Customs duty

Anti-dumping, countervailing and safeguard duty: how to check an import before you order

A product can carry a duty that is not in the basic tariff at all. Here is how these trade-remedy duties arise, how much they change your landed cost, and how to check before the order.

Anti-dumping, countervailing and safeguard duty: how to check an import before you order
In short
  • Anti-dumping, countervailing and safeguard duties are extra duties on specified imports, recommended by DGTR and imposed by the Finance Ministry.
  • Rates often vary by named producer and country; the producer on your invoice must match the notification.
  • The duty also raises the IGST base, so landed cost rises by more than the duty itself.

Three duties, three purposes

On top of ordinary customs duty, India can levy extra duties to protect domestic producers from unfair or sudden import surges. All three are separate from basic customs duty and IGST.

DutyTargetsBasisUsually lasts
Anti-dumping (ADD)Goods sold into India below normal valueDGTR finds dumping, injury and a causal linkFive years, extendable after a sunset review
Countervailing (CVD)Goods benefiting from foreign government subsidySubsidy and injury establishedFive years
SafeguardA sudden surge of imports, even if fairly tradedSerious injury or threat to domestic industryShort term: initially up to four years, in total not more than ten

The investigating body is the Directorate General of Trade Remedies (DGTR) under the Commerce Ministry. It recommends; the Finance Ministry decides whether to impose the duty, which then appears as a customs notification.

Complaintdomestic industryDGTR inquirydumping, injury, linkFinal findingsrecommends a dutyFinance Ministrydecides within 3 monthsCustoms notificationduty applies at the portmay accept or declinetypically five years
How a trade-remedy duty is created. Diagram: EXIMnx, free to reuse with a link to this page.

What it does to your landed cost

What an anti-dumping duty adds to a ₹1 lakh import

Illustrative: BCD 10%, SWS 10% of BCD, ADD 25% of assessable value, IGST 18%. Hover or tab to a segment.

What an anti-dumping duty adds to a ₹1 lakh importIllustrative: BCD 10%, SWS 10% of BCD, ADD 25% of assessable value, IGST 18%. Hover or tab to a segment.₹0₹50k₹1 lakh₹1.5 lakh₹2 lakhWithout ADD₹1,30,980With ADD₹1,60,480
Show as a table
ComponentWithout ADDWith ADD
Assessable value₹1,00,000₹1,00,000
Basic customs duty₹10,000₹10,000
Social Welfare Surcharge₹1,000₹1,000
Anti-dumping dutynil₹25,000
IGST₹19,980₹24,480
Landed cost₹1,30,980₹1,60,480
The ADD of ₹25,000 also raises the IGST base, so the total rises by ₹29,500, not ₹25,000. Chart: EXIMnx, free to reuse with a link to this page.

The duty is often charged as a percentage of CIF value, but it can also be a fixed amount per tonne or per unit, or the difference between a floor price and the invoice price. The exact form is in the notification for that product.

How to check before you import

  1. Start with the exact HS code. Duties are set for named products, usually at the 8-digit level, with a description. A product just outside the description is not covered, and one just inside is.
  2. Find the notification for that code and country of origin on the CBIC or DGTR site, and check it is still in force.
  3. Read the producer table. Rates usually differ by named producer and exporter, with a residual rate for others. The producer's name on your invoice and certificate must match the notification.
  4. Check the origin and the route. Many duties are by country of origin or export. Re-routing the goods through a third country is treated as circumvention.
  5. Add it to the cost. Price the duty into your landed cost before you commit to the order.

Duty can be demanded after clearance. If customs finds the goods were covered by a duty that was not paid, it can raise a demand with interest. See customs notices and appeals.

Other levies that sit on the same bill

BCDBasic customs duty from the tariff
SWSSocial Welfare Surcharge on BCD, with exceptions such as ADD and safeguard duty
AIDCAgriculture Infrastructure and Development Cess on specified goods
IGSTCharged on value plus all duties

Where the same goods attract several levies, the order of calculation matters. The bill of entry duty calculator applies them in sequence; do not add percentages by hand.

How EXIMnx helps: EXIMnx's duty calculator layers BCD, surcharge, other levies and IGST on an HS code and shows the landed cost per item before you place the order. See the Import module.

Frequently asked questions

Who recommends anti-dumping duty in India?

The Directorate General of Trade Remedies (DGTR) recommends; the Finance Ministry decides and customs notifies it.

How long does anti-dumping duty last?

Usually five years, extendable after a sunset review.

Does anti-dumping duty change the IGST?

Yes. IGST is charged on value plus all duties, so it raises the IGST base.

Sources and further reading

This guide is a practical overview, not legal or tax advice. Rules, rates and procedures change by notification; confirm against the current text before you act.

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