## Policy Analysis Report: Countervailing Duty on Effect Pearlescent Pigments and Mica Pearlescent Pigments Originating in China PR
**1. Executive Summary:**
This report analyzes a new policy notification issued by the Ministry of Finance, Department of Revenue, imposing a countervailing duty (CVD) on imports of effect pearlescent pigments and mica pearlescent pigments originating in or exported from China PR. The policy aims to address the subsidization of these goods, which has allegedly caused material injury to the domestic industry in India. Key findings indicate that the CVD rates vary based on the producer and are subject to adjustments based on existing anti-dumping duties for specific applications.
**2. Introduction:**
This report provides an informative overview of the policy notification No. 042025-Customs (CVD), issued on June 26, 2025, regarding the imposition of a countervailing duty on certain pearlescent pigments imported from China PR. The analysis is based solely on the provided policy text.
**3. Policy Overview:**
* This is a *new* policy imposing a countervailing duty.
* **Core Objective:** The primary objective, inferred from the text, is to protect the domestic industry in India from material injury caused by subsidized imports of effect pearlescent pigments and mica pearlescent pigments originating in China PR.
**4. Background and Rationale:**
As a new policy, the text suggests the policy addresses an existing problem: The designated authority has found that the subject goods are being exported to India from China PR at subsidized prices, resulting in material injury to the domestic industry. This finding provides the rationale for imposing the countervailing duty to level the playing field and protect domestic producers.
**5. Key Provisions / Changes:**
As a new policy, this section details the main components:
* **Imposition of Countervailing Duty:** The core provision is the imposition of a countervailing duty on imports of "Effect pearlescent pigments or mica pearlescent pigments, excluding effect pigments for automotive applications" falling under tariff items 3206 11 10, 3206 11 90, 3206 19 00, and 3206 49 90.
* **Country of Origin/Export:** The duty applies to goods originating in or exported from China PR.
* **Variable Duty Rates:** The countervailing duty rate varies based on the producer in China PR, ranging from 11.18% to 25.76% of the CIF value. Specific rates are assigned to Ms Rika Technology Co. Ltd (14.49%), Ms Henan Lingbao New Materials Technology Co. Ltd (16.74%), Ms Zhejiang Coloray Technology Development Co., Ltd (14.63%) and Ms Jiangsu Pritty New Material Co., Ltd (11.18%). A rate of 25.76% is applied to any other producer from China PR.
* **Adjustments for Anti-Dumping Duty:** The countervailing duty is subject to adjustments based on existing anti-dumping duties for natural grade pigments used in industrial and cosmetic applications. No countervailing duty is charged for pigments used in automotive applications.
* **Duration:** The countervailing duty will be levied for five years from the date of publication (June 26, 2025), unless revoked, superseded, or amended earlier.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders directly affected by this policy are:
* **Domestic Manufacturers:** Indian producers of effect pearlescent pigments and mica pearlescent pigments who are expected to benefit from the reduced price advantage of Chinese imports.
* **Importers:** Companies importing these pigments from China PR will face increased costs due to the countervailing duty.
* **Consumers:** Industries using these pigments as inputs (e.g., cosmetics, paints, plastics) may experience price adjustments.
* **Chinese Producers/Exporters:** Companies producing and exporting the affected pigments from China PR, who will likely see reduced export volumes to India.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance, Department of Revenue, is responsible for implementing and administering the countervailing duty.
* **Tariff Classification:** Importers are required to correctly classify the goods under the specified tariff items to determine the applicable duty. Note 2 states "The customs classification is indicative only and not binding on the scope of the product under consideration."
* **Currency:** The duty is payable in Indian currency.
* **Exchange Rate:** The rate of exchange for calculating the duty is determined by notifications issued under Section 14 of the Customs Act, 1962. The relevant date for determining the exchange rate is the date of presentation of the bill of entry.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of this policy are:
* **Reduced Subsidized Imports:** Increased import costs due to the countervailing duty should reduce the volume of subsidized imports from China PR.
* **Increased Competitiveness of Domestic Industry:** By mitigating the price advantage of subsidized imports, the policy aims to improve the competitiveness and profitability of domestic producers.
* **Fair Trade Practices:** The policy seeks to ensure fair trade practices by counteracting the effects of subsidization, protecting the domestic market from unfair competition.
**9. Conclusion:**
The imposition of a countervailing duty on effect pearlescent pigments and mica pearlescent pigments originating in China PR represents a significant measure to address alleged subsidization and protect the Indian domestic industry. The policy's success will depend on effective implementation, accurate classification of goods, and ongoing monitoring of market dynamics. This policy is designed to create a more level playing field for domestic producers and ensure fair trade practices within the specified product market.
Key Entities Referenced
Ministry of Finance: The ministry under which the Department of Revenue operates.
Department of Revenue: A department of the Ministry of Finance responsible for issuing the notification.
New Delhi: The location where the notification was issued.
Customs Tariff Act, 1975: The legal act to which the notification refers, specifically regarding tariff items.
China PR: The country of origin of the subject goods (Effect pearlescent pigments or mica pearlescent pigments) that are subject to countervailing duty.
India: The country importing the subject goods, where the countervailing duty is applied.
Designated Authority: The authority that conducted the investigation and recommended the countervailing duty.
0682024DGTR: Notification number of the Designated Authority's final findings.
CVD OI 012024: Corrigendum Notification Number
Customs Tariff Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury Rules, 1995: Rules under which the countervailing duty is imposed.
Central Government: The entity imposing the countervailing duty.
Ms Rika Technology Co. Ltd.: A producer of the subject goods in China PR.
Ms Henan Lingbao New Materials Technology Co. Ltd: A producer of the subject goods in China PR.
Ms Zhejiang Coloray Technology Development Co., Ltd: A producer of the subject goods in China PR.
Ms Jiangsu Pritty New Material Co., Ltd.: A producer of the subject goods in China PR.
Customs Act, 1962: The act defining terms such as rate of exchange and CIF value.
CBIC190349302025TRU: F. No. reference number.
Dheeraj Sharma: Under Secy.
Customs Notification No. 132023Cus ADD: Notification pertaining to antidumping duty
Mayapuri, New Delhi: Location of Government of India Press
Delhi: Location of Controller of Publications
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-26062025-264167
CG-Dx Lx -x EG -I 2D 6H 0x 6x 2x
0 25-264167
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 377] नई दिल्ली, बृहस्ट्प जतिार, िनू 26, 2025/ागाढ़ 5, 1947
No. 377] NEW DELHI, THURSDAY, JUNE 26, 2025/ASHADHA 5, 1947
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
अजधसचू ना
नई दिल्ली, 26 िून, 2025
स.ं 04/2025-सीमा िल्ु क (सीिीडी)
सा.का.जन. 420(अ).— िहां दक जनर्िष्ि ट प्राजधकारी ने चीन िन. गण. (एतजममन पम चात जिसे जिगयगत ििे स े
संिर्भित दकया गया ह)ै , में मलू त: उत् पादित या िहां से जनयािजतत त ा भारत म ें ायाजतत “ऑटोमोटटि अनुप्रयोगों के जलए
इफेक्ट जपगमेंट को छोड़कर, प्रभािी पलिसेंट जपगमेंट या माइका पलिसेंट जपगमेंट” (एतजममन पम चात जिस े जिगयगत माल स े
संिर्भित दकया गया ह)ै , िो दक सीमािुल् क टैटरफ अजधजनयम, 1975 (1975 का 51) (जिसे एतजममन पम चात उक्त सीमा
िुल् क अजधजनयम से संिर्भित दकया गया ह)ै ,की प्र म अनुसूची के टैटरफ मि 3206 11 10,3206 11 90,3206 19 00 और
3206 49 90 के अंतगित ात ेह,ैं के मामल ेम ेंअजधसूचना संख् या 6/08/2024-डीिीटीार, दिनांक 28 माच,ि 2025 के तहत
भारत के रािपत्र, असाधारण, के भाग ।, खंड 1 म ेंप्रकाजित अपन े अंजतम जनष्क गों और िुजिपत्र अजधसूचना संख्या सीिीडी
(ओाई) - 01/2024 दिनांक 16 िून 2025 में इस जनणिय पर पहचं े ह ैंदक-
(i) प्रम नगत उत् पाि भारत को जिगयगत िेि स ेार् िक सहायता प्रा त मूल् य पर जनयाित दकया गया ा;
4214 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(ii) प्रम नगत उत् पािों को ार् िक सहायता जमलन ेके कारण यहां के ेरेल ू उद्योग को सारिान क्षजत हई ह;ै
(iii) यह सारिान क्षजत जिगयगत ििे म ें मलू त: उत् पादित या िहा ं से जनयािजतत जिगयगत िस्ट् तु के ार् िक
सहायता प्रा त ायात के कारण हई ह,ै
और उन्होंन े जिगयगत िेि म ें मलू त: उत्पादित या िहां से जनयाजि तत जिगयगत माल पर जनम चयात् मक ‘काउंटरिेललंग ड्यूटी’
लगाए िाने की जसफाटरि की ह।ै
अत:, अब, सीमा िुल् क टैटरफ (सजसिसडाइ्ड िस्ट् तओं कु की पहचान, उनका ांकलन, और उन पर काउंटरिेललंग ड्यूटी का
संग्रहण और क्षजत जनधािरण) जनयमािली, 1995 के जनयम 20 और 22 के सा पटित उक्त सीमािुल् क टैटरफ अजधजनयम की धारा
9 की उप धारा (1) और (6) के तहत प्रित् त िजतिययों का प्रयोग करते हए केन् र सरकार, जिजनर्िष्ि ट प्राजधकारी के उपयुिक् त अंजतम
जनष्क गों पर जिचार करने के पम चात, एतद्द्वारा, उक्त जिगयगत िस्ट् तु पर, जिनका जििरण नीचे िी गई सारणी के कॉलम (3) में
जिजनर्िष्ि ट ह,ै िो दक सीमा िुल् क टैटरफ अजधजनयम की प्र म अनुसूची के उन टैटरफ मि के अंतगति ाती ह ै िो दक नीच े कॉलम
(2) की तत्स ंबंधी प्रजिजम में जिजनर्िष्ि ट ह,ै िो कॉलम (4) की तत्स ंबंधी प्रजिजम में जिजनर्िष्ि ट ििे में मलू त: उत् पादित ह,ै िो कॉलम
(5) की तत्स ंबंधी प्रजिजम में जिजनर्िष्ि ट िेिों से जनयािजतत ह,ै और कॉलम (6) की तत्स ंबंधी प्रजिजम में जिजनर्िष्ि ट उत् पािकों स े
उत् पादित ह ै और भारत में ायाजतत ह,ै पर उस राजि तक की काउंटर िेललंग ड्यूटी लगाती ह ै िो दक कॉलम (7) की तत्सम्बंधी
प्रजिजम में उजल्लजखत ह,ै य ा:-
डयटू ी सारणी
क्र.स.ं टैटरफ मि माल का मलू त: उत्पािन जनयाति क का उत्पािकता ि डयटू ी की राजि,
जििरण का ििे ििे
सीाईएफ मल्ू य के
% के रूप म ें
(1) (2) (3) (4) (5) (6) (7)
1. 3206 11 10, ऑटोमोटटि चीन िन. गण. चीन िन.
अनुप्रयोगों गण. सजहत
3206 11 90, मेससि रीका
के जलए कोई भी ििे
टेक्नोलॉिी कंपनी
3206 19 00,
इफेक्ट
जलजमटेड
3206 49 90 जपगमेंट को
छोड़कर,
14.49%
प्रभािी
पलिसेंट
जपगमेंट या
माइका
पलिसेंट
जपगमेंट
2. -तििै - -तििै - चीन िन. गण. चीन िन. मेससि हने ान
गण. सजहत ललंगबाओ न्यू
कोई भी ििे मैटेटरयल्स
16.74%
टेक्नोलॉिी कंपनी
जलजमटेड
3. -तििै - -तििै - चीन िन. गण. चीन िन. मेससि झेजियांग
गण. सजहत कोलोरे टेक्नोलॉिी 14.63%
कोई भी ििे[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
डेिलपमेंट कंपनी
जलजमटेड
4. -तििै - -तििै - चीन िन. गण. चीन िन. मेससि जियांग्सू
गण. सजहत लप्रंटी न्यू मटेटरयल 11.18%
कोई भी ििे कंपनी जलजमटेड
5. -तििै - -तििै - चीन िन. गण. चीन िन. उपरोतिय क्र.सं. 1
गण. सजहत से 4 के अलािा 25.76%
कोई भी ििे कोई अन्य उत्पािक
6. -तििै - -तििै - कोई अन्य ििे चीन िन. कोई भी उत्पािक
25.76%
गण.
नोट 1: एंटी-डंलपंग/काउंटरिेललंग ड्यूटी उपायों के संग्रह के जलए,-
क. औद्योजगक अनुप्रयोग के जलए प्राकृजतक ग्रेड के जपयरलेसेंट जपगमेंट या अभ्रक जपयरलेसेंट जपगमेंट के प्रभाि के मामले में, काउंटरिेललंग
िुल्क की मात्रा कॉलम (7) के अनसु ार िये राजि और सीमा िुल्क अजधसूचना संख्या 13/2023-सीयूएस (एडीडी), दिनांक 22
निंबर 2023 के अनुसार िये एंटीडंलपंग िुल्क के बीच अंतर के बराबर होगी;
ख. कॉस्ट्मेटटक अनुप्रयोग के जलए प्राकृजतक ग्रेड के प्रभािी पलिसेंट जपगमेंट या माइका पलिसेंट जपगमेंट के मामले में, चूंदक कोई एंटी-
डंलपंग िुल्क िये नहीं है, इसजलए प्रजतकारी िुल्क की मात्रा कॉलम (7) के अनुसार िये राजि के बराबर होगी;
ग. ऑटोमोटटि अनुप्रयोग के जलए प्राकृजतक ग्रेड के प्रभािी जपयरलेसेंट जपगमेंट या माइका जपयरलेसेंट जपगमेंट के मामले में, कोई
प्रजतकारी िुल्क नहीं लगाया िाना चाजहए, और
े. लसं ेटटक ग्रेड के प्रभािी पलिसेंट जपगमेंट या माइका पलिसेंट जपगमेंट के मामले में, चूंदक कोई एंटी-डंलपंग िुल्क िये नहीं ह,ै इसजलए
प्रजतकारी िुल्क की मात्रा कॉलम (7) के अनुसार िये राजि के बराबर होगी।
नोट 2: सीमा िुल्क िगीकरण केिल सांकेजतक ह ैत ा जिचाराधीन उत्पाि के िायरे पर बाध्यकारी नहीं ह।ै
2. इस अजधसूचना के तहत लगाया गया काउंटरिेललंग िुल्क ाजधकाटरक रािपत्र में इस अजधसूचना के प्रकािन की तारीख स े
पांच साल की अिजध के जलए लगाया िाएगा (िब तक दक इससे पहले इसे रद्द, अजधक्रजमत या संिोजधत नहीं दकया िाता ह)ै और भारतीय
मुरा में िये होगा।
स्ट्पमीकरण: - इस अजधसूचना के प्रयोिनों के जलए, -
(क) इस तरह के काउंटरिेललंग िुल्क की गणना के प्रयोिनों के जलए लागू जिजनमय की िर िह िर होगी िो भारत सरकार के जित्त
मंत्रालय (रािस्ट्ि जिभाग) की अजधसूचना में जनर्िमि ह,ै िो समय-समय पर िारी की िाती ह।ै सीमा िुल्क अजधजनयम, 1962
(1962 का 52) की धारा 14 द्वारा प्रित्त िजतिययााँ, और जिजनमय िर के जनधािरण के जलए प्रासंजगक जतज उतिय अजधजनयम की धारा
46 के तहत जबल ऑफ एंरी की प्रस्ट्तुजत की जतज होगी।
(ख) "सीाईएफ मूल्य" का अ ि सीमा िुल्क अजधजनयम, 1962 (1962 का 52) की धारा 14 के तहत जनधािटरत जनधािरण यो
ग्य मूल्य ह।ै
[फा. सं. सीबीाईसी-190349/30/2025-टीारय ूअनुभाग-सीबीईसी]
धीरि िमाि, अिर सजचि4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 26th June, 2025
No. 04/2025-Customs (CVD)
G.S.R. 420(E).— Whereas, in the matter of “Effect pearlescent pigments or mica pearlescent pigments,
excluding effect pigments for automotive applications” (hereinafter referred to as the subject goods) falling under tarrif
items 3206 11 10,3206 11 90,3206 19 00 and 3206 49 90 of the First Schedule to the Customs Tariff Act, 1975
(51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in or exported from China PR (hereinafter
referred to as the subject country), and imported into India, the designated authority in its final findings, published in
the Gazette of India, Extraordinary, Part I, section 1, vide Notification 06/8/2024-DGTR, dated the 28th March, 2025,
read with Corrigendum Notification No. CVD (OI) – 01/2024 dated the June 16th,2025 has come to the conclusion that-
(i) the subject goods have been exported to India from the subject country at subsidised prices;
(ii) the domestic industry has suffered material injury due to subsidisation of the subject goods;
(iii) material injury has been caused by the subsidised imports of the subject goods originating in or exported
from the subject country,
and has recommended the imposition of definitive countervailing duty on imports of the subject goods originating in or
exported from the subject country.
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (6) of section 9 of the Customs
Tariff Act read with rules 20 and 22 of the Customs Tariff (Identification, Assessment and Collection of Countervailing
Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering
the aforesaid final findings of the Designated Authority, hereby imposes on the subject goods, the description of which
is specified in column (3) of the Table below, falling under tarrif item of the First Schedule to the Customs Tariff Act
as specified in the corresponding entry in column (2), originating in the countries as specified in the corresponding entry
in column (4), exported from the countries as specified in the corresponding entry in column (5), produced by the
producers as specified in the corresponding entry in column (6), and imported into India, countervailing duty calculated
at the rate mentioned in the corresponding entry in column (7) of the said Table, namely:-
DUTY TABLE
S.N. Duty as
Country Country % of
Tariff item Description of goods Producer
of origin of export CIF
Value
(1) (2) (3) (4) (5) (6) (7)
Effect pearlescent pigments
3206 11 10, Any
or mica pearlescent
3206 11 90, country M/s Rika Technology
1 pigments, excluding effect China PR 14.49%
3206 19 00, including Co. Ltd.
pigments for automotive
3206 49 90 China PR
applications.
Any
M/s Henan Lingbao
country
2 -do- -do- China PR New Materials 16.74%
including
Technology Co. Ltd
China PR
Any
M/s Zhejiang Coloray
country
3 -do- -do- China PR Technology 14.63%
including
Development Co., Ltd
China PR
M/s Jiangsu Pritty
Any
4 -do- -do- China PR New Material 11.18%
country
Co., Ltd.[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 5
including
China PR
Any
Any producer other
country
5 -do- -do- China PR than at SN (1) to (4) 25.76%
including
above
China PR
Any
6 -do- -do- other China PR Any producer 25.76%
country
Note 1: For collection of anti-dumping/countervailing duty measures, -
(a) in case of effect pearlescent pigments or mica pearlescent pigments of natural grade for industrial application,
quantum of countervailing duty shall be equivalent to the difference between amount payable as per column (7)
and antidumping duty payable as per customs Notification No. 13/2023-Cus (ADD), dated 22nd November 2023;
(b) in case of effect pearlescent pigments or mica pearlescent pigments of natural grade for cosmetic application,
since no anti-dumping duty is payable, the quantum of countervailing duty shall be equivalent to the amount
payable as per column (7);
(c) in case of effect pearlescent pigments or mica pearlescent pigments of natural grade for automotive application,
no countervailing duty should be charged; and
(d) in case of effect pearlescent pigments or mica pearlescent pigments of synthetic grade, since no anti-dumping
duty is payable, the quantum of countervailing duty shall be equivalent to the amount payable as per column (7).
Note 2: The customs classification is indicative only and not binding on the scope of the product under consideration.
2. The countervailing duty imposed under this notification shall be levied for a period of five years
(unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette
and shall be payable in Indian currency.
Explanation: – For the purposes of this notification-
(a) the rate of exchange applicable for the purposes of calculation of such countervailing duty
shall be the rate which is specified in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of
the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange
shall be the date of presentation of the bill of entry under section 46 of the said Act.
(b) “CIF value” means the assessable value as determined under section 14 of the Customs Act, 1962
(52 of 1962).
[F. No. CBIC-190349/30/2025-TRU Section-CBEC]
DHEERAJ SHARMA, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.