Court orders DGTR to review case; relief for MSMEs as Centre re-examines data transparency in trade investigation
Court Ruling Brings Relief to Industry
Kolkata, West Bengal, October 28, 2025:
In a significant judgment, the Calcutta High Court has quashed the anti-dumping duty imposed earlier this year on Titanium Dioxide (TiO₂) imported from China, and directed the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce to re-investigate the matter.
The Court, while hearing a petition filed by the India Paint Association, ruled that the DGTR had not adequately followed Rule 7 of the Anti-Dumping Rules, 1995, which requires transparency in handling confidential data during trade investigations.
As a result, the Court set aside both the DGTR’s final findings dated February 12, 2025, and the Customs Notification No. 12/2025 (ADD) issued in May 2025 by the Ministry of Finance.
DGTR Asked to Review Data Handling
Following the order, the DGTR has reopened the case, focusing solely on the confidentiality and disclosure issues identified by the court.
According to a fresh DGTR notification dated October 17, 2025, the domestic TiO₂ producers have been directed to reveal information about clients and sales transactions — particularly those involving Rutile Sulphate grades supplied to paint companies.
The DGTR stated that if companies fail to justify their confidentiality claims, their submissions could be disregarded in the final evaluation. All stakeholders were invited to send written comments by October 24, 2025.
Industry Warns Against Duty Hike
The judgment has been welcomed by India’s paint, coatings, plastic, and masterbatch manufacturers, who had strongly opposed the anti-dumping duty.
Industry representatives argue that India imports most of its Titanium Dioxide from China, as local supply — primarily from Kerala Minerals and Metals Ltd (KMML) — covers less than 15% of national demand.
“Imposing ADD would have doubled input costs for paint and plastic manufacturers,” said an industry association member. “This ruling gives MSMEs breathing space, especially at a time when costs are already high.”
A survey of over 100 manufacturers across India showed that 95% opposed ADD, warning that higher raw material prices could make Indian products less competitive globally and lead to increased imports of finished paints and plastics.
Why Titanium Dioxide Matters
Titanium Dioxide is a key raw material used in paints, plastics, inks, coatings, and cosmetics.
India consumes over 4 lakh tonnes annually, but domestic production is limited to about 30,000–40,000 tonnes per year. The rest is imported, largely from China, which produces over half of the world’s TiO₂ supply.
Industry experts note that countries like the U.S. and European Union have imposed similar duties to protect local producers, but India lacks comparable production capacity.
“Protective tariffs in India could backfire,” said a Delhi-based trade consultant. “They may protect one or two producers but penalize thousands of downstream MSMEs.”
What Happens Next
With the court’s decision, the anti-dumping duty stands cancelled, and imports of Titanium Dioxide from China will continue without additional tariffs until the DGTR completes its reassessment.
The Centre is expected to follow the court’s directions, as DGTR operates under the Department of Commerce, which has already begun the remand process. Once the review is complete, the DGTR will issue fresh final findings, which will then guide the Ministry of Finance on whether to reimpose, revise, or withdraw the duty permanently.
If the government accepts the High Court’s reasoning, experts believe the final outcome may favor continuing duty-free imports to protect India’s downstream industries.