Countervailing Duty on Calcium Carbonate Filler Masterbatch from Vietnam: A Complete Analysis of Notification No. 4/2026-Customs (CVD)

Background and Context

The Central Government, through the Ministry of Finance (Department of Revenue), has formally imposed definitive countervailing duty (CVD) on imports of Calcium Carbonate Filler Masterbatch originating in or exported from Vietnam. This measure has been enacted via Notification No. 4/2026-Customs (CVD) dated September 23, 2026, bearing G.S.R. 841(E), and represents the culmination of a structured trade remedy investigation process that concluded earlier in 2026.

Calcium Carbonate Filler Masterbatch is classified under tariff item 3824 99 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). The product finds widespread application in the plastics manufacturing sector, and its subsidised importation from Vietnam had been flagged as a cause of material injury to the Indian domestic industry.

This notification marks a significant trade remedy development and has direct implications for importers, customs authorities, and domestic producers alike. Understanding its provisions, the applicable duty rates, and the conditions governing their collection is essential for regulatory compliance.

Designated Authority's Final Findings

The foundation of this notification rests upon the final findings of the designated authority, published in the Gazette of India, Extraordinary, Part I, Section 1, vide notification F. No. 6/39/2024-DGTR, dated June 24, 2026.

Upon completion of the investigation, the designated authority returned the following key conclusions:

  • Subsidised Export Pricing: The subject goods — Calcium Carbonate Filler Masterbatch — were found to have been exported to India from Vietnam at subsidised prices, meaning that Vietnamese producers had received government support or financial contributions that artificially reduced the export price.

  • Material Injury to Domestic Industry: The domestic industry manufacturing comparable goods in India was found to have suffered material injury as a direct consequence of these subsidised imports from Vietnam.

  • Recommendation for Definitive CVD: Based on the above findings, the designated authority recommended the imposition of definitive countervailing duty to neutralise the effect of the subsidy and address the injury sustained by the domestic producers.

The Central Government exercised its powers under the following statutory provisions to give effect to the designated authority's recommendations:

  • Sub-sections (1) and (6) of Section 9 of the Customs Tariff Act, 1975
  • Rules 20 and 22 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidised Articles and for Determination of Injury) Rules, 1995

These provisions collectively empower the government to impose definitive countervailing duty once the designated authority has established the existence of a subsidy and consequent injury to the domestic industry.

Producer-Wise Countervailing Duty Rates

The notification prescribes specific CVD amounts per metric tonne (MT) for individual named producers, with a residual rate applicable to all other cases. The rates are denominated in USD and are payable in Indian currency at the exchange rate notified under Section 14 of the Customs Act, 1962 (52 of 1962).

The following table reflects the duty structure as set out in the notification: