Share on LinkedInShare on LinkedIn

ARTICLE · 05 JULY 2024

Proposed Amendment To Anti-Absorption Rules

The Government of India introduced anti-absorption provisions in the Customs Tariff Act vide the Finance Act, 2021. Section 9(1B) and Section 9A(1B) were introduced to incorporate provisions...

IndiaInternational Law
  • Anti-absorption provisions were introduced by the Indian Government vide Finance Act, 2021.
  • Absorption of duty has been defined as a situation wherein export price declines post imposition of duties without commensurate decline in cost of production, export price to other countries, or resale price of article in India.
  • The DGTR has proposed amendments, including removal of the words "exporting country" or "countries" from Rule 29(1) which will clarify that an anti-absorption investigation can be filed against an individual or selective producers from a subject country.
  • There is a need for further clarification in the Rules in order to consider a situation of absorption of duties even when the import price increases without commensurate increase in cost of production.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from