The decision comes after the Directorate General of Trade Remedies (DGTR) concluded in its final review that withdrawing the duty could trigger a fresh wave of dumped imports, causing material injury to Indian producers. The trade remedies body found that there was a likelihood of the continuation or recurrence of both dumping and injury to the domestic industry if the existing duty was allowed to lapse.
Butyl alcohol is a key industrial chemical used in the manufacture of paints and coatings, solvents, plasticisers and a wide range of other chemical products.
The extended duty is intended to ensure a level playing field for domestic companies while discouraging imports sold at artificially low prices.
Acting on the DGTR’s recommendation, the Finance Ministry has notified the continued levy under the Customs Tariff Act, replacing the earlier anti-dumping notification issued in April 2021.
The duty will apply to imports of normal butanol originating in or exported from the US, Malaysia and South Africa at the prescribed country- and producer-specific rates, and will remain in force for five years unless reviewed earlier.