India Imposes Up to 25.76 Percent Subsidy Tax on Chinese Pearlescent Pigments

On March 28, 2025, India’s Ministry of Commerce and Industry issued a final affirmative ruling on countervailing duties (CVD) against Chinese-origin pearlescent pigments, excluding those used for automotive applications. The ministry recommended imposing a 5-year countervailing tax ranging from 11.18% to 25.76% on the CIF value of imports.

Chinese manufacturers were assigned the following rates:

• Rika Technology Co. Ltd.: 14.49%
• Henan Lingbao New Materials Technology Co. Ltd.: 16.74%
• Zhejiang Coloray Technology Development Co., Ltd.: 14.63%
• Jiangsu Pritty New Material Co., Ltd.: 11.18%
• Other producers: 25.76%

The ruling covers products under Indian HS codes 32061110, 32061190, 32061900, and 32064990.

This decision followed an investigation initiated on March 29, 2024, based on a petition from Sudarshan Chemical Industries Limited, an Indian company. The investigation targeted imports under HS code 3206, as well as specific subcategories 32041720, 32041739, 32041759, 32041790, 32071040, 32129090, and 32151990.

India’s move reflects growing scrutiny of Chinese exports, with domestic industries citing unfair subsidies as a threat to competition. The decision is expected to impact China’s pigment exporters significantly, particularly those outside the automotive sector.