Corrigendum Notification of CVD of mica

## Report on Countervailing Duty Investigation Amendment Concerning Effect Pearlescent Pigments **1. Executive Summary:** This report analyzes a corrigendum notification amending a final finding in a countervailing duty investigation concerning imports of effect pearlescent pigments or mica pearlescent pigments. The core purpose of this amendment is to clarify the collection of countervailing duties based on the type and application of the pigments, particularly in relation to the existence of antidumping duties. The key finding is the introduction of differentiated countervailing duty collection procedures based on whether the pigments are natural or synthetic grade, and their application (industrial, cosmetic, or automotive). This clarification directly impacts importers and users of these pigments. **2. Introduction:** This report aims to provide a comprehensive overview of a corrigendum notification issued by the Directorate General of Trade Remedies (DGTR), Department of Commerce, Ministry of Commerce and Industry, concerning countervailing duties on effect pearlescent pigments or mica pearlescent pigments. The analysis is based solely on the text provided in the notification. **3. Policy Overview:** * **Amendment:** This notification amends the Final Finding Notification F. No. 682024 DGTR dated March 28th 2025, related to a countervailing duty investigation. * **Core Objective(s):** The amendment's objective is to clarify the implementation of countervailing duties on effect pearlescent pigments by specifying how the duty should be calculated or applied based on the pigment's grade (natural or synthetic) and its intended application (industrial, cosmetic, or automotive). **4. Background and Rationale:** The amendment likely arises due to ambiguities or practical difficulties encountered in applying the original countervailing duty determination. The *provided text* suggests the need for more precise rules to address situations where antidumping duties also exist and to differentiate the application of countervailing duties based on the end-use of the pigments. The different applications probably exhibit different degrees of injury to the domestic industry. **5. Key Provisions / Changes:** This corrigendum notification substitutes the clarification issued below the duty table of the original notification with the following provisions: * **Change:** The method of countervailing duty collection is differentiated based on the grade (natural or synthetic) and application (industrial, cosmetic, or automotive) of the pigments. * **New Rule/Provision:** * **Natural Grade, Industrial Application:** Countervailing duty is the *difference* between the amount payable as per "column 7" (presumably the original countervailing duty rate) and the antidumping duty payable as per customs Notification No. 132023 Cus ADD, dated 22nd November 2023. * **Natural Grade, Cosmetic Application:** Countervailing duty is equivalent to the amount payable as per "column 7," as no antidumping duty is payable. * **Natural Grade, Automotive Application:** No countervailing duty should be charged. * **Synthetic Grade:** Countervailing duty is equivalent to the amount payable as per "column 7," as no antidumping duty is payable. * **Effect of Change:** This amendment introduces a nuanced approach to countervailing duty collection, potentially reducing the overall duty burden for certain applications (industrial, natural grade) by accounting for existing antidumping duties, and eliminating it entirely for automotive applications of natural grade pigments. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Importers of effect pearlescent pigments or mica pearlescent pigments. * Manufacturers using these pigments in industrial, cosmetic, and automotive applications. * Customs authorities responsible for collecting duties. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Trade Remedies (DGTR) is the responsible agency. Customs authorities are responsible for the actual collection of duties. * **Timelines/Procedures:** The amendment is effective from June 16th, 2025. The notification requires customs officials to apply the specified rules when assessing countervailing duties. * **Amendment-Specific Aspects:** Customs officials need to determine the grade (natural or synthetic) and application (industrial, cosmetic, or automotive) of the imported pigments to apply the correct countervailing duty calculation. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Reduced Duty Burden in Some Cases:** Lower overall duty burden for industrial applications of natural grade pigments where both antidumping and countervailing duties were previously applicable. * **Elimination of Duty in Some Cases:** Complete elimination of countervailing duties for natural grade pigments used in automotive applications. * **Increased Clarity and Predictability:** Enhanced clarity and predictability in the application of countervailing duties, reducing potential disputes and streamlining customs procedures. * **Potential for Shift in Import Composition:** Depending on price differentials and duty impacts, there could be a shift in the types of pigments imported (e.g., more automotive grade, or a shift from synthetic to natural if the natural grade duties are sufficiently lower). **9. Conclusion:** The corrigendum notification provides crucial clarifications regarding the application of countervailing duties on effect pearlescent pigments. By differentiating the duty based on the grade and application of the pigments, this amendment aims to refine the original countervailing duty determination and ensure a more targeted and equitable application of trade remedies. Understanding these changes is essential for importers, manufacturers, and customs officials to ensure compliance and avoid potential trade disruptions.

Key Entities Referenced