CBIC Imposes Countervailing Duty on Imports of Pearlescent Pigments from China

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Dated: 28.06.2025

CBIC Imposes Countervailing Duty on Imports of Pearlescent Pigments from China

The Government of India, through Notification No. 04/2025-Customs (CVD) dated 26th June 2025, has imposed definitive countervailing duty (CVD) on imports of effect pearlescent pigments or mica pearlescent pigments (excluding those for automotive applications) originating from China PR.

This measure follows the final findings of the Directorate General of Trade Remedies (DGTR) published under Notification No. 06/8/2024-DGTR, establishing that the subject goods were subsidized and caused material injury to the Indian industry.

Key Highlights of the Notification

Subject Goods

Effect pearlescent pigments and mica pearlescent pigments
Classified under tariff items:
3206 11 10, 3206 11 90, 3206 19 00, 3206 49 90
Excludes pigments for automotive applications

Findings of DGTR

Subsidization: Goods from China PR were found to be exported at subsidized prices.
Material Injury: Subsidized imports led to injury to the domestic industry.
Causal Link: Injury was directly linked to the subsidized imports from China.

Structure of Countervailing Duty

S. No.	Producer (China PR)	CVD (% of CIF Value)
1	M/s Rika Technology Co. Ltd.	14.49%
2	M/s Henan Lingbao New Materials Technology Co. Ltd	16.74%
3	M/s Zhejiang Coloray Technology Development Co. Ltd	14.63%
4	M/s Jiangsu Pritty New Material Co. Ltd.	11.18%
5	All other producers from China PR	25.76%
6	China PR (via any third country) – all producers	25.76%

Special Conditions for Application

Industrial Applications (Natural Grade): CVD = (CVD Rate – ADD rate from Notification No. 13/2023-Cus (ADD))
Cosmetic Applications (Natural Grade): Full CVD applies as no ADD exists
Automotive Applications: No CVD applicable
Synthetic Grade: Full CVD applies

Duration of Duty

Valid for five years from the date of publication (26 June 2025)
Payable in Indian Rupees, based on the exchange rate applicable on the date of Bill of Entry filing

Implications for Stakeholders

For Domestic Industry:

Ensures a level playing field by countering unfair price advantage due to foreign subsidies.
Boosts local manufacturing viability of pigment products.

For Importers & Distributors:

Must reassess cost structures and re-evaluate sourcing from China.
Review HS codes and applications to determine CVD applicability.

For Legal & Compliance Teams:

Ensure accurate classification under Customs Tariff and proper documentation of end-use.
Consider potential for product-specific exemption applications or mid-term review.

Conclusion

The imposition of countervailing duty on pearlescent pigment imports marks a firm stance by the Indian government to protect domestic industries from injurious subsidized imports. Stakeholders involved in trade of pigments for industrial and cosmetic use must promptly align their practices with the new regulatory framework to ensure compliance and business continuity.

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

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