The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, has initiated an anti-dumping investigation into the alleged dumping of Phthalic Anhydride (PAN) imported from Taiwan following complaints from domestic manufacturers.

The investigation was formally launched through a notification dated March 11, 2026, under the provisions of the Customs Tariff Act, 1975 and the Anti-Dumping Rules, 1995.

Complaint by Domestic Industry

The investigation was initiated based on an application filed by IG Petrochemicals Limited (IGPL), Thirumalai Chemical Industries Limited (TCL), and TCL Intermediates Private Limited (TCLIPL). These companies alleged that imports of Phthalic Anhydride from Taiwan were being dumped into the Indian market at unfairly low prices, causing material injury to domestic producers.

DGTR noted that the applicant companies constitute the domestic industry for the purpose of the investigation and that they neither import the product from Taiwan nor have any relationship with exporters or importers associated with the product.

Product Under Consideration

The product under investigation is Phthalic Anhydride (PAN), an organic chemical compound that serves as a major commercial derivative of phthalic acid. It is widely used as an intermediate in several industrial applications, including:

• Plasticizers
• Polyester resins
• Alkyd resins used in paints and lacquers
• Polyester polyols
• Dyes and pigments

The product is generally classified under Chapter 29 of the Customs Tariff Act, typically imported under tariff item 29173500. However, DGTR clarified that tariff classification is only indicative and does not determine the scope of the product under investigation.

Period of Investigation

The period of investigation (POI) has been set from October 1, 2024, to September 30, 2025, covering a period of 12 months.

For injury analysis, DGTR will examine data for the financial years:

• 2022–23
• 2023–24
• 2024–25
• The POI period

This assessment will help determine whether the domestic industry has suffered material injury due to imports.

Basis of Dumping Allegations

According to the domestic producers, information on the domestic selling price of Phthalic Anhydride in Taiwan was not available in the public domain. Therefore, the normal value of the product was estimated based on the cost of production with reasonable additions for administrative, selling, and profit margins.

The export price was determined using CIF price data reported in the DG System, after making adjustments for freight, insurance, handling charges, port expenses, commissions, credit costs, and bank charges.

Based on the comparison between the estimated normal value and export price, the authority observed that the dumping margin appeared to be above the de minimis level, indicating a prima facie case of dumping by exporters from Taiwan.

Alleged Injury to Domestic Industry

The applicants submitted evidence suggesting that dumped imports from Taiwan have caused significant injury to the domestic industry. Preliminary findings indicate:

• Increase in import volumes from Taiwan in both absolute and relative terms
• Evidence of price undercutting and price depression due to imports
• Decline in production and sales of domestic producers
• Reduced capacity utilization and presence of idle capacities
• Sharp increase in inventories held by domestic manufacturers
• Decline in domestic market share while imports gained share
• Adverse impact on profitability of the domestic industry

These factors suggest a causal link between the dumped imports and the injury suffered by domestic producers.

Investigation Procedure and Timeline

DGTR has initiated the investigation to determine:

• Whether dumping has occurred
• The extent of dumping
• The injury caused to domestic industry
• The appropriate level of anti-dumping duty required to remedy the injury

Interested parties, including exporters, importers, and users of the product, have been asked to register on the DGTR’s SETU portal and submit relevant information and questionnaire responses within 37 days of the circulation of the non-confidential version of the application.

Notification Details

Case No. AD(OI) – 04/2026

Date: 11/03/2026

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