India Extends Anti Dumping Duty on Normal Butanol Import

• Anti-dumping duty on normal butanol extended until 12 July 2026
• Extension applies to imports from the EU, Malaysia, Singapore, South Africa, and the US
• Sunset review was initiated in September 2025 under trade remedy rules
• Authorities are assessing the risk of renewed dumping and injury to local producers
• Decision offers temporary relief to domestic manufacturers and supply stability to user industries

The government has decided to keep the anti-dumping duty on imports of normal butanol in place for another year, extending it until 12 July 2026. The decision covers shipments arriving from the European Union, Malaysia, Singapore, South Africa, and the United States. This extension comes while authorities carry out a sunset review that will decide whether the levy should remain beyond its original five-year term.

A notification issued by the Union finance ministry on 8 January stated that the duty, first imposed in April 2021, will continue during the review period unless a separate decision alters or withdraws it earlier. The move follows a formal request from the designated authority, which began the review process in September 2025 in line with provisions of the Customs Tariff Act and the relevant anti-dumping regulations.

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The ongoing review is meant to assess the likely impact of removing the duty. Officials are examining whether ending the measure could lead to dumping of normal butanol into the Indian market again and whether that would cause damage to domestic manufacturers. Such reviews are a standard requirement under trade remedy rules, which allow duties to be extended when there is a risk of harm to local industry.

Normal butanol is an important input for several industries, including paints, coatings, adhesives, solvents, chemicals, and pharmaceuticals. When the duty was originally introduced, investigations found that imports from the five regions were being sold in India at prices below fair levels. This pricing pressure had affected margins and plant utilisation for Indian producers.

By keeping the duty in force during the review, the government aims to offer interim protection to domestic manufacturers against low-priced imports. At the same time, the measure is expected to support a stable supply environment for industries that depend on normal butanol, ensuring continuity while the review reaches its conclusion.