India has introduced a new countervailing (CV) duty on imports of saturated fatty alcohols coming from Indonesia, Malaysia and Thailand after an investigation determined these products injured the domestic industry, according to India's Ministry of Finance.
On 4 May, the ministry of finance finalized filing of CV duties on saturated fatty alcohols imported from the three countries with immediate effect for a period of five years, according to a notice received by Argus and published in the Gazette of India. The rates of the CV duties range from 3-30pc, depending on country and company, and affects many cuts of saturated fatty alcohols, excluding C8 fatty alcohols.
Indian surfactant producers said the imposition of the CV duty will negatively affect domestic producers. Fatty alcohols are widely used in the manufacturing of surfactants, personal care, home care, pharmaceutical and agriculture-related end products.
"Imposition of CV duties on saturated fatty alcohols is very unfortunate and will hurt Indian surfactant industry, causing inflation," Manoj Jha, a convener at Indian Surfactant Group (ISG), told Argus.
India's annual retail inflation rate rose above the Reserve Bank of India's (RBI) upper targeted limit of 6pc to 6.52pc in January, according to data released by the government, but fell back below that limit in March for the first time since October, easing to 5.66pc, due to a decline in food costs.
On 8 February 2022, the Ministry of Commerce and Industry of India initiated the investigation after personal care producer VVF India (VVF) filed an application on behalf of the domestic industry for imposition of CV duty on imports of saturated fatty alcohols coming from Indonesia, Malaysia and Thailand with a carbon chain length of C10, C12, C14, C16 and C18, including single saturated fatty alcohols and their blends.
A sunset review of a separate anti-dumping investigation concerning imports of saturated fatty alcohols originating in or exported from Indonesia, Malaysia, Thailand and Saudi Arabia was initiated in February 2023 and is still ongoing, according to the Directorate General of Trade Remedies of India.
India's current anti-dumping duties (ADD) in place for saturated fatty alcohols are set to expire on 25 May 2023. The ADDs were put in place on 25 May 2018.
According to the final findings, CV duties on imports coming from Indonesia would depend on the company and range between 4pc and 30pc of the cost, insurance and freight price minus ADD payable, if any.
For imports coming from Malaysia, the CV duty would range between 3pc and 11pc, depending on the company, and would be in addition to the ADD payable. As for Thailand imports, the quantum of CV duty would range between 3pc and 11pc depending on the company minus ADD payable.
"ISG members will appeal against this regulation in Customs Excise and Service Tax Appellate Tribunal (CESTAT) as the central government of India has ignored user industry concerns by recommending this duty," Manoj Jha told Argus.
