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For companies purchasing mica pearl pigments from China, however, the supplier's price may not be the only important cost to consider. The customs duties that apply may impact the cost of the shipment, while sometimes, the manufacturer of the products may also be a determining factor.
This is why the latest decision by the Directorate General of Trade Remedies (DGTR) deserves attention.
In its final findings published in the Gazette of India on 22 October 2026, DGTR recommended continuing anti-dumping duty on Natural Mica-based Pearl Industrial Pigments, excluding cosmetic grade, originating in or exported from China.
The recommendation follows a sunset review examining whether the duty should continue after its existing period expires. DGTR found that removing the measure could lead to continued dumping and further injury to Indian manufacturers.
The authority has recommended duty rates of US$299 and US$3,144 per metric tonne, depending on the producer and the conditions specified in its findings.
For Indian importers, paint manufacturers, coating businesses and pigment distributors, the review raises important questions about product coverage, HSN classification, supplier details and future import costs.
The crucial difference here is that DGTR has recommended that the duty should continue for another five years. The recommendation does not constitute, in its own right, a new customs duty. The existing anti-dumping duty has been renewed up to 25 February 2027, and any other five-year period must necessarily be done via a Central Government notification.
The final determination was made under the provisions of the Customs Tariff Act, 1975, and the Anti-Dumping Rules, 1995.
| Particular | Details |
| Issuing Authority | Directorate General of Trade Remedies (DGTR) |
| Ministry | Ministry of Commerce and Industry |
| Gazette Publication Date | 22 October 2026 |
| Investigation | Sunset Review of Anti-Dumping Duty |
| Case Number | AD (SSR)-15/2025 |
| File Number | 7/31/2025-DGTR |
| Product | Natural Mica based Pearl Industrial Pigments, excluding cosmetic grade |
| Country Concerned | China PR |
| Domestic Industry Applicant | Sudarshan Chemical Industries Limited |
| Period of Investigation | 1 October 2024 to 30 September 2025 |
| Existing Duty Extension | Up to 25 February 2027 |
| Latest Recommendation | Continue definitive ADD for five more years, subject to government notification |
| Governing Law | Customs Tariff Act, 1975, and Anti-Dumping Rules, 1995 |
The review was initiated on 5 March 2026 upon application by Sudarshan Chemical Industries Limited.
DGTR examined whether imports from China could continue to harm the Indian industry if the existing protection ended.
Anti-dumping duty is imposed to address injury caused by dumped imports. In simple terms, dumping occurs when goods are exported at prices below their normal value, as determined under the applicable trade-remedy rules.
A low import price alone does not automatically establish dumping. The investigating authority examines the relevant prices, dumping margins and injury to domestic industry.
The Indian Government first investigated natural mica pearl industrial pigments from China in May 2020.
Following that investigation, anti-dumping duty was imposed on 26 August 2021 through Notification No. 47/2021-Customs (ADD).
The measure was later reviewed because the domestic industry sought higher duty protection. After a mid-term review, the Government modified the duties through Notification No. 13/2023-Customs (ADD), dated 22 November 2023.
The existing duty was due to expire in August 2026. While DGTR conducted the sunset review, the Government extended it first to November 2026 and then to February 2027.
Why does a sunset review matter?
Anti-dumping duties generally remain in force for a specified period. Before they expire, the domestic industry can request a review to determine whether removing the duty is likely to result in dumping and injury continuing or happening again.
DGTR does not simply repeat the findings of the earlier investigation.
It examines the available evidence, including import prices, production, sales, market share, financial performance and the exporting industry's capacity.
In the current review, DGTR concluded that there was sufficient evidence to recommend continuing the measure.
The most important finding was that the Indian domestic industry remained vulnerable, despite improvements in its performance after the earlier duty was imposed.
The investigation highlighted several factors.
1. Chinese Imports Were Still Undercutting Indian Prices
DGTR also noted that Chinese imports were still underpricing the Indian industry by 10–20 percent.
However, the quantity of Chinese imports had fallen during the investigation period. Nevertheless, the authority believed that this price disparity was significant for assessing injury threat.
Lower import volumes did not necessarily mean the risk of dumping had disappeared.
2. Indian Manufacturers Had Improved Their Performance
The investigation showed improvements in domestic production, sales and market share.
Financial losses had also declined following the introduction of anti-dumping duty.
However, the industry continued to face financial difficulties, and a substantial share of available manufacturing capacity remained unused.
DGTR considered that removing the existing protection could put the industry's recovery at risk.
3. Chinese Manufacturers Had Considerable Spare Capacity
Another important concern was the production capacity available with Chinese manufacturers.
DGTR found that participating producers had substantial unused capacity and had undertaken additional capacity expansions totalling 42,000 metric tonnes.
The authority also examined their exports to other countries.
It found that a significant portion of those exports would be priced at levels likely to cause injury if redirected to the Indian market.
DGTR therefore considered the possibility of increased exports to India following the expiry of the duty.
4. The Domestic Industry Could Meet Indian Demand
The authority also examined whether Indian manufacturers had enough capacity to supply the domestic market.
Its findings stated that the available domestic capacity was sufficient to meet demand in India.
DGTR also found that unused domestic capacity was sufficient to meet the demand then being served by imports from China.
This was relevant to the authority's assessment of whether continued duties were justified.
5. Impact on Downstream Manufacturers Was Found to Be Limited
The investigation considered the impact of anti-dumping duty on industries purchasing these pigments.
Based on information submitted by a participating user, DGTR found that the duty increased the total cost of the downstream product by less than 1%.
The authority therefore considered the impact on downstream industry to be insignificant in the circumstances examined.
This finding does not mean the additional cost will be below 1% for every business. Actual costs depend on the product, quantity, supplier and applicable duty.
What Was DGTR's Final Conclusion?
After reviewing the evidence, DGTR concluded that allowing the existing duty to expire could lead to continued dumping and renewed injury to Indian manufacturers.
It recommended continuing the definitive anti-dumping duty for another five years.
Rather than recalculating every duty rate, the authority generally recommended retaining the existing rates. Producers or exporters that previously received individual rates but did not respond to the current investigation were assigned the residual rate in the recommendation.
The final findings contain a duty table setting out the recommended rates for imports of covered mica pearl industrial pigments.
The proposed amount depends on the producer and the country of origin or export.
| Country of Origin | Producer / Exporter | Recommended ADD |
| China PR | Fujian Kuncai Material Technology Company Limited | US$299 per MT |
| China PR | Any other producer | US$3,144 per MT |
| Country other than China PR, with goods exported from China PR | Any producer | US$3,144 per MT |
MT means metric tonne.
These are DGTR-recommended rates. Importers must check the legally operative customs notification before treating these figures as duty payable on a shipment.
Why Is There Such a Difference Between the Two Rates?
The recommended duty is not a single fixed amount for every Chinese supplier.
DGTR has provided an individual rate for Fujian Kuncai Material Technology Company Limited. The other producers covered by the residual category are assigned a higher rate.
This difference can matter when businesses compare suppliers.
However, the lower individual rate is conditional. The applicable notification and supporting documents must establish that the consignment qualifies for it.
Special Invoice Condition for the Individual Duty Rate
Specifically, the October 2026 results stipulate that the personal rate of US$299 per metric tonne is based on a special provision of the commercial invoice. In addition, the invoice should include the signature and date of a specific official of the issuing party of the invoice.
The declaration must identify the volume of covered goods, confirm that they were manufactured by the specified company in China and provide the manufacturer's name and address.
The exact declaration is prescribed in paragraph 154 of the final findings.
Paragraph 155 states that, where the required invoice is not presented, the residual duty applicable to other producers should apply.
For importers, this means product origin and manufacturer details must be supported by appropriate documentation. A supplier's verbal assurance or a general product description is not enough to establish eligibility for a producer-specific rate.
The invoice condition applies to the recommended duty arrangement and must be checked against the implementing notification before use in customs assessment.
Mica pearl pigments are speciality pigments used to create a shiny, metallic or pearl-like finish. They are generally made using mica particles coated with materials such as titanium dioxide or iron oxide. These coatings produce different colours and visual effects when light reflects from the pigment.
The materials are used in several industrial applications, including paints, coatings, inks and plastics. The current anti-dumping review covers natural mica-based pearl industrial pigments, excluding cosmetic grade.
Where Are These Pigments Used?
Not every product sold as mica powder, mica colour or pearl pigment automatically falls within the scope of this measure.
The actual composition, grade and product description must be checked.
The type of pigment is important because the anti-dumping investigation does not cover every natural or synthetic mica product.
The DGTR findings preserve the product scope established during the original investigation.
| Product Type | Position Under ADD Review |
| Natural mica pearl pigments for industrial applications | Covered |
| Natural mica pearl pigments for applicable automotive applications | Covered |
| Cosmetic-grade natural mica pigments | Excluded |
| Synthetic mica pearl pigments | Not covered by this ADD investigation |
Does Cosmetic-Grade Exclusion Mean No Customs Duty?
No. The exclusion means that the specified cosmetic-grade product falls outside this particular anti-dumping product scope.
It does not establish an exemption from normal customs duties, countervailing duty or other applicable import requirements.
DGTR also recorded arguments concerning cosmetic-grade pigments being imported for industrial applications.
The authority retained the original product scope rather than issuing a new clarification restricting the exclusion solely according to end use.
Importers should therefore examine the actual grade and technical characteristics of the product. Merely changing the product description on an invoice cannot establish that an exclusion applies.
What About Synthetic Mica Pigments?
Synthetic mica pigments are outside the product scope of this anti-dumping investigation.
However, certain synthetic pearlescent pigments fall within the separate countervailing-duty measure discussed in the findings.
Businesses importing synthetic pigments should therefore not assume that they are free from all trade-remedy duties.
Correct HSN classification matters when importing industrial pigments.
The HSN code identifies the tariff classification under which imported goods are declared. It is relevant to customs assessment and applicable regulatory checks.
DGTR identified several tariff classifications associated with the goods under investigation.
The final recommendation lists the following codes:
| HSN Code | Position in the Findings |
| 3206 49 90 | Included in the recommended duty table |
| 3206 19 00 | Included in the recommended duty table |
| 3204 17 59 | Included in the recommended duty table |
| 3204 17 39 | Included in the recommended duty table |
| 3204 17 20 | Included in the recommended duty table |
| 3204 17 90 | Included in the recommended duty table |
| 3207 10 40 | Included in the recommended duty table |
| 3206 11 10 | Included in the recommended duty table |
| 3206 11 90 | Included in the recommended duty table |
Why Are Several HSN Codes Mentioned?
The goods were originally considered under subheading 3206 11.
During the earlier mid-term review, DGTR found that the product under consideration was also being imported under other tariff codes.
Those additional codes were therefore included in the duty coverage considered during the review.
The same codes appear in the October 2026 recommendation.
Is an HSN Code Enough to Determine Anti-Dumping Duty?
No.
The final findings specifically state that the customs classifications are indicative and do not define the product scope by themselves.
This is an important distinction for importers.
A product should not automatically be treated as subject to anti-dumping duty simply because its HSN code appears in the duty table.
Likewise, declaring covered goods under a different code does not necessarily take them outside the measure.
The product description, technical specifications and applicable customs notification must be examined together.
Where classification is uncertain, businesses should seek a product-specific customs assessment rather than relying only on a supplier's suggested HSN code.
Mica pigment importers also need to consider countervailing duty (CVD).
Anti-dumping duty and countervailing duty are separate trade-remedy measures.
Anti-dumping duty deals with injurious dumping. Countervailing duty addresses injury caused by imports benefiting from countervailable subsidies.
India introduced countervailing duty on certain effect pearlescent pigments or mica pearlescent pigments from China through Notification No. 04/2025-Customs (CVD), dated 26 June 2025.
The product scope of that measure is not identical to the anti-dumping investigation.
How Do ADD and CVD Product Categories Differ?
| Product Category | ADD Scope | CVD Scope |
| Natural mica pigments for industrial use | Included | Included |
| Natural mica pigments for cosmetic applications | Excluded from ADD product scope | Included |
| Natural mica pigments for automotive applications | Included | Excluded |
| Synthetic pigments for relevant industrial applications | Excluded | Included |
| Synthetic pigments for relevant cosmetic applications | Excluded | Included |
| Synthetic pigments for automotive applications | Excluded | Excluded |
These distinctions reflect the scope comparison recorded in DGTR's final findings. The precise legal treatment must still be established under the relevant customs notifications.
Will Importers Have to Pay the Full ADD and CVD Together?
Not necessarily.
The two measures cannot be used to compensate twice for the same situation.
For natural-grade pearlescent pigments used in industrial applications, the countervailing-duty arrangement contains an adjustment linked to the anti-dumping duty payable under Notification No. 13/2023-Customs (ADD).
The October 2026 findings expressly refer to this arrangement.
For other product categories, the treatment differs according to whether ADD, CVD or neither measure applies.
This is why importers should not simply add the full anti-dumping and countervailing duty rates together when estimating their import costs.
The correct treatment depends on the imported product, applicable notifications and relevant adjustment provisions.
The existing anti-dumping duty was extended through Notification No. 21/2026-Customs (ADD), dated 21 August 2026.
That notification extended the existing measure until 25 February 2027.
The October 2026 sunset-review findings recommend continuing the duty for another five years.
However, these are two different developments.
The August notification extended the existing measure. The October findings recommend what should happen after the review.
When Will the Recommended Five-Year Duty Apply?
DGTR recommends that the further five-year period should begin from the date of the relevant Central Government notification.
Therefore, the date of the final findings cannot automatically be treated as the commencement date of a fresh five-year duty.
Businesses should verify whether the Government has issued an implementing notification before using the recommended rates or calculating the new validity period.
| Date | Regulatory Development |
| 9 May 2020 | Original anti-dumping investigation initiated |
| 8 June 2021 | Original DGTR final findings |
| 26 August 2021 | Definitive anti-dumping duty imposed |
| 30 September 2022 | Mid-term review initiated |
| 27 September 2023 | Mid-term review final findings |
| 22 November 2023 | Existing anti-dumping measure modified |
| 5 March 2026 | Sunset review initiated |
| 22 May 2026 | Existing duty extended to 25 November 2026 |
| 21 August 2026 | Existing duty extended to 25 February 2027 |
| 22 October 2026 | Sunset-review final findings published in the Gazette |
The timeline helps businesses distinguish the older operative duty from the latest recommendation.
The biggest commercial concern for importers is the landed cost of goods.
The purchase price may appear competitive, but it does not represent the complete cost of bringing goods into India.
Freight, insurance, applicable customs duties and other charges may also need to be considered.
Where anti-dumping duty applies, it can affect the overall cost of the imported pigment.
Supplier Selection Could Become More Important
The recommended rates are producer-specific.
Fujian Kuncai Material Technology Company Limited has a recommended individual rate of US$299 per metric tonne, subject to the invoice condition.
The recommended residual rate for other producers is US$3,144 per metric tonne.
The distinction means businesses should review manufacturer details when comparing sourcing options.
A lower product quotation is not necessarily the lowest landed-cost option.
Import Contracts May Need Closer Review
Businesses placing new orders should know which party is responsible for customs duties and whether the agreed price includes any duty-related costs.
Where a shipment is planned for a future date, the applicable duty must be checked against the notification in force at the relevant time.
Importers should also ensure that the supplier can provide accurate manufacturing and origin information.
Manufacturing Costs May Be Affected
Paint, ink, coating and plastics manufacturers using the imported pigments may need to review their raw-material budgets.
However, the impact will depend on the quantity purchased, supplier, product grade and applicable duty.
The DGTR findings recorded a cost increase of less than 1% for a downstream product based on information supplied by a participating user.
That finding is useful for understanding the authority's assessment, but it is not a standard cost estimate for every importer.
The review is relevant to several types of Indian businesses.
1. Importers and Pigment Distributors
Businesses importing the covered product from China should check tariff classification, origin, producer details and duty applicability.
Distributors should also maintain accurate product descriptions and supplier information for their imported goods.
2. Paints and Coatings Manufacturers
These businesses may purchase mica pearl pigments as raw materials for decorative and speciality finishes.
Where the pigments are sourced from China, purchasing teams should check whether the applicable duty is reflected in their raw-material costs.
3. Printing Ink Manufacturers
Businesses manufacturing speciality printing inks may use pearlescent pigments to achieve particular visual effects.
They should verify the treatment of imported pigments according to their composition and grade.
4. Plastics Manufacturers
Producers who use mica pigments in plastics will have to consider the duty while comparing the cost of domestic versus imported pigments.
5. Domestic Pigment Producers
The report can be useful for domestic producers as well.
DGTR found that the domestic industry had improved certain performance indicators after the earlier duty was imposed, but remained financially vulnerable.
The recommendation aims to address the likelihood of renewed injury if the existing measure expires.
These results from October 2026 do not constitute a new application and registration process for all mica pigment importers.
Nevertheless, it is necessary to keep and analyze the data required for proper customs classification and valuation.
The following details are particularly relevant:
Where an importer seeks the individual rate identified in the DGTR recommendation, the prescribed manufacturer declaration becomes particularly important if that condition is implemented.
These checks are useful for import planning and customs assessment. They should not be confused with additional mandatory documents newly introduced by the sunset-review findings.
Businesses do not need to assume that every shipment will face a new duty immediately following publication of the final findings.
The appropriate response is to check which products are covered and what duty is legally applicable.
Importers should first identify the actual pigment being purchased. Its natural or synthetic form, grade and intended application will help determine which trade-remedy measures may be relevant.
The next step is to verify the applicable customs classification and notification.
For businesses buying from Chinese suppliers, manufacturer information deserves particular attention because the recommended duty table distinguishes between producer categories.
Companies expecting new shipments should also review their landed-cost calculations and contractual arrangements.
Where there is uncertainty about the product scope, country of origin or interaction between ADD and CVD, obtaining appropriate customs advice before clearance may help avoid disputes.
The main priority is to verify the legally applicable duty before importing, rather than relying only on a recommended rate or a supplier's product description.
Businesses entering international trade need to understand the registrations, permissions and documentation that apply to their activities.
Corpseed provides services relating to import and export business compliance, including IEC registration and DGFT-related services.
For businesses importing industrial raw materials, the relevant assistance will depend on the products being traded and their applicable import policy.
1. Import Export Code Registration
An Import Export Code (IEC) is generally required for businesses importing or exporting goods in India, subject to applicable exemptions.
Businesses beginning international trade can seek assistance with Import Export Code registration through Corpseed.
2. DGFT Licensing Support
Certain restricted goods require an import authorisation from the Directorate General of Foreign Trade.
Businesses dealing with products covered by such restrictions may seek assistance with DGFT licence services.
The mica pigment anti-dumping review does not, by itself, make a DGFT restricted import licence mandatory.
3. ICEGATE Registration Assistance
ICEGATE is the Indian Customs electronic platform used for various customs-related services and electronic filings.
Businesses requiring relevant registration support can explore Corpseed's ICEGATE Registration services.
The need for a particular registration or service must be assessed under the applicable requirements. An anti-dumping duty recommendation does not automatically create a separate registration obligation.
Need Help with Import Compliance in India?
Importing industrial materials requires attention to the applicable trade policy, business registrations and customs-related documentation.
If a business is planning to begin imports or needs help understanding its relevant import-compliance requirements, Corpseed can assist with the services it offers.
Contact Corpseed to discuss the import compliance requirements relevant to your business.
DGTR has recommended continuing anti-dumping duty on Natural Mica based Pearl Industrial Pigments, excluding cosmetic grade, imported from China.
The recommendation follows findings that dumping and injury to Indian manufacturers could continue or recur if the existing measure expires.
The proposed rates are US$299 per metric tonne for the specified producer, subject to invoice conditions, and US$3,144 per metric tonne for the other producer or export categories in the duty table.
The existing duty was extended until 25 February 2027. Any further five-year continuation requires a Central Government implementing notification.
For importers, the most important checks are the product description, HSN classification, country of origin, manufacturer details and applicable ADD/CVD provisions.
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