In February 2026, the United States slapped a countervailing duty of nearly 126% on Indian solar cells and modules. Overnight, exporters who had priced their orders around a normal tariff were looking at a levy that dwarfed the value of the goods. It is the clearest recent reminder of a rule every importer should live by: the base customs duty is not the whole cost. Anti-dumping and countervailing duties can appear on top - and they can be enormous.
We see importers get caught by this repeatedly. So before your next order, here is how these duties work and how to check whether your product carries one.
What Are Anti-Dumping and Countervailing Duties?
Both are trade-remedy duties - extra levies designed to protect domestic industry from unfair foreign pricing. They are separate from your Basic Customs Duty and are imposed only on specific products from specific countries.
- Anti-dumping duty (ADD) applies when a product is exported to India at a price below its normal value in the exporting country - "dumping". The duty offsets that price gap.
- Countervailing duty (CVD) applies when a foreign government has subsidised a product, giving it an unfair cost advantage. The duty offsets the subsidy.
In India, these are investigated by the Directorate General of Trade Remedies (DGTR) and imposed through CBIC notifications. Each duty is tied to a precise product description, HS code and country of origin.
Why This Matters Before You Import, Not After
Here is the trap. You calculate your landed cost using the Basic Customs Duty and IGST, agree a price with your supplier, and place the order. Only when the goods arrive - or worse, after you have sold them - do you discover an anti-dumping duty applies to that product from that country. The extra levy can turn a profitable order into a loss.
Trade-remedy duties are product-and-country specific and change over time as investigations open, expire or are reviewed. A product that was clear last year may attract a duty this year, and vice versa. That is exactly why a quick screening before you commit is worth far more than it costs.
Sourcing a new product or from a new country? Send us the product and origin and we will screen it for any anti-dumping or countervailing duty before you place the order. Book a free screening call or message us on WhatsApp.
How the Duties Stack Up
To see why these matter, it helps to see where they sit in the duty chain:
| Layer | What it is | Applies to |
|---|---|---|
| Basic Customs Duty (BCD) | The main tariff on the product | Almost all imports |
| IGST | Integrated GST on the import | Almost all imports |
| Social Welfare Surcharge | 10% of aggregate customs duties | Most imports |
| Anti-dumping duty | Offsets below-value dumped pricing | Specific products / countries |
| Countervailing duty | Offsets foreign subsidies | Specific products / countries |
The first three are predictable. The last two are the ones that catch importers out - because they are easy to miss and can be larger than everything above them combined.
How to Check Whether Your Product Is Affected
Screening a product comes down to three things: the exact HS code, the precise product description in the duty notification, and the country of origin. A duty on "X from Country A" does not apply to the same product from Country B - and the description in the notification is often narrower than the whole HS code. Getting the classification right is therefore the first step, which is why we always pair a duty screening with a proper HS classification check.
A Mistake We See Often
The most common error is assuming that because a product cleared cheaply once, it always will. Anti-dumping investigations conclude, duties get imposed, and an importer who did not re-check gets a nasty assessment on their next consignment. The second most common error is trusting a supplier's claim that "there is no anti-dumping duty" - suppliers are not the ones who pay it, and they are rarely tracking Indian trade-remedy notifications.
People Also Ask
What is the difference between anti-dumping and countervailing duty?
Anti-dumping duty offsets goods sold to India below their normal value in the exporting country. Countervailing duty offsets goods that benefited from a foreign government subsidy. Both are extra levies on top of Basic Customs Duty.
Are anti-dumping duties the same for all countries?
No. They are country-specific. A duty on a product from one country does not apply to the same product from another country unless a separate duty is notified for it.
How do I find out if my product has an anti-dumping duty?
Identify the exact HS code and product description, then check the relevant DGTR and CBIC notifications for that product and country of origin - or ask a licensed customs house agent to screen it for you.
Can anti-dumping duty be more than the value of the goods?
Yes. As the 2026 solar countervailing duty showed, trade-remedy duties can exceed 100% of the goods' value in extreme cases. Always check before committing.
Do anti-dumping duties expire?
They are imposed for a defined period and can be reviewed, extended or allowed to lapse. This is why a product's status can change from year to year and must be re-checked.
Does classification affect anti-dumping duty?
Very much so. The duty is tied to a precise product description and HS code. An accurate classification is the first step in knowing whether a duty applies.
The Short Version
Anti-dumping and countervailing duties are the hidden layer of the import cost stack - product-specific, country-specific, and occasionally larger than the goods themselves. The importers who never get surprised are simply the ones who screen every new product and sourcing country before they commit. For the wider duty picture, read our guides on Budget 2026 customs duty changes and the US-India trade deal.
Don't let a hidden duty wipe out an order. We will screen your product and sourcing country for trade-remedy duties, free of charge, before you buy. Book a free consultation or use the enquiry form.
