In a significant policy update affecting the chemical, manufacturing, and paint sectors, the Central Board of Indirect Taxes & Customs (CBIC) has issued Instruction No. 33/2025-Customs, dated 05 December 2025, concerning the collection of anti-dumping duty on imports of titanium dioxide originating in or exported from China PR. This directive comes following a major judicial decision delivered by the Hon’ble High Court at Calcutta in September 2025.
Background of the Case
The matter stems from the High Court’s order dated 22 September 2025 in India Paint Association vs. Union of India & Others (WPO 148 of 2025). In this ruling, the Court quashed Notification No. 12/2025-Customs (ADD) — issued earlier on 10 May 2025 — which had imposed anti-dumping duty on titanium dioxide imported from China.
Titanium dioxide is a key raw material used extensively in the paint, plastic, paper, coatings, cosmetics, and related industries. Its pricing and availability have a significant impact on downstream manufacturing sectors. The anti-dumping duty, originally introduced to protect domestic producers from unfairly low-priced imports, had been a matter of dispute among industry stakeholders—particularly those dependent on imports for consistent supply and competitive pricing.
CBIC’s Latest Instruction
In light of the High Court’s ruling, CBIC has formally directed all Customs formations to immediately cease the collection of anti-dumping duty on titanium dioxide imported from China PR. The instruction has been circulated to:
- All Principal Chief Commissioners and Chief Commissioners of Customs
- Commissioners of Customs and Customs (Preventive)
- Director Generals under CBIC
This directive ensures uniform compliance across all ports and customs zones in the country. The communication, issued by Amreeta, Director (TRU-I), clarifies that the earlier levy no longer holds legal effect and must not be collected henceforth.
Impact on the Industry
The removal of the anti-dumping duty is expected to have multiple implications:
✔ Cost Relief for Import-Dependent Companies
Manufacturers in the paint, plastic, and chemical sectors—who heavily rely on titanium dioxide—may benefit from lower import costs. This could improve profit margins or lead to more stable pricing for end consumers.
✔ Supply Chain Stability
Without the additional duty, companies may find it easier to secure imports, ensuring smoother operations and reducing the risk of supply disruptions.
✔ Competitive Market Dynamics
Domestic producers may face increased competition due to cheaper imports; however, the High Court’s decision implies that the previous duty framework did not meet legal scrutiny.
Legal and Administrative Clarity
With CBIC’s instruction, any ambiguity regarding the applicability of anti-dumping duty on titanium dioxide from China has been resolved. This ensures transparency and provides clear guidance to customs officers and importers alike.
Conclusion
The directive marks an important regulatory shift and underscores the influence of judicial decisions on trade policy. For industry stakeholders, staying updated with such changes is crucial, as they directly affect import strategy, pricing, and overall business planning. As always, businesses should consult their compliance teams or advisors to ensure alignment with the latest customs regulations.