India imposes anti-dumping duties on cosmetic chemical imports to bolster domestic market

India has imposed five-year anti-dumping duties on imports of vitamin A palmitate and insoluble sulfur from China, Japan, Switzerland, and the EU to protect its domestic industry.

Effective immediately, the tariffs aim to counter the effects of underpriced imports that have been hurting Indian manufacturers, especially in sectors such as cosmetics.

The Ministry of Finance issued the notification following an investigation by the Directorate General of Trade Remedies (DGTR), which concluded that both chemical substances were being sold in India at below-market prices.

According to the DGTR, undercutting causes “material injury” to domestic manufacturers, who cannot compete with low-cost foreign alternatives.

Vitamin A palmitate is commonly used in cosmetics for its anti-aging properties. Insoluble sulfur is used in seals and packaging materials for cosmetic products.

These compounds are largely imported, with vitamin A palmitate alone amounting to US$48.6 million in imports in FY25, mostly from China and the EU.

Origin-based tariffs

The new duties on vitamin A palmitate vary based on origin and exporter. According to standard WTO anti-dumping procedures, some exporters may receive lower duties if they cooperate with the investigation and demonstrate fairer pricing, while others face higher rates due to greater dumping margins or insufficient data transparency.

Imports from China face the highest tariffs, US$20.87 per kg, for exporters other than Shangyu NHU BioChem, which will be taxed at a lower rate of US$14.95 per kg.

Sulfur has critical applications in sealing and packaging, especially for personal care products.Swiss multinational DSM Nutritional Products will pay the lowest duty of US$0.87 per kg, while other Swiss exporters face US$8.2 per kg. The EU will see a flat rate of US$11.09 per kg applied to all its exports.

The DGTR’s findings confirm that this pricing imbalance is not imposed as a competitive edge but rather a strategic effort to prevent the dumping of goods and disruption of domestic production.

The tariffs will be collected in Indian rupees, based on exchange rates at the time of filing. The government clarified that the duties will apply for five years unless reviewed or rescinded earlier.

Reliance raising alarms

Though vitamin A palmitate is generally used in small quantities for formulations, some Indian companies’ reliance on imports raised alarms across sectors.

Industry voices expressed mixed reactions. “The duty gives much-needed breathing space to Indian vitamin-A manufacturers,” says Yogendra Sharma, a pharmaceutical producer.

“Still, companies that rely on Swiss or Chinese imports will likely see a cost bump. But given the small quantities used, it should be manageable.”

Legal and trade policy experts also interpret the move as part of India’s broader shift toward trade boldness. “India is increasingly using WTO-compliant instruments to protect its manufacturing base,” says Manish Kr Shubhay, a partner at The Percept Law Offices.

“This ruling on vitamin A palmitate is a strong example of that proactive posture.”

According to the DGTR, undercutting causes “material injury” to domestic manufacturers.Asia’s suffering sulfur spikes

The DGTR found that manufacturers in China and Japan are selling insoluble sulfur in India at artificially low prices, thereby distorting market dynamics and reducing profitability for Indian producers.

Chinese exporters face a flat duty of US$307 per metric ton (MT). From Japan, Shikoku Chemicals will pay US$259 per MT, while all other Japanese exporters will be charged US$358 per MT.

While insoluble sulfur is not widely known outside industrial circles, it has critical applications in sealing and packaging, especially for cosmetics and personal care goods where high-performance rubber is needed.

The new duties may, therefore, have ripple effects through both automotive and packaging supply chains, as tyre production also faces price hikes.