CBIC Extends Anti-Dumping Duty on Toluene Di-Isocyanate (TDI) Imports for 5 Years

In a significant move to protect the domestic chemical industry, the Ministry of Finance issued Notification No. 03/2026-Customs (ADD) on February 10, 2026. This mandate continues the levy of Anti-Dumping Duty (ADD) on imports of Toluene Di-Isocyanate (TDI) coming into India from the European Union and Saudi Arabia.

This definitive action follows the comprehensive Sunset Review Final Findings issued by the Directorate General of Trade Remedies (DGTR) in November 2025. The DGTR concluded that removing these duties would likely lead to a recurrence of dumping and consequent financial injury to domestic producers.

What is TDI and Who is Impacted?

Toluene Di-Isocyanate (TDI) is a critical organic chemical compound primarily used in the production of flexible polyurethane (PU) foams, coatings, elastomers, and adhesives.

For manufacturers operating in the sleep solutions and home furniture sectors – where PU foam mattresses and seating are core products – TDI is an unavoidable input cost. The extension of this duty directly impacts the supply chain, procurement strategies, and landed costs for domestic foam manufacturers relying on imported raw materials.

Key Highlights of Notification 03/2026-Customs (ADD)

The latest notification supersedes the earlier 2021 ADD mandate and locks in the protective tariff for an extended duration.

• Strict Product Scope: The duty applies only to “Toluene Di-Isocyanate (TDI) having an isomer content in the ratio of 80:20” classified under Tariff Item 2929 10 20. The notification explicitly states that all other grades or variants of TDI fall outside the scope of this duty.
• Duration: The Anti-Dumping Duty is levied for a strict period of 5 years, effective from the date of publication in the Official Gazette.

The Revised Duty Rates & Calculation Mechanism

To effectively neutralize global dumping margins, the Indian Government notifies these specific ADD rates in US Dollars (US$).

Consultant’s Note on Payment: While the rates are pegged to the US Dollar, Indian importers will pay the duty in Indian Rupees (INR). The final payable amount is calculated using the official exchange rate notified under Section 14 of the Customs Act, 1962, on the date the Bill of Entry is presented.

Applicable Rates for TDI (80:20) Imports:

S.No.	Country of Origin	Country of Export	Producer / Manufacturer	Anti-Dumping Duty
1	European Union	Any country including EU	Covestro Deutschland AG	US$ 221.04 / MT
2	European Union	Any country including EU	BorsodChem Zrt	US$ 102.05 / MT
3	European Union	Any country including EU	Any producer other than S.No. 1 & 2	US$ 264.96 / MT
4	Any country other than those attracting ADD	European Union	Any producer	US$ 264.96 / MT
5	Saudi Arabia	Any country including Saudi Arabia	Sadara Chemical Company	US$ 217.55 / MT
6	Saudi Arabia	Any country including Saudi Arabia	Any producer other than S.No. 5	US$ 344.33 / MT
7	Any country other than those attracting ADD	Saudi Arabia	Any producer	US$ 344.33 / MT

(Note: All duties are payable in Indian Currency, calculated at the official Customs exchange rate on the date the Bill of Entry is presented).

Strategic Takeaways for Importers: The Importance of Precise Classification

Because the anti-dumping duty is strictly limited to the 80:20 isomer ratio, precise tariff classification is your strongest defense against unlawful duty levies.

Just as we recently secured a landmark relief at Bengaluru Customs Appeals by proving that generic components cannot be arbitrarily clubbed under specific ADD levies, importers of TDI must ensure their technical documentation explicitly defines the isomer grade. If your imported chemical does not strictly meet the essential character and ratio of the notified goods, it cannot legally attract this specific Anti-Dumping Duty.

Strategic preparation and expert advisory can prevent heavy financial penalties and blocked capital at the ports.