India Updates Duty Structure for Pearlescent Pigments Imports

On June 16, 2025, the Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry, issued a corrigendum to clarify the countervailing duty (CVD) on imports of effect pearlescent pigments and mica pearlescent pigments. This follows the DGTR’s final findings, published on March 28, 2025. The corrigendum outlines how CVD should be calculated for different grades and uses of pearlescent pigments, ensuring proper duty collection in line with India's trade regulations.

For natural-grade effect pearlescent or mica pearlescent pigments used in industrial applications, the CVD will be the difference between the duty amount and the applicable anti-dumping duty under Notification No. 13/2023-Cus (ADD) dated November 22, 2023. In cases where these pigments are used for cosmetic applications, the CVD will be equal to the full amount since no anti-dumping duty applies. However, for automotive applications of natural-grade pigments, no countervailing duty will be charged, providing relief for manufacturers in the automotive sector.

For synthetic-grade effect pearlescent pigments, the CVD will be the same as the amount specified, as no anti-dumping duty is applicable. This clarification is crucial for businesses involved in the import of pearlescent pigments, as it ensures a clear understanding of the duty structure for various types and applications. The corrigendum also highlights that the customs classification of these products is only indicative and does not define their exact scope under the current duty rules.