India 2025 Anti-Dumping Duty: 27–63% Tariffs vs Huarong’s 0% Rate

2025-07-01 14:18:38


India’s 2025 anti-dumping ruling has introduced a significant shift in how plastic processing machinery is sourced across global markets. With tariffs now imposed on certain machines originating from China and Taiwan, manufacturers are reassessing cost structures, risk profiles, and supplier reliability. Among the exporters reviewed, Huarong Plastic Machinery Co., Ltd. was classified with a 0% duty rate. This article provides a factual overview of the policy background, explains how duties were determined, and outlines considerations for buyers navigating this new trade environment.

Understanding Anti-Dumping: From WTO Rules to National Enforcement

To understand India’s decision, it is essential first to recognize how anti-dumping (AD) measures fit into the broader framework of global trade. The World Trade Organization (WTO) allows its members to implement AD duties when certain conditions are met.

 

What Anti-Dumping Means in WTO Terms

According to the WTO Anti-Dumping Agreement, dumping occurs when an exported product is sold at a price lower than its normal value in the market where it is sold. This can refer to the price in the domestic market or the cost of production plus a reasonable margin. When such practices cause material injury to the importing country’s industry, anti-dumping measures may be applied.

A country may impose anti-dumping duties (ADDs) if it establishes:

  • The presence of dumping,
  • Material injury to the domestic industry, and
  • A direct causal link between the two.

 

DGTR’s Investigation Process

In India, the Directorate General of Trade Remedies (DGTR) is responsible for conducting anti-dumping investigations. Its approach is guided by structured procedures aligned with WTO norms. These procedures include data collection, on-site verifications, and margin calculations to ensure objectivity.

India’s DGTR follows a structured process that includes:

  • Accepting petitions from domestic manufacturers,
  • Sending questionnaires to exporters and verifying data on-site,
  • Calculating a dumping margin (i.e., the percentage gap between export price and normal value),
  • Recommending provisional duties, followed by definitive ADDs valid for five years.
DGTR’s Investigation Process

 

How a Duty Is Calculated

For example, if a 650-ton injection molding machine sells domestically for USD 220,000 and is exported to India at USD 160,000 CIF, the dumping margin is calculated at 27.3%. This figure may serve as the basis for an anti-dumping duty. Exporters that can demonstrate price alignment and disclose all necessary data may be eligible for a lower or 0% rate, as was the case with Huarong.

 

 

India’s 2025 Anti-Dumping Order on Plastic Processing Machines

India’s final decision was based on a multi-year investigation and input from both domestic stakeholders and foreign exporters. The outcome includes a classification of machine types, origin countries, and applicable tax rates.

 

Scope and Official Documents

The anti-dumping duties apply to plastic processing machines (PPMs) with clamping forces between 40 and 1,500 tons. Imports from China and Taiwan in fully assembled, CKD, or SKD forms are included.

Exemptions were made for certain types of equipment deemed outside the scope.

  • Final Finding: DGTR Notification F. No. 6/21/2023-DGTR (27 March 2025)
  • Implementation: Ministry of Finance Notification No. 21/2025-Customs (ADD) (26 June 2025)

Excluded: all-electric machines, vertical injection machines, blow molders, equipment outside the tonnage range, used/refurbished units, and loose parts.

DGTR Anti-Dumping Scope

 

Producer-Specific Duty Matrix (Condensed)

The following table summarizes duty rates by exporter classification, based on India’s official notification.

CategoryCountryDuty Rate*
Generic Chinese exportersChina63%
Select cooperating Chinese producersChina27–48%
Select Taiwanese producersTaiwan39–53%
Huarong Plastic Machinery Co., Ltd.Taiwan0%

Data sourced from Notification No. 21/2025-Customs. Detailed breakdowns are available in the official annex.

Duty Comparison Bar Chart

 

 

Why Huarong Earned 0% Duty: A Result of Transparent Cooperation

DGTR’s investigation applied consistent and objective criteria. Huarong was one of the manufacturers that demonstrated data accuracy, price transparency, and alignment with domestic market values.

 

DGTR’s Fair and Structured Evaluation Principles

DGTR’s evaluation covered:

  • Domestic sales conducted in the ordinary course of trade,
  • Verified production costs and financial documentation,
  • Export transactions and price structures,
  • Absence of prohibited subsidies.

Such a comprehensive approach ensures fair treatment and encourages compliance.

DGTR + WTO Compliance Visual

 

Procurement Implications

For procurement teams, duty classification significantly impacts the total landed cost. Sourcing from a duty-exempt supplier like Huarong may offer advantages, including:

  • Reduced import tax exposure,
  • Fewer documentary and customs complications,
  • More stable pricing over multi-year planning horizons.

 

 

Real-World Cost Implications for Buyers

The following example shows how duties impact purchasing budgets for importers.

 

Duty-Loaded vs Duty-Free

  • Generic Chinese brand, 500-ton press: USD 180,000 CIF + 63% ADD = USD 293,400 landed
  • Huarong, comparable machine: USD 185,000 CIF + 0% ADD = USD 185,000 landed

A significant difference in cost may be attributed entirely to the applied duty rate.

 

Supply-Chain Adjustments Under ADD

Buyers are reassessing their sourcing strategies by:

  • Focusing on verified 0%-duty suppliers,
  • Evaluating equipment types outside the scope (e.g., vertical or all-electric),
  • Segmenting RFQs to reduce risk concentration.

 

Planning for Policy Cycles

Anti-dumping duties are valid for five years and subject to review. Diversifying supplier portfolios and engaging with compliant partners may reduce long-term volatility.

 

 

How Buyers Can Optimise Sourcing Under Anti-Dumping Rules

Procurement managers can use the following steps to guide their decision-making:

  1. Verify duty rates through India’s Customs Notification No. 21/2025.
  2. Recalculate TCO to include duties, logistics, service, and operational costs.
  3. Allocate savings toward productivity upgrades or automation, including platforms like Huarong HFM.
  4. Monitor upcoming policy reviews and maintain communication with qualified exporters.

 

 

Huarong’s Broader Strategic Edge

Beyond classification, Huarong continues to focus on technical development and service support.

 

Advanced Technology Portfolio

 

 

Global Partnerships and Support

  • Service hubs in key markets,
  • On-site training and commissioning teams,
  • Export compliance processes tailored to customs documentation and audits.

 

 

Conclusion: A Considered Approach in a Post-2025 Landscape

India’s 2025 anti-dumping policy has introduced measurable changes in procurement decisions for plastic processing equipment. Working with duty-exempt and data-transparent suppliers can help buyers control costs while maintaining regulatory alignment.

While each procurement decision should be based on company-specific priorities, Huarong’s 0% classification and emphasis on compliance make it a reliable option worth evaluating in the context of long-term sourcing plans.

 

Ready to Plan Your Next Project?

Contact Huarong to explore duty-free options tailored to your production goals.

 

 

Source References

This article is based on official government releases and publicly available materials:

Readers are encouraged to consult these sources for verification and further insights.

 

 

Contributor - Wei