CBIC Imposes Anti-Dumping Duty on Normal Butanol Imports

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 06.07.2026

CBIC Imposes Anti-Dumping Duty on Normal Butanol Imports

The Government of India has issued a notification imposing anti-dumping duties on imports of Normal Butanol (N-Butyl Alcohol) from Malaysia, South Africa, and the United States of America. This move aims to protect the domestic industry from unfair trade practices and ensure a level playing field for Indian manufacturers.

Background

Normal Butanol, also known as N-Butyl Alcohol, is a key industrial chemical used in the production of paints, coatings, plastics, and other chemical products. The Indian government, following an investigation by the designated authority, found that the cessation of existing anti-dumping duties would likely lead to the continuation or recurrence of dumping and injury to the domestic industry.

Key Provisions of the Notification

Scope of Goods
- The anti-dumping duty applies to Normal Butanol (N-Butyl Alcohol) classified under tariff item 2905 13 00 of the Customs Tariff Act, 1975.
- The duty covers imports originating in or exported from Malaysia, South Africa, and the United States of America.
Duty Rates and Applicability
- The notification specifies different duty rates based on the country of origin, country of export, and the producer. The rates are imposed per metric ton (MT) and are denominated in US dollars.
- Malaysia:
  - BASF Petronas Chemicals Sdn. Bhd.: US$ 26.59/MT
  - PETRONAS Chemicals Derivatives Sdn Bhd: US$ 51.42/MT
  - Other producers: US$ 149.31/MT
- South Africa:
  - Any producer: US$ 13.24/MT
- United States of America:
  - Any producer: US$ 24.16/MT
- The same rates apply if the goods are exported from these countries to India, even if the country of origin is different, as detailed in the notification table.
Conditions for Preferential Duty Rates
- For the lower duty rates applicable to specific Malaysian producers, importers must present a valid commercial invoice with a signed declaration by an authorized official of the producer.
- If such documentation is not provided, the higher duty rate for “other producers” will apply.
Duration and Currency
- The anti-dumping duty is effective for five years from the date of publication of the notification, unless revoked, superseded, or amended earlier.
- Duties are payable in Indian currency, with the exchange rate determined as per the relevant government notification on the date of bill of entry presentation.

Impact on Industry and Trade

Domestic Industry Protection: The imposition of these duties is expected to safeguard Indian manufacturers from unfairly priced imports, helping maintain healthy competition and industrial growth.
Importers’ Compliance: Importers must ensure proper documentation to avail preferential rates and avoid higher duties.
International Trade: Exporters from Malaysia, South Africa, and the USA will need to adjust their pricing and documentation to comply with the new regulations.

Conclusion

The anti-dumping duty on Normal Butanol imports reflects India’s commitment to protecting its domestic industry from injurious dumping practices. Stakeholders in the chemical and allied industries should review the notification in detail to ensure compliance and adapt their import/export strategies accordingly.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

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

Disclaimer

Handy Download:

Customs Notification (ADD)Download

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/