The Directorate General for Trade Remedies (DGTR) has recommended a five-year extension of anti-dumping duty on aluminium foil imported from China, Thailand, Malaysia, and Indonesia, according to a notification. The Finance Ministry will take the final decision on the matter, with the recommendations requiring formal notification by the Central Board of Indirect Taxes and Customs (CBIC). The duty recommended on 'Aluminium foil 80 micron and below' ranges between USD 93.53 per tonne and USD 976.99 per tonne. As reported by the DGTR, the authority considers it appropriate and necessary to recommend continuation of definitive duties for a period of five years after examining submissions by all interested parties.
The notification revealed that dumped imports have impacted the profitability of the domestic industry. The application for initiation of sunset review investigation was filed by Hindalco Industries, LSKB Aluminium Foils, Raviraj Foils, Shree Venkateshwara Electrocast, Shyam Sel and Power Ltd, and SRF Altech Ltd. According to the DGTR, despite duties in force, there are significant imports, especially from Thailand, and Chinese exporters are highly export oriented and likely to export higher quantities if duties cease. The flat-rolled aluminium review also highlighted that most Chinese suppliers would face a $449-per-tonne duty under the recommendation, with the existing duty imposed in December 2021 due to expire on December 5, 2026. The aluminium foil review similarly found that the removal of duties could lead to a recurrence of dumping and injury.
The proposed duties differ by product category and country of origin, with the flat-rolled aluminium measure applying to Chinese imports and the foil measure covering four countries. For flat-rolled aluminium, the DGTR has proposed a duty of $449 per tonne for most Chinese suppliers, with the existing measure introduced in December 2021 and scheduled to expire on December 5, 2026. For aluminium foil, the proposed rates are: China - $506.81-$976.99, Thailand - $93.53-$339.93, Malaysia - $850.45, and Indonesia - $422.28. The foil duties have their origins in earlier investigations, including measures introduced in 2017 and subsequent extensions and modifications. The DGTR has recommended retaining the measures for five more years following separate sunset reviews of the two product categories.
A key consideration in the flat-rolled aluminium review was the possibility that changing trade conditions could redirect aluminium supplies towards India. The DGTR pointed to excess production capacity in China, higher US tariffs on aluminium and the European Union's Carbon Border Adjustment Mechanism (CBAM) as factors that could influence export flows. According to the authority's assessment, these developments increase the risk of Chinese aluminium being diverted to the Indian market. The DGTR concluded that dumping and injury to the domestic industry could continue or recur if the existing duty were allowed to expire. The flat-rolled aluminium review also highlighted excess Chinese production capacity and trade restrictions in major markets, expressing concern that these developments could increase the risk of diversion of exports to India.
The DGTR's assessment of the foil sector noted that the domestic industry has undergone changes during the period in which trade protection has been in place. New manufacturers have entered the market, production capacity has increased and companies have expanded into higher-value specialty products. Despite these developments, the authority found that import competition continues to affect pricing and profitability in the sector. The impact on industries using aluminium products was also considered as part of the reviews. Aluminium foil is used in a range of applications, including pharmaceutical and food packaging, household foil, cigarette and tobacco packaging, semi-rigid containers, and capacitor and battery applications. The DGTR has included exclusions for certain specialised products to address concerns relating to supplies for downstream industries. Its assessment found that the impact of the flat-rolled aluminium duty on identified downstream applications would be below 1%, except for pressure cookers, while for aluminium foil, the authority considered the impact on consumers to be insignificant.
