India slaps five-year anti-dumping duty on Chinese aluminium foil, chemicals
New Delhi: India has imposed five-year anti-dumping duties on imports of Chinese aluminium foil and acetonitrile from China, Russia, and Taiwan, according to a government notification, after trade investigations found that under-priced shipments were harming domestic manufacturers.
The measures, replacing earlier provisional tariffs, are part of India's broader effort to curb cheap imports and protect local producers.
'This is a strategic sector linked to packaging, defence, and energy," said Abhash Kumar, trade expert and assistant professor of economics at Delhi University. 'The measure sends a strong signal about India's intent to safeguard its value-added aluminium manufacturing base."
Read this | India's quality crusade: Stricter standards aim to boost manufacturing, curb substandard imports
The Directorate General of Trade Remedies (DGTR), which concluded the investigation in March, found that imports of aluminium foil from China were being priced significantly below normal value, causing substantial damage to Indian producers. Domestic companies including Hindalco and Jindal Aluminium had petitioned for the duties, citing rising imports over the past two years that were eroding margins and impacting capacity utilisation.
Five-year tariffs on aluminium, chemicals
The definitive anti-dumping duty on aluminium foil now ranges from $479 to $721 per metric tonne, effective from 17 March 2025. This replaces provisional duties imposed in March that ranged from $619 to $873 per tonne.
While the duty bands are lower, the shift from a six-month provisional tariff to a five-year definitive measure signals India's decision to lock in long-term trade protection for domestic manufacturers. A general duty of $721 per tonne applies to producers not specifically listed, according to the government notification issued late Thursday.
During the period of investigation from April 2022 to September 2023, the combined capacity and production of the applicant domestic producers stood at 132,140 metric tonnes and 69,572 metric tonnes, respectively—representing about 45% of India's total aluminium foil capacity and 54% of total production. National capacity during that period was 289,735 metric tonnes, with total production at 126,495 metric tonnes.
Despite a 106% rise in domestic consumption, imports from China surged by 178%, while Indian producers' sales rose only 29%, indicating intense import-led pricing pressure. According to World Bank trade data, India imported 140,234 tonnes of aluminium foil from China during the first eleven months of 2024, up from 121,272 tonnes during the same period a year earlier.
Producers impacted include Chinese firms Henan Mingtai Technology, Sunho New Materials, and Jiangsu Dingsheng. The duties cover aluminium foil of up to 80 microns in thickness, imported under multiple tariff lines. Certain specialised aluminium foil products used in capacitors, cooling systems, aluminium panels, beer bottle necks, and adhesive tapes are excluded.
Separately, India also imposed five-year anti-dumping duties on acetonitrile imports after finding that exporters from China, Russia, and Taiwan were selling below fair value. Acetonitrile is widely used as a solvent in pharmaceuticals, agrochemicals, and research laboratories.
The duties on acetonitrile, notified on Thursday, range from $202 to $481 per metric tonne, depending on the exporter. The highest duty of $481 per tonne applies to Chinese suppliers not individually named, while lower rates apply to Nantong Liyang Chemical, Shandong Kunda Biotechnology, and Weifang Zhonghui Chemical. Similar duty levels were set for exporters from Russia and Taiwan.
Read this | Centre eyes tighter customs rules to curb smuggling by 'import carriers'
India's total annual demand for acetonitrile is estimated at 25,000 to 27,000 tonnes, according to IMARC Group, a research firm. Of that, domestic production accounts for around 15,000 to 18,000 tonnes, with imports covering 12,000 to 15,000 tonnes.
India's domestic acetonitrile production is currently limited to a few players, including Jubilant Ingrevia and Rashtriya Chemicals and Fertilizers Ltd (RCF). Industry participants had complained that the influx of cheap imports was squeezing margins and lowering capacity utilisation.
Part of broader trade push
Both duties will remain in place for five years unless modified or revoked following review. They are payable in Indian rupees and calculated using the Reserve Bank of India's exchange rates on the date of entry.
The actions reflect a broader trend in India's trade policy, which has seen a steady rise in anti-dumping cases, particularly involving Chinese exports across sectors including steel, chemicals, consumer goods, and electronics.
In 2024, the DGTR launched 43 anti-dumping investigations and reviews, of which 34—or nearly 79%—involved imports from China. In March 2025 alone, DGTR issued final findings in 13 cases, 12 of which targeted Chinese products.
India is also moving to tighten controls on imports of substandard paper products, particularly from China, with the Department for Promotion of Industry and Internal Trade (DPIIT) in the process of introducing a new Quality Control Order, Mint reported earlier.
Read this | India to crack down on substandard Chinese paper imports amid rare-earths row
The decision also comes shortly after the US raised its tariffs on aluminium and steel imports to 50% from 25%, applicable to all trading partners including India and China.
'The higher duty imposed by the US may be a reason to put a check on excessive imports of aluminium from China," said Arun Kumar Garodia, former chairman of the Engineering Export Promotion Council (EEPC).
Also read | US-China trade war blows hot and cold for India
The aluminium duty decision comes amid broader concerns about China's control over critical raw materials. Beijing recently restricted exports of rare earth magnets to India, further complicating trade relations between the two countries.
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