Extension of Anti-Dumping Duty on Normal Butanol Imports from Select Countries

The Central Government has formally prolonged the existing anti-dumping duty on imports of “Normal Butanol or N-Butyl Alcohol” originating in or exported from the European Union, Malaysia, Singapore, South Africa and the United States of America. This continuation, notified through Notification No. 02/2026–Customs (ADD) dated 8 January 2026, ensures that the duty remains in force during the ongoing sunset review, thereby maintaining a protective framework for the domestic industry.

Normal Butanol or N-Butyl Alcohol is classified under tariff item 2905 13 00 of the First Schedule to the Customs Tariff Act, 1975. The earlier levy of anti-dumping duty on this product had been imposed through Notification No. 21/2021-Customs (ADD) dated 12 April 2021. The recent amendment inserts a new paragraph clarifying the extended validity period of the duty.

Statutory basis for anti-dumping duty

The extension has been made by invoking the powers conferred under:

  • Section 9A(1) and Section 9A(5) of the Customs Tariff Act, 1975 (51 of 1975); and
  • Rule 18 and Rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (commonly known as the Anti-Dumping Rules, 1995).

Under Section 9A, the Central Government may impose anti-dumping duty on imported goods that are found to be dumped and causing material injury to the domestic industry. Sub-section (5) read with Rule 23 further allows for the continuation of such duty during the pendency of a sunset review, to avoid a gap in protection.

Role of the Designated Authority

The Designated Authority under the Directorate General of Trade Remedies (DGTR) plays a central role in:

  • Initiating investigations and sunset reviews
  • Assessing whether continued imposition of duty is necessary
  • Recommending extension, modification or discontinuation of anti-dumping duty

In the present case, the Designated Authority issued initiation Notification No. 7/16/2025-DGTR dated 27 September 2025, commencing a sunset review concerning continuation of anti-dumping duty on imports of Normal Butanol or N-Butyl Alcohol from the identified countries.

Trigger for the Extension: Sunset Review Initiation

Initiation of sunset review

The initiation notification dated 27 September 2025, published in the Gazette of India, Extraordinary, Part I, Section 1, was issued in terms of Section 9A(5) of the Customs Tariff Act, 1975 read with Rule 23 of the Anti-Dumping Rules, 1995. This sunset review covers:

  • Product: “Normal Butanol or N-Butyl Alcohol”
  • Tariff classification: 2905 13 00
  • Origin/export: European Union, Malaysia, Singapore, South Africa, United States of America
  • Earlier imposition: Notification No. 21/2021-Customs (ADD) dated 12 April 2021

The review aims to determine whether the cessation of anti-dumping duty would likely result in the continuation or recurrence of dumping and consequent injury to the domestic industry.

Request for continuation of duty

As part of the sunset review process, the Designated Authority requested the Central Government to extend the existing anti-dumping duty under Section 9A(5). This request is intended to ensure that protection remains in force while the Authority examines:

  • Past dumping and injury patterns
  • Likelihood of future dumping if the duty is withdrawn
  • Impact on the domestic industry if protection lapses

On this basis, the Government has decided to keep the duty operative until the completion of the review or until the specified date, unless modified earlier.

Key Features of Notification No. 02/2026–Customs (ADD)

Amendment to principal notification

The current extension has been implemented by way of an amendment to the principal anti-dumping notification: