CBIC Clarifies ADD Exemption on Titanium Dioxide Imports from China

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Dated: 03.06.2025

CBIC Clarifies ADD Exemption on Titanium Dioxide Imports from China

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 16/2025-Customs dated 11th May 2025, providing clarity on the implementation of Anti-Dumping Duty (ADD) on Titanium Dioxide imported from China PR, in accordance with Notification No. 12/2025-Customs (ADD) dated 10.05.2025.

This circular provides procedural safeguards for importers who utilize Titanium Dioxide in excluded sectors, thereby ensuring a seamless customs clearance process without undue burden of ADD.

Background

India has imposed Anti-Dumping Duty on Titanium Dioxide originating in or exported from China PR. However, to support essential and specialized downstream industries, the government has exempted ADD for specific uses such as:

Food products
Pharmaceuticals
Skin-care
Textiles and fibres
Nano or ultra-fine grade applications

Electronic Declaration Mechanism Introduced

To operationalize this exemption, CBIC has introduced an electronic declaration option at the time of Bill of Entry (BE) filing, allowing importers to self-declare the intended end-use of the product.

Declaration Format (Mandatory for Exemption):

“I/we declare that the goods imported are for use in products of description excluded in terms of Notification No. 12/2025-Customs (ADD) dated 10.05.2025. I/we undertake to pay applicable ADD with interest if the goods are supplied for any other use.”

System-Level Implementation

The Directorate General of Systems (DG Systems) will issue a separate advisory to operationalize the declaration functionality in the EDI system. Field officers are also being instructed to recognize this mechanism and allow expedited clearance for exempted consignments.

Importer’s Responsibility

Importers must ensure accurate declaration at the time of filing BE.
If goods are diverted to ineligible sectors, ADD along with interest will be recoverable.
This mechanism is based on self-certification and post-clearance scrutiny.

Impact on Industry

Positive for MSMEs and Manufacturers in the pharma, food, and personal care sectors, who can now import Titanium Dioxide without additional cost burdens.

Ensures targeted enforcement of ADD, focusing only on mass industrial users outside the exempted list.

Reduces litigation and delays at ports due to lack of clarity or inconsistent officer-level interpretations.

Conclusion

CBIC’s Circular No. 16/2025 brings welcome clarity and digital efficiency to the import clearance process for Titanium Dioxide. Importers operating in exempted sectors should align internal compliance and documentation to benefit from this facilitative measure.

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Source: CBIC, Ministry of Finance, Govt. of India

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