This CBIC notification, No. 27/2026-Customs (ADD) dated 5th November 2026, initiates provisional assessment for imports of 'Alloy Steel Chisel/tool and Hydraulic Rock Breaker in fully assembled condition', including seven specified assemblies/sub-assemblies/components, when exported from Malaysia.
Key Statutory Clarifications & Analysis
Point 1
This action stems from an anti-circumvention investigation initiated by the Directorate General of Trade Remedies (DGTR) under Section 9A(1A) of the Customs Tariff Act, 1975, concerning existing anti-dumping duties on these goods originating from China PR and Korea RP.
Point 2
The DGTR found prima facie evidence of circumvention through Malaysia.
3. Applicability & Compliance Framework
Effective immediately from the date of publication, importers of these goods from Malaysia will be subject to provisional assessment, requiring them to furnish a guarantee to the customs authorities.
Point 4
This guarantee will cover the potential anti-dumping duty that may become payable if the anti-circumvention investigation concludes that circumvention has indeed occurred.
Point 5
The existing anti-dumping duty on these goods from China PR and Korea RP, imposed via Notification No. 11/2024-Customs (ADD), remains in force and will continue to be levied where applicable.
Point 6
This measure aims to prevent revenue leakage and protect domestic industry during the pendency of the investigation.
Procedural Changes & Compliance Impact
- Provisional assessment mandated for imports of 'Alloy Steel Chisel/tool and Hydraulic Rock Breaker in fully assembled condition', and seven specified assemblies/sub-assemblies/components, exported from Malaysia.: Importers of these goods from Malaysia must now undergo provisional assessment and provide a guarantee to customs, covering potential anti-dumping duties. This increases compliance burden and financial exposure for these importers.
- Initiation of an anti-circumvention investigation under Section 9A(1A) of the Customs Tariff Act, 1975, concerning alleged circumvention of existing anti-dumping duties on goods from China PR and Korea RP through Malaysia.: This signals the government's proactive stance against trade circumvention. It creates uncertainty for businesses involved in the supply chain from Malaysia, as future definitive anti-dumping duties could be imposed.
- The provisional assessment requires furnishing a guarantee to the proper officer of customs for payment of potential anti-dumping duty.: Importers will incur additional costs related to providing guarantees (e.g., bank guarantees) and face potential retrospective duty payments if the investigation confirms circumvention. This ties up working capital.
- Clarification that existing anti-dumping duty (Notification No. 11/2024-Customs (ADD)) on subject goods from China PR and Korea RP continues to be levied.: Ensures continuity of existing trade protection measures. Taxpayers importing from China PR and Korea RP are unaffected by this specific provisional assessment, but the underlying ADD remains applicable.