Extension of Anti-Dumping Duty on Normal Butanol or N-Butyl Alcohol Imports

The Government of India has once again demonstrated its commitment to protecting domestic industries from unfair trade practices by extending the anti-dumping duty on imports of “Normal Butanol or N-Butyl Alcohol.” This decision, announced through Notification No. 02/2026-Customs (ADD) dated January 8, 2026, ensures the continuation of measures aimed at preventing injury to Indian manufacturers caused by dumped imports from specific countries.

What is Anti-Dumping Duty?

Anti-dumping duty is a trade protection measure imposed by a country to safeguard its domestic industries from the adverse effects of dumping. Dumping occurs when a foreign exporter sells goods in another country at a price lower than their normal value, often below the cost of production. This practice can harm local industries by undercutting prices and creating unfair competition.

Background of the Notification

The anti-dumping duty on Normal Butanol, classified under tariff item 2905 13 00 of the First Schedule to the Customs Tariff Act, was initially imposed by the Government of India through Notification No. 21/2021-Customs (ADD) dated April 12, 2021. This duty targeted imports originating from the European Union, Malaysia, Singapore, South Africa, and the United States of America, as these countries were found to be exporting the product at unfairly low prices, causing injury to Indian manufacturers.

In September 2025, the Directorate General of Trade Remedies (DGTR) initiated a review of the anti-dumping duty under sub-section (5) of section 9A of the Customs Tariff Act, 1975, and rule 23 of the Customs Tariff (Identification, Assessment, and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. The review aimed to assess whether the continuation of the duty was necessary to prevent further injury to the domestic industry.

Key Highlights of the Notification

Extension of Anti-Dumping Duty: The Central Government has decided to extend the anti-dumping duty on Normal Butanol imports until July 12, 2026. This extension ensures that the domestic industry continues to be protected from the adverse effects of dumping.
Countries Covered: The anti-dumping duty applies to imports originating in or exported from the European Union, Malaysia, Singapore, South Africa, and the United States of America.
Legal Framework: The extension is made under the provisions of sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975, and rules 18 and 23 of the Customs Tariff Rules, 1995.
Amendment to Previous Notification: The principal notification (No. 21/2021-Customs (ADD)) has been amended to include a new paragraph stating that the anti-dumping duty will remain in force until July 12, 2026, unless revoked, superseded, or amended earlier.

Implications of the Extension 

The extension of the anti-dumping duty is a significant move to ensure a level playing field for Indian manufacturers of Normal Butanol. By curbing the influx of unfairly priced imports, the government aims to:

Protect Domestic Producers: The duty provides a safeguard for Indian manufacturers against the adverse effects of dumping, allowing them to compete fairly in the market.
Promote Economic Stability: By supporting local industries, the government contributes to economic growth and job creation in the sector.
Encourage Fair Trade Practices: The extension sends a strong message to exporting countries about India’s commitment to maintaining fair trade practices.

Conclusion

The extension of the anti-dumping duty on Normal Butanol imports is a testament to the Government of India’s proactive approach to protecting domestic industries from unfair trade practices. This measure not only ensures the survival and growth of local manufacturers but also promotes a healthy and competitive market environment. As the global trade landscape continues to evolve, such steps are crucial to safeguarding the interests of Indian businesses and fostering sustainable economic development.

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

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