Countervailing Duty on Aluminium Wire/Wire Rod (9-13 mm) from Malaysia Extended to 23 March 2027

Background and Overview

The Central Government, through the Ministry of Finance (Department of Revenue), has issued Notification No. 3/2026-Customs (CVD) dated 10th June, 2026, bringing about a significant amendment to the existing countervailing duty framework applicable to aluminium wire and wire rods imported from Malaysia. This amendment formally extends the operative period of the countervailing duty levy, ensuring continued protection to domestic industry against subsidised imports.

The original duty imposition was effected through Notification No. 4/2021-Customs (CVD) dated 24th September, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. 662(E). The fresh notification now supplements that existing framework by inserting an additional paragraph that conclusively fixes the sunset date of the duty at 23rd March, 2027.

The notification has been issued in exercise of powers vested in the Central Government under:

  • Sub-sections (1) and (6) of Section 9 of the Customs Tariff Act, 1975 (51 of 1975)
  • Rules 20 and 24 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995

Section 9 of the Customs Tariff Act, 1975 empowers the Central Government to impose countervailing duties on subsidised articles imported into India, where such subsidisation causes or threatens to cause material injury to a domestic industry. Rules 20 and 24 of the Countervailing Duty Rules, 1995 govern the review and continuation of such duties beyond their initial period of imposition.

What is Countervailing Duty (CVD)?

Before examining the specifics of this notification, it is important to understand the nature and purpose of countervailing duties within India's trade remedy framework.

Countervailing Duty (CVD) under trade remedy law is distinct from the erstwhile CVD levied under the now-repealed provisions of the Customs Tariff Act prior to GST implementation. In the current context, CVD under Section 9 of the Customs Tariff Act, 1975 refers to an anti-subsidy measure, imposed on imported goods that have benefitted from financial subsidies provided by the government of the exporting country.

Key characteristics of such duties include: