India Imposes Five-Year Countervailing Duty on Calcium Carbonate Filler Masterbatch from Vietnam

India has imposed a definitive countervailing duty (CVD) on imports of calcium carbonate filler masterbatch from Vietnam for five years. The duty is given effect through CBIC Notification No. 4/2026-Customs (CVD), issued on 23 September 2026, and follows a final finding by the Directorate General of Trade Remedies (DGTR) that the product was being imported at subsidised prices, causing material injury to the domestic industry. If you import filler masterbatch from Vietnam — or use it as an input in plastics compounding, packaging film or moulded goods — your landed cost rises and you must map your exposure by supplier.

What Happened

The notification imposes a countervailing (anti-subsidy) duty on calcium carbonate filler masterbatch, classified under tariff item 3824 99 00, when imported from Vietnam. The duty is producer-specific, expressed in US dollars per metric tonne, and applies for five years from the date of the notification's publication in the Official Gazette (unless revoked, superseded or amended earlier).

Reported producer-specific rates include roughly: Vitaplas JSC around USD 9.11/MT; An Tien Industries around USD 13.42/MT; ADC Plastic JSC around USD 14.20/MT; the EuroPlast group entities around USD 15.16/MT; Vietnam Industrial Minerals International around USD 16.03/MT; and US Masterbatch (including its Hung Yen branch) around USD 22.52/MT. All other Vietnamese producers/exporters face the residual rate of about USD 69.19/MT. To claim a producer-specific rate rather than the residual rate, importers must present a valid commercial invoice with the prescribed manufacturer's declaration.

Why / Background

Countervailing duty is a trade remedy that offsets subsidies granted by an exporting country's government, distinct from anti-dumping duty (which offsets below-normal-value pricing). DGTR's final findings (reference F. No. 6/39/2024-DGTR, dated 24 June 2026) concluded that Vietnamese exporters received countervailable subsidies and that the domestic Indian industry suffered material injury as a result. Notably, calcium carbonate filler masterbatch from Vietnam is also subject to anti-dumping duty under an earlier instrument (reported as Notification No. 37/2025-Customs (ADD), dated 24 December 2025), so both remedies can apply — importers should check how the two interact for their specific supplier.

Who's Affected

Importers and traders of filler masterbatch sourcing from Vietnam; plastics compounders and converters who use filler masterbatch to reduce resin content in films, sheets, woven sacks and moulded products; and CHAs clearing these consignments. Masterbatch is a high-volume, price-sensitive input, so even a modest per-tonne duty affects converters' costs.

Operational Detail

The duty applies on imports cleared on or after the effective date. To secure a lower producer-specific rate, the consignment documentation must clearly identify the actual manufacturer and carry the manufacturer's declaration; otherwise customs will apply the residual "all others" rate. Where both CVD and ADD apply, both are leviable in addition to basic customs duty and IGST — confirm the full duty stack with your customs broker before committing to a purchase price.

What Importers Should Do Now

• Identify which Vietnamese manufacturer actually produces your masterbatch, and confirm the applicable producer-specific CVD rate.
• Ensure every consignment carries a valid commercial invoice with the prescribed manufacturer's declaration to avoid the higher residual rate.
• Check whether anti-dumping duty (reported under Notification 37/2025-Customs (ADD)) also applies to your supplier, and model the combined duty.
• Recompute landed cost and revisit supply contracts; evaluate alternative origins or domestic sources where the duty erodes margin.
• Brief your CHA so the correct rate is claimed at the bill-of-entry stage.

The Bigger Picture

India has been active in using anti-dumping and countervailing measures across chemicals, plastics and metals, increasingly targeting Vietnam and other South-East Asian origins as well as China. For importers, the lesson is to track DGTR investigations early: by the time a definitive duty is notified, sourcing decisions made months earlier can already be under water. Building supplier diversification and monitoring the DGTR pipeline are now part of prudent procurement.

Frequently Asked Questions

What is the difference between CVD and anti-dumping duty here? CVD offsets government subsidies to the exporter; anti-dumping duty offsets below-normal-value pricing. Both can apply to the same product from Vietnam.

How do I get the lower producer-specific rate? Present a valid commercial invoice with the prescribed manufacturer's declaration identifying the actual producer. Without it, customs applies the residual "all others" rate (about USD 69.19/MT).

How long does the duty last? Five years from the notification's publication, unless revoked, superseded or amended earlier.

Does this apply to masterbatch from other countries? This CVD is specific to Vietnam. Other origins are outside its scope, though they may face separate measures.

Conclusion

The five-year CVD raises the cost of Vietnamese calcium carbonate filler masterbatch, with rates varying sharply by producer and a steep residual rate for undocumented sources. Confirm your manufacturer, secure the declaration for the lower rate, and check whether anti-dumping duty also applies before finalising any purchase.

This summary is for general guidance. Verify the exact rates, product scope and effective date against CBIC Notification No. 4/2026-Customs (CVD) and the DGTR final findings on the official portals (cbic.gov.in and dgtr.gov.in) before acting.