CBIC Imposes Anti-Dumping Duty on Toluene Di-Isocyanate (TDI) Imports

The Ministry of Finance, Department of Revenue, has issued a new notification (No. 03/2026-Customs (ADD)) on February 10, 2026, regarding the imposition of anti-dumping duties on imports of “Toluene Di-Isocyanate (TDI) having isomer content in the ratio of 80:20.” This notification is aimed at protecting the domestic industry from the adverse effects of dumping practices by certain countries. Let’s dive into the details of this notification and understand its implications.

What is Anti-Dumping Duty?

Anti-dumping duty is a protectionist tariff imposed by a domestic government on foreign imports that it believes are priced below fair market value. The purpose of this duty is to safeguard domestic industries from unfair competition and prevent injury caused by the dumping of goods.

What is Toluene Di-Isocyanate (TDI)?

Toluene Di-Isocyanate (TDI) is a chemical compound widely used in the production of polyurethane products, such as foams, coatings, elastomers, and adhesives. The subject goods under this notification specifically refer to TDI with an isomer content in the ratio of 80:20. It is important to note that other grades of TDI are not covered under this notification.

Background of the Notification

The designated authority conducted an investigation into the imports of TDI from the European Union and Saudi Arabia. The investigation revealed that there is a likelihood of continued dumping of TDI from these countries, which could cause injury to the domestic industry if the existing anti-dumping duty is removed. Based on these findings, the authority recommended the continuation of anti-dumping duties on these imports.

Key Details of the Notification

The notification imposes anti-dumping duties on TDI imports originating from the European Union and Saudi Arabia. The details of the duty are outlined in the table below:

S.No.	Tariff Item	Description of Goods	Country of Origin	Country of Export	Producer	Amount (US$)	Unit
1	29291020	“Toluene DiIsocyanate (TDI) having isomer content in the ratio of 80:20”**	European Union	Any country including European Union	Covestro Deutschland AG	221.04	MT
2	-do-	-do-	-do-	-do-	Borsod Chem Zrt	102.05	MT
3	-do-	-do-	-do-	-do-	Any producer other than mentioned in S. No. 1 & 2 above	264.96	MT
4	-do-	-do-	Any country other than countries attracting anti-dumping duty	European Union	Any	264.96	MT
5	-do-	-do-	Saudi Arabia	Any country including Saudi Arabia	Sadara Chemical Company	217.55	MT
6	-do-	-do-	-do-	-do-	Any producer other than mentioned in S. No. 5 above	344.33	MT
7	-do-	-do-	Any country other than countries attracting anti-dumping duty	Saudi Arabia	Any	344.33	MT

Duration of the Anti-Dumping Duty 

The anti-dumping duty imposed under this notification will be effective for a period of five years from the date of publication in the Official Gazette, unless it is revoked, superseded, or amended earlier. The duty will be payable in Indian currency, and the applicable exchange rate for calculation will be determined based on the rate specified in the Government of India’s notifications under Section 14 of the Customs Act, 1962.

Implications of the Notification

Protection for Domestic Industry: The imposition of anti-dumping duties will help protect Indian manufacturers of TDI from unfair competition and ensure a level playing field.
Impact on Importers: Importers of TDI from the European Union and Saudi Arabia will need to factor in the additional cost of anti-dumping duties, which may affect their pricing and profitability.
Encouragement for Local Production: By curbing dumping practices, the notification encourages domestic production and reduces dependency on imports.
Market Stability: The measure aims to stabilize the market and prevent price distortions caused by dumped imports.

Conclusion

The Ministry of Finance’s decision to impose anti-dumping duties on TDI imports from the European Union and Saudi Arabia is a significant step toward protecting the domestic industry from unfair trade practices. This notification ensures that Indian manufacturers can compete fairly in the market while maintaining the quality and affordability of their products. Businesses involved in the import or production of TDI should carefully review the details of this notification and adjust their strategies accordingly.

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

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