DGTR initiates countervailing duty investigation on Insoluble Sulphur imports from China PR

OCCL has told the exchanges that DGTR has started a countervailing duty (anti-subsidy) probe into imports of 'Insoluble Sulphur' from China PR.

Thu 8 Oct 2026

Alleged subsidy programmes covered

79 alleged subsidy programmes of the Government of China PR

Subject goods and country

Countervailing duty (anti-subsidy) probe into imports of 'Insoluble Sulphur' from China PR

Existing duty

Anti-dumping duty on these goods from China PR and Japan already runs for five years

What the company has informed the exchanges

OCCL Limited has told the stock exchanges that the Designated Authority, Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry, has initiated a countervailing duty (anti-subsidy) investigation into imports of "Insoluble Sulphur" originating in or exported from China PR. The investigation has been initiated on an application shared by the Company, which is the sole producer of the subject goods in India and constitutes the domestic industry.

The initiation notification is F. No. 6/48/2026-DGTR dated 30 September 2026, published in the Gazette of India (Extraordinary) dated 7 October 2026. The case number is CVD/OI/008/2026.

Key details on the record

• Nature of proceedings: countervailing duty (anti-subsidy) investigation
• Product under consideration: Insoluble Sulphur, classifiable under tariff items 2802 00 10 and 3812 39 30, and also imported under tariff item 3824 99 00; the customs classification is indicative only
• Subject country: China PR
• Period of investigation: 1 April 2025 to 31 March 2026 (12 months)
• Injury investigation period: FY 2022-23, FY 2023-24, FY 2024-25 and the period of investigation
• Alleged subsidy programmes covered: 79, of the Government of China PR

What the Designated Authority has said about the case

On the basis of prima facie evidence submitted by the domestic industry, the Designated Authority is satisfied as to the subsidisation of the subject goods, material injury to the domestic industry, and a causal link between such subsidisation and injury. The investigation shall determine the existence, degree and effect of the alleged subsidisation and recommend the amount of countervailing duty which, if levied, would be adequate to remove the injury to the domestic industry.

Duty already in place on the same goods

An anti-dumping duty on imports of the subject goods from China PR and Japan was imposed for a period of five years vide Notification No. 13/2025-Customs (ADD) dated 6 June 2025. Separately, an anti-absorption investigation was concluded vide Final Findings F. No. 7/03/2026-DGTR dated 18 September 2026, recommending modification of the quantum of duty to the Ministry of Finance, Government of India.

Financial impact

The Company states that the expected financial impact is not quantifiable at this stage and will depend upon the final findings of the DGTR and the decision of the Ministry of Finance, Government of India. It has said it will keep the stock exchanges informed of material developments in the matter.

In simple terms

A countervailing duty investigation examines whether imported goods benefit from subsidies in the exporting country and whether such subsidised imports are causing injury to domestic producers. This update is about the initiation of that process. Any duty would follow only after the final findings of the DGTR and a decision by the Ministry of Finance.

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