New Materials Technology Co. Ltd. (16.74%), Zhejiang Coloray Technology Development Co. Ltd. (14.63%), and Jiangsu Pritty New Material Co. Ltd. (11.18%). A higher rate of 25.76% has been imposed on all other Chinese producers and also on goods exported from China but originating in other countries.

Companies and Duty Rates

The duty rates vary by manufacturer:

 

Sr. No.

Chinese Producer

Duty (% of CIF)

1.

Rika Technology Co. Ltd.

14.49%

2.

Henan Lingbao New Materials Technology Co. Ltd.

16.74%

3.

Zhejiang Coloray Technology Development Co. Ltd.

14.63%

4.

Jiangsu Pritty New Material Co. Ltd.

11.18%

5.

Other Chinese producers

25.76%

6.

Products exported from China PR, but originating elsewhere

25.76%

The duty applies to goods exported from any country, if the origin is China PR.

The notification clarifiesd the applicability of the duty. For industrial and cosmetic applications involving natural-grade pigments, the full countervailing duty will apply as specified. However, no CVD will be imposed on pigments meant for automotive applications. Additionally, for synthetic-grade pigments, where no anti-dumping duty exists, the countervailing duty will be levied as per the rates specified in the duty table.

Notification Details

Notification No. 04/2025-Customs (CVD)

Date: 26th June, 2025

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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