Ruling on Anti-Dumping Duty Applicability for Titanium Dioxide
The Customs Authority for Advance Ruling (CAAR), Mumbai, has delivered a significant decision regarding the applicability of Anti-Dumping Duty (ADD) on imports of Titanium Dioxide. In the matter of In re Nemi Chem, the Authority examined whether ADD is leviable when the underlying notification has been set aside by a High Court, and whether the specific use of the material in toilet soaps falls under the exclusion category of "skin-care."
Factual Background
The applicant, a partnership firm operating as a chemical trader, sought an advance ruling regarding the customs liability on Titanium Dioxide imported from China PR. The assessee imports this chemical substance to supply it as a raw material to various industries. The primary clientele includes major FMCG conglomerates engaged in the manufacturing of skin-care products, specifically toilet soaps, as well as other industrial dealers.
The core issue arose from Notification No. 12/2025 (NN 12/2025), which imposed ADD on Titanium Dioxide originating from China. However, this notification provided specific exclusions for certain end-uses, including applications in food, pharmaceuticals, textiles, and "skin-care" (specifically cosmetics and sunscreen lotions). To streamline the import of these excluded categories, Circular No. 16/2025 was introduced, allowing importers to make electronic declarations in the Bill of Entry.