The Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry has initiated an anti-circumvention investigation into imports of saccharin allegedly routed through Thailand to evade existing countervailing duties imposed on Chinese imports of the artificial sweetener.
The investigation follows an application filed by domestic manufacturers Swati Petro Products Ltd. and Blue Jet Healthcare Ltd., who alleged that saccharin originating in China is being exported via Thailand to bypass duties imposed on Chinese shipments. The DGTR has found prima facie evidence indicating a shift in trade patterns and has formally launched the probe under the Customs Tariff Act, 1975 and the Countervailing Duty Rules, 1995.
According to the notification, countervailing duties on saccharin imports from China were continued following a sunset review completed in November 2024, and were implemented through a Finance Ministry notification dated February 25, 2025. However, domestic producers claim that imports from Thailand surged after the imposition of duties on China and the cessation of earlier anti-circumvention measures on Thailand, suggesting an attempt to avoid the levy.
Saccharin, a low-calorie non-nutritive sweetener used widely in food and beverages, pharmaceuticals, personal care products and electroplating applications, is classified under HS Code 29251100 of the Customs Tariff Act. The current investigation covers saccharin in all forms, including soluble and insoluble varieties such as sodium saccharin and saccharin acid.
The applicants have alleged that saccharin exported from Thailand is not manufactured there but is of Chinese origin and merely routed through Thailand by traders to avoid the payment of countervailing duty. They further contended that Thailand lacks genuine manufacturing facilities for the product and that the landed price of imports from Thailand is lower than both Chinese imports and the domestic industry’s selling price, resulting in price undercutting and increased market share of such imports.
Based on the evidence submitted, the DGTR noted a significant rise in imports of saccharin from Thailand during 2024-25 and the proposed period of investigation without adequate economic justification, which may undermine the remedial effect of the duties imposed on China. Accordingly, the authority has initiated the investigation to examine whether the existing countervailing duty should be extended to saccharin imports from Thailand.
The period of investigation has been set from April 2025 to September 2025, while the injury assessment will examine the period from 2022-23 through the investigation period. Interested parties have been directed to submit their responses and relevant information through the DGTR’s SETU portal within 37 days of the circulation of the non-confidential version of the application.
The domestic industry has also requested the retrospective imposition of duties on imports routed through Thailand and provisional assessment of imports during the course of the investigation. The DGTR will evaluate these requests while conducting the probe.
If the allegations are substantiated, the investigation could result in the extension of existing countervailing duties on Chinese saccharin to imports routed through Thailand to prevent duty evasion and protect domestic producers.
Notification Details
Case No. CVD(AC)- 01/2026
Date: 10/03/2026
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