Anti dumping duty

We are importing from China, Plastic PPH ball valves, where a small part, the ball seat is made of PTFE. Imported under valve HSN code and tariff. Clearence of shipment is heldup as Customs department is raising query for Anti dumping duty for PTFE from China. Is it applicable, to even a small, essential component of a totally different product

Replies (4)
Quick Summary
This discussion addresses concerns about anti-dumping duties on PTFE components used in plastic PPH ball valves imported from China. While the valves are classified under a specific HSN code, customs are querying anti-dumping duties on the PTFE ball seat. The advice suggests checking HS codes, tariff classifications, the scope of the duty, and potential exemptions, possibly using the de minimis principle or arguing the component's essentiality. Consulting a customs broker or trade attorney is recommended, along with providing detailed documentation and potentially paying duties provisionally under protest while appealing.

Anti-dumping duties are typically imposed on specific goods from specific countries to prevent dumping, which is the practice of exporting goods at a price lower than their normal value.

In this case, the anti-dumping duty is likely imposed on PTFE from China. However, the question is whether this duty applies to a small component of a different product, like the ball seat in your plastic PPH ball valves.

Here are some points to consider:

1. Harmonized System (HS) Code: Ensure you're using the correct HS code for the entire product (valves). If the ball seat is a minor component, it might not be subject to the anti-dumping duty on PTFE.

2. Tariff classification: Review the tariff classification rules to determine if the PTFE component is classified under a separate heading or is covered under the valve's HS code.

3. Anti-dumping duty scope: Check the scope of the anti-dumping duty imposition on PTFE from China. It might only apply to specific types of PTFE or specific uses, like standalone PTFE products.

4. Exemption or exclusion: Investigate if there's an exemption or exclusion for components used in other products, like valves.

To resolve this, consider the following steps: 1. Consult with a customs broker or trade attorney to review your specific situation.

2. Provide detailed documentation about the product, including the ball seat component and its relationship to the valve.

3. Engage with the Customs department to clarify their concerns and provide additional information.

4. If necessary, apply for a ruling or seek a review of the classification and anti-dumping duty 

  1. The applicability of anti-dumping duty (ADD) to a small component of a product can be a complex issue.
  2. Although the primary product is classified under a valve HSN code, the PTFE component's classification is crucial.
  3. De Minimis principle: This principle suggests that if the value of the PTFE component is negligible (typically considered < 1-2% of the total product value), ADD might not be applicable. However, this principle is not always followed.
  4. Argue that the PTFE component is essential to the functioning of the ball valve, and its removal would render the product unusable. This might support your case for not applying ADD.
  5. If eligible, apply for an exemption from ADD under Rule 18 & 20 of the Anti-Dumping Duty Rules, 1995 ,as the same is exempted under subsection(1) & (5) of sec. 9A of Custom Tarrif Act.
  6. Respond to the Customs query, providing detailed explanations and supporting documents, highlighting the points mentioned above.
  7. If Customs insists on ADD, consider paying it provisionally under protest, and then file an appeal with the Commissioner (Appeals) or the Customs.

Thanks Mr. Rachakonda and Mr. Rambhia for the valuable advice. After posting the topic, I gogled, METAed and found the attached docs. It looks presently there is no ADD on the subject product. Can someone vouch for the document and confirm that ADD has been terminated?  I also confirm that the HSN and tariff classification are different from the product imported by us. Please help. 

Thanks. Please see reply to my post for further update and advise. 

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