How to File an Anti-Dumping Duty Petition with the DGTR in India Under the Customs Tariff Act

Kaustav Chowdhury
23 hours ago
10 min read

When imported goods are sold in India at a price below their normal value in the exporting country, and such dumped imports cause or threaten material injury to the domestic industry, Indian manufacturers can seek relief by filing an anti-dumping duty petition with the Directorate General of Trade Remedies (DGTR). The legal framework for anti-dumping investigations in India is contained in Section 9A of the Customs Tariff Act, 1975, read with the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (the "Anti-Dumping Rules").

This guide provides a step-by-step process for filing an anti-dumping petition, from establishing standing and preparing the petition to navigating the investigation timeline, provisional duties, final findings, and sunset reviews.

1. Understanding the Legal Framework

Section 9A of the Customs Tariff Act, 1975 empowers the Central Government to impose an anti-dumping duty on any article that is exported to India at less than its normal value. The duty cannot exceed the margin of dumping, which is the difference between the normal value and the export price of the goods. India follows the "lesser duty rule," meaning the Government is obliged to restrict the anti-dumping duty to the lower of the dumping margin and the injury margin, ensuring that the duty imposed does not exceed the amount necessary to remove the injury caused to the domestic industry.

The DGTR, functioning under the Department of Commerce, Ministry of Commerce and Industry, is the designated authority responsible for conducting anti-dumping investigations. The DGTR's role is to determine whether dumping has occurred, whether the domestic industry has suffered material injury, and whether there is a causal link between the dumped imports and the injury. Based on its findings, the DGTR recommends the imposition of duty to the Ministry of Finance, which issues the formal customs notification.

2. Establishing Standing: The 25% Domestic Production Requirement

Before filing a petition, the applicant must establish that it has standing to bring the case. Under Rule 5(3) of the Anti-Dumping Rules, an application must be made by or on behalf of the "domestic industry," which is defined as domestic producers whose collective output constitutes a major proportion of the total domestic production of the like article.

Two cumulative thresholds must be met for standing.

The applicant producers must account for at least 25% of the total domestic production of the like article. This is a minimum threshold; the petitioner need not represent a majority of domestic production, but its share must be significant enough to provide a reasonable basis for the investigation.
The domestic producers expressly supporting the application must represent more than 50% of the total domestic production of the like article produced by that portion of the domestic industry expressing either support for or opposition to the application. In other words, among those producers who take a position, the supporters must outnumber the opponents.

Domestic producers who are themselves importers of the allegedly dumped article, or who are related to the exporters or importers, may be excluded from the definition of "domestic industry" under Rule 2(b) of the Anti-Dumping Rules. The corporate governance framework of petitioning companies, including the proper appointment and qualification of directors, may be scrutinised by the DGTR to assess the legitimacy of the petitioner.

3. Preparing the Petition: Required Contents and Evidence

The petition must be filed in the prescribed format with the DGTR, containing detailed information and evidence across three broad categories: dumping, injury, and causal link.

Evidence of Dumping: Normal Value and Export Price

The petition must provide evidence that the subject goods are being exported to India at a price below their normal value. The normal value is generally the comparable price at which the like article is sold in the ordinary course of trade in the domestic market of the exporting country. If domestic sales in the exporting country are insufficient (less than 5% of export volume to India) or are not in the ordinary course of trade, the normal value may be constructed using the cost of production plus a reasonable amount for selling, general, and administrative expenses (SGA) and profits. Alternatively, the price at which the like article is exported to an appropriate third country may be used.

The export price is the price at which the goods are exported to India. If the export price is unreliable (for instance, because the exporter and importer are related parties), the DGTR may construct the export price on the basis of the price at which the imported goods are first resold to an independent buyer in India, with appropriate adjustments for costs, duties, and margins.

Evidence of Injury to Domestic Industry

The petition must demonstrate that the dumped imports have caused or are threatening material injury to the domestic industry, or are materially retarding the establishment of a domestic industry. Injury indicators that must be addressed include the volume of dumped imports (absolute increase and increase relative to domestic production or consumption), the effect on prices (price undercutting, price depression, and price suppression), and the consequent impact on the domestic industry's economic indicators such as production output, capacity utilisation, sales volume, market share, profits, return on investment, cash flow, inventories, employment, wages, growth, and ability to raise capital.

Evidence of Causal Link

The petitioner must establish a causal link between dumped imports and the injury suffered. The DGTR will examine whether other factors (changes in demand, technology shifts, competition between domestic producers, or export performance) contributed to the injury. Injury attributable to these other factors must not be attributed to dumped imports.

4. Filing the Petition and Initiation of Investigation

The petition is filed with the DGTR in both confidential and non-confidential versions. The non-confidential version must contain a meaningful summary of the confidential information to enable interested parties to prepare their responses. The DGTR reviews the application for adequacy of evidence under Rule 5. If the DGTR is satisfied that there is sufficient evidence to justify the initiation of an investigation, it issues a formal notification of initiation, which is published in the Official Gazette.

It is important to note that the DGTR may also initiate an investigation suo motu (on its own motion) under Rule 5(4) if it has sufficient evidence of dumping, injury, and causal link from credible sources such as customs authorities. However, the vast majority of investigations are initiated on the basis of petitions filed by the domestic industry.

5. Investigation Process and Timeline

Once the investigation is initiated, the DGTR follows a structured process with defined timelines.

Questionnaires and Responses

The DGTR issues detailed questionnaires to all interested parties, including foreign exporters, foreign producers, Indian importers, and domestic producers who are not part of the petitioning group. Exporters receive questionnaires seeking detailed information on their domestic sales, export sales to India, cost of production, and corporate structure. Importers receive questionnaires on their purchases, resale prices, and end-use of the imported goods. Responses must typically be submitted within 30 days of receipt, with extensions available on request (usually up to 15 additional days).

Oral Hearings and Verification Visits

The DGTR provides all interested parties an opportunity to present their views through oral hearings. The authority may also conduct on-site verification visits to the premises of domestic producers, exporters, and importers to verify the accuracy of the data submitted in questionnaire responses. Non-cooperation by an exporter or importer may result in the DGTR relying on "facts available" (also known as "best information available"), which typically results in a higher dumping margin for the non-cooperating party.

Investigation Timeline

Under Rule 17 of the Anti-Dumping Rules, the investigation must normally be concluded within 12 months from the date of initiation, with a maximum outer limit of 18 months. However, in practice, investigations in India have sometimes taken longer due to the complexity of the case, the number of interested parties, and administrative delays.

6. Provisional Anti-Dumping Duty

During the investigation, the DGTR may recommend the imposition of a provisional anti-dumping duty if it makes a preliminary determination that dumping is occurring and is causing injury. Provisional duty can be imposed at any time after 60 days from the date of initiation of the investigation, and it remains in force for a period not exceeding six months (extendable to nine months in specific circumstances under Rule 13 of the Anti-Dumping Rules).

The provisional duty is levied by the Ministry of Finance through a customs notification. Importers must pay the provisional duty as a cash deposit or furnish a bank guarantee. If the final determination results in a duty lower than the provisional amount, the excess is refunded. If the final duty is higher, only the provisional amount is collected for the provisional period.

7. Final Findings and Imposition of Definitive Duty

At the conclusion of the investigation, the DGTR issues its final findings, which include the determination of the normal value, export price, and dumping margin for each exporter or producer; the assessment of injury to the domestic industry; the establishment of a causal link between dumped imports and injury; and the recommendation of the anti-dumping duty rate. The final findings are published in the Official Gazette and on the DGTR website.

The recommendation is forwarded to the Ministry of Finance, which has the discretion to accept, modify, or reject it. If accepted, the Ministry issues a customs notification under Section 9A(1) of the Customs Tariff Act imposing the definitive anti-dumping duty. The duty is typically imposed on a per-unit basis (expressed in US dollars per metric tonne or as a percentage of the CIF value) and applies to all imports of the subject goods from the identified countries.

8. Duration, Sunset Review, and Mid-Term Review

A definitive anti-dumping duty remains in force for a period of five years from the date of imposition, unless revoked earlier. Before the expiry of the five-year period, the domestic industry may file a sunset review application under Section 9A(5) of the Customs Tariff Act and Rule 23 of the Anti-Dumping Rules, requesting the continuation of the duty for a further period.

In a sunset review, the DGTR examines whether the expiry of the anti-dumping duty is likely to lead to the continuation or recurrence of dumping and injury. The review follows a process similar to the original investigation, including questionnaires, hearings, and verification visits. If the DGTR concludes that removal of the duty would likely result in the recurrence of dumping and injury, it recommends the continuation of the duty for an additional five-year period.

Interested parties may also request a mid-term review under Rule 23(1A) if circumstances change materially, or seek a new shipper review under Rule 22 to establish individual duty rates for exporters not covered in the original investigation.

9. Judicial Review and Appeals

The DGTR's final findings and the Government's customs notification imposing the anti-dumping duty are subject to judicial review. Appeals against anti-dumping duty orders lie before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), with further appeals to the Supreme Court on questions of law. Interested parties may also challenge the DGTR's findings through writ petitions before the High Courts, although courts generally exercise restraint in interfering with the DGTR's factual determinations.

It is worth noting that the Bombay High Court has recently held that the pendency of a writ petition is no bar to the provisional assessment of imports following the DGTR's final recommendation, reinforcing the effectiveness of the anti-dumping relief mechanism. Affected stakeholders, including domestic producers and investors, may also consider filing complaints with SEBI if dumped imports are being facilitated by market manipulation or unfair trade practices affecting listed companies in the same sector.

10. Practical Tips for Petitioners

Filing an anti-dumping petition is a resource-intensive exercise. The following practical considerations can improve the likelihood of a successful outcome.

Build a Coalition Early: If your individual production share does not meet the 25% threshold, identify and approach other domestic producers to join the petition. Industry associations can play a valuable role in coordinating support.
Collect Import Data Systematically: Use customs import data (available from the DGCIS or private trade data providers) to track the volume and value of imports over the injury investigation period (typically three years plus the period of investigation). Ensure the data is classified at the correct HS Code level.
Maintain Robust Cost Records: The DGTR will scrutinise the petitioner's cost of production data to assess injury. Ensure that your cost accounting records are complete, consistent, and in accordance with the Cost and Works Accounts rules. Companies should ensure proper board-level oversight of financial reporting to support the credibility of injury data.
Engage Specialised Legal Counsel: Anti-dumping investigations are technically complex and require expertise in trade remedy law, economics, and accounting. Engage counsel with specific experience before the DGTR.
Prepare for Confidentiality Challenges: The balance between protecting commercially sensitive information and providing meaningful non-confidential summaries is a recurring challenge. Prepare robust non-confidential versions that comply with the DGTR's disclosure requirements while protecting genuinely sensitive data. Employees who become aware of unfair trade practices or circumvention of anti-dumping duties may use the company's whistleblower complaint mechanism to bring such matters to the attention of relevant authorities.
Consider GST and customs duty compliance implications of the anti-dumping duty on your import operations if you are also an importer of the subject goods or related products.

11. Related Trade Remedies: CVD and Safeguard Duties

The Customs Tariff Act also provides for Countervailing Duties (CVD) under Section 9 to offset foreign government subsidies, and Safeguard Duties under Section 8B when a surge in imports causes serious injury regardless of dumping. The DGTR handles all three types of investigations, and domestic producers should assess which remedy is most appropriate. In some cases, pursuing multiple remedies simultaneously may be advisable.

Where cross-border elements are involved, companies should also be aware of the FEMA framework governing foreign investment and trade and ensure that anti-dumping duty assessments are factored into their import costing and regulatory compliance obligations.

12. The Role of Dispute Resolution

Anti-dumping determinations are also subject to challenge under the WTO Dispute Settlement Mechanism if an exporting country considers India's measures inconsistent with Article VI of GATT 1994. India has participated in several WTO anti-dumping disputes as both complainant and respondent. Where contractual disputes arise between domestic and foreign parties in this context, the principles of international arbitration and dispute resolution may be relevant.

Conclusion

Filing an anti-dumping petition is a complex, evidence-intensive process that requires careful preparation across multiple dimensions: establishing standing with at least 25% of domestic production, compiling robust evidence of dumping margins, documenting material injury through economic indicators, and demonstrating a causal link between dumped imports and the injury suffered. The investigation itself, conducted by the DGTR over 12 to 18 months, involves detailed questionnaires, oral hearings, and verification visits. By understanding the procedural framework under Section 9A of the Customs Tariff Act and the Anti-Dumping Rules, domestic producers can effectively use the anti-dumping mechanism to protect themselves against unfairly priced imports and restore competitive conditions in the Indian market.