The Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, Department of Revenue, Government of India, has issued Instruction No. 22/2026-Customs dated November 6, 2026, prescribing provisional assessment and furnishing of guarantees for imports of “Alloy Steel Chisel/tool and Hydraulic Rock Breaker in fully assembled condition” exported from Malaysia.
The Instruction has been issued in reference to Notification No. 27/2026-Customs (ADD) dated November 5, 2026, under Section 9A(1A) of the Customs Tariff Act, 1975, read with Rule 26(4A) of the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.
The measure follows the initiation of an anti-circumvention investigation concerning alleged routing of imports through Malaysia to circumvent the existing anti-dumping duty applicable to specified products originating in or exported from China PR and Korea RP.
Background: Existing Anti-Dumping Duty on Imports from China and South Korea
The Central Government had earlier imposed anti-dumping duty on imports of Alloy Steel Chisel/tool and Hydraulic Rock Breaker in fully assembled condition, originating in or exported from China PR and Korea RP, through Notification No. 11/2024-Customs (ADD) dated June 27, 2024.
Subsequently, the Directorate General of Trade Remedies (DGTR), through Initiation Notification F. No. 07/20/2026-DGTR dated September 28, 2026, initiated an anti-circumvention investigation concerning alleged country-based circumvention of the existing anti-dumping duty through Malaysia.
The Designated Authority observed prima facie evidence of such circumvention and recommended provisional assessment of the imports under investigation, together with appropriate guarantees from importers, pending the final outcome.
CBIC Prescribes Guarantee Rates for Imports Exported from Malaysia
Under Paragraph 4 of Instruction No. 22/2026-Customs, proper officers of Customs may obtain sufficient guarantees from importers at the following rates, calculated on the CIF value of the imported goods:
| Product under Investigation | Guarantee Rate |
| Hydraulic Rock Breaker in fully assembled condition | 162.50% of CIF value |
| Alloy Steel Chisel/tool | 29.21% of CIF value |
These rates are prescribed for quantifying the guarantee against potential anti-dumping duty that may become payable pursuant to the decision of the Central Government under Rule 27(3) of the Anti-Dumping Rules, 1995.
Importantly, the prescribed percentages represent guarantee rates and do not constitute a final levy of additional anti-dumping duty. The actual liability, if any, will depend on the outcome of the anti-circumvention investigation and the subsequent decision of the Central Government.
Seven Components of Hydraulic Rock Breakers Also Covered
The scope of the anti-circumvention investigation is not restricted to fully assembled hydraulic rock breakers. It also covers the following seven assemblies, sub-assemblies and components:
- Front Head
- Back Head
- Piston for Hydraulic Cylinder or Rock Breaker
- Cylinder Body or Hydraulic Unit, consisting of Front Head, Back Head, Cylinder and Piston
- Bracket
- Frame
- Cylinder for Hydraulic Rock Breaker
These components are identified in Notification No. 27/2026-Customs (ADD) with reference to Table D1 of Notification No. 11/2024-Customs (ADD).
Provisional Assessment to Continue Pending Government Decision
In terms of Notification No. 27/2026-Customs (ADD) dated November 5, 2026, imports of the specified products exported from Malaysia shall remain subject to provisional assessment until the Central Government takes a decision under Rule 27(3) of the Anti-Dumping Rules, 1995.
The proper Customs officer may require importers to furnish such guarantees as deemed appropriate for payment of anti-dumping duty, if any, that may become payable following the recommendations of the Designated Authority and the Government’s decision.
Accordingly, importers should take note of the potential financial exposure arising from the prescribed guarantee requirements, particularly for hydraulic rock breakers where the specified guarantee rate is 162.50% of CIF value.
Existing Anti-Dumping Duty to Continue Wherever Applicable
CBIC has expressly clarified under Paragraph 6 of Instruction No. 22/2026-Customs that the existing anti-dumping duty imposed through Notification No. 11/2024-Customs (ADD) dated June 27, 2024, wherever applicable, shall continue to be levied and collected in accordance with that notification.
Therefore, the provisional assessment mechanism for goods exported from Malaysia does not suspend or replace the existing anti-dumping duty framework applicable to covered imports from China PR and Korea RP.
Implications for Importers, Customs Brokers and Trade
The Instruction has significant implications for importers dealing in construction, mining and infrastructure equipment, particularly those importing hydraulic rock breakers, alloy steel chisels and related components exported from Malaysia.
Importers and Customs brokers should carefully examine the product description, country of export, applicability of provisional assessment and guarantee requirements before filing or processing import declarations.
The substantial guarantee percentages may also affect working capital arrangements, bank guarantee facilities and import transaction planning, depending upon the requirements imposed by the proper Customs officer.
CBIC Directs Field Formations to Ensure Strict Compliance
Through Paragraph 7 of Instruction No. 22/2026-Customs, CBIC has directed Customs field formations to sensitise officers under their respective jurisdictions and ensure strict compliance with the prescribed requirements.
The Board has further directed that any difficulties arising in implementation may be brought to its notice.
Effect of the Instruction
CBIC Instruction No. 22/2026-Customs operationalises the provisional assessment requirements for imports of specified Alloy Steel Chisel/tool and Hydraulic Rock Breaker products exported from Malaysia, pending the outcome of the anti-circumvention investigation.
The key measures include provisional assessment of covered imports, guarantee rates of 162.50% of CIF value for fully assembled Hydraulic Rock Breakers and 29.21% of CIF value for Alloy Steel Chisel/tools, and continuation of existing anti-dumping duties wherever applicable.
The measure is intended to safeguard the effectiveness of India’s anti-dumping framework while the alleged country-based circumvention through Malaysia remains under investigation.
The Intrusions can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1000593/ENG/Instructions
