Sunset Review Initiated on Imports of Methyl Acetoacetate from China; Risk of Dumping and Injury to Domestic Industry

The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, has initiated a sunset review investigation concerning the imports of Methyl Acetoacetate (MAA) from China PR. The review follows a request filed by domestic producer Laxmi Organic Industries Ltd, supported by another domestic manufacturer, Jubilant Ingrevia Ltd.

The move comes ahead of the expiry of the existing anti-dumping duties imposed on imports of MAA, which are set to lapse on May 28, 2026. According to the Customs Tariff Act, 1975 and related rules, such duties expire after five years unless reviewed and extended. The DGTR has now begun this review to determine whether the removal of the duties would likely result in continued or renewed dumping and injury to the domestic industry.

Background

Anti-dumping duties on MAA from China and the USA were first imposed in May 2016, following findings of injurious dumping. A first sunset review was carried out in 2021, which led to an extension of the duties against China PR for another five years.

Methyl Acetoacetate, a diketene-based ester with the chemical formula C₅H₈O₃, is widely used in pharmaceuticals, agrochemicals, and dyes. The DGTR has reiterated that the domestically produced MAA is identical in specifications, functions, and uses to the imported versions, qualifying it as a "like article" for the purpose of anti-dumping law.

Evidence of Continued Dumping and Injury

The petition submitted by Laxmi Organics claims that:

Imports from China have continued at dumped and injurious prices;

The dumping margin remains significant, above the legally acceptable threshold;

There is surplus capacity in China, and;

The Indian industry continues to face price suppression and undercutting.

The authority also observed that if duties are lifted, injury to the domestic industry is likely to persist or recur, based on prima facie evidence.

Review Scope and Procedure

The review will cover the period of investigation (POI) from January 2024 to December 2024, while examining injury from April 2021 to March 2024. The subject country is limited to China PR, consistent with earlier findings.

All stakeholders — including exporters, importers, and governments — have been invited to submit relevant information. Submissions are to be made electronically within 30 days, and both confidential and non-confidential versions must be filed as per established procedure.

Notification Details

Case No AD (SSR – 06/2025)

Date: 26th June, 2025