The Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, has issued Instruction No. 12/2026-Customs dated 3 July 2026, prescribing provisional assessment and furnishing of sufficient guarantee in respect of imports of “Insoluble Sulphur” originating in or exported from the People’s Republic of China.
The Instruction has been issued with reference to Notification No. 13/2026-Customs (ADD) dated 3 July 2026, issued by the Central Government in accordance with sub-rule (5) of Rule 30 of the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.
CBIC has noted that anti-dumping duty had earlier been imposed on imports of Insoluble Sulphur originating in or exported from the People’s Republic of China and Japan through Notification No. 13/2025-Customs (ADD) dated 6 June 2025, published in the Gazette of India vide G.S.R. 372(E) dated 6 June 2025.
The existing anti-dumping duty notification covers Insoluble Sulphur falling under tariff items 38123930, 28020010 and 38249900 of the First Schedule to the Customs Tariff Act, 1975. The customs classification specified in the notification is indicative and does not restrict the scope of the product under consideration.
Subsequently, the Designated Authority, through Initiation Notification F. No. 7/03/2026-DGTR dated 20 March 2026, initiated an anti-absorption review investigation concerning imports of Insoluble Sulphur originating in or exported from the People’s Republic of China.
Pending the outcome of the anti-absorption review investigation, and in terms of Notification No. 13/2026-Customs (ADD) dated 3 July 2026, imports of the subject goods originating in or exported from the People’s Republic of China and attracting anti-dumping duty under Notification No. 13/2025-Customs (ADD) dated 6 June 2025 are required to be subjected to provisional assessment.
Such provisional assessment shall continue until a decision is taken by the Central Government under sub-rule (3) of Rule 31 of the Anti-Dumping Rules, 1995.
CBIC has further stated that the Designated Authority has informed that, on a prima facie basis, an estimated increase of around USD 170-180 per MT over the existing anti-dumping duty may be warranted in the matter.
Accordingly, the proper Customs officer may, in respect of imports of Insoluble Sulphur originating in or exported from the People’s Republic of China, obtain a sufficient guarantee to cover any potential increase in anti-dumping duty, in line with the estimated additional amount indicated by the Designated Authority.
The guarantee requirement will operate in addition to the anti-dumping duty already imposed under Notification No. 13/2025-Customs (ADD) dated 6 June 2025. The existing anti-dumping duty shall continue to be levied and collected in accordance with the provisions of the said notification.
Under the existing anti-dumping framework prescribed by Notification No. 13/2025-Customs (ADD), specified imports of Insoluble Sulphur of Chinese origin are subject to anti-dumping duty, including at the prescribed rate of USD 307 per MT for the relevant entries concerning China PR, subject to the precise country of origin, country of export and producer conditions set out in the notification.
The latest Instruction therefore establishes a two-fold compliance mechanism for covered imports from China: continued collection of the existing anti-dumping duty and provisional assessment backed by sufficient guarantee for any possible additional anti-dumping duty arising from the ongoing anti-absorption review.
CBIC has directed field formations to sensitise officers under their jurisdiction regarding the prescribed mechanism and to ensure strict compliance with the Instruction.
The measure is intended to safeguard effective enforcement of the anti-dumping framework while the anti-absorption review investigation remains pending and to secure potential additional duty liability that may arise upon conclusion of the review proceedings.
The Instructions can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1000581/ENG/Instructions
