The Central Government has introduced provisional customs assessment on imports of alloy steel chisels/tools and hydraulic rock breakers exported from Malaysia, pending the outcome of an ongoing anti-circumvention investigation.
The decision has been notified by the Ministry of Finance (Department of Revenue) through Notification No. 27/2026-Customs (ADD), dated November 5, 2026, published in the Gazette of India.
The move follows concerns that imports of these products through Malaysia may be circumventing the anti-dumping duty already imposed on similar goods originating in or exported from China and South Korea.
Background: Anti-Dumping Duty on Imports from China and South Korea
India had earlier imposed anti-dumping duty on imports of alloy steel chisels/tools and fully assembled hydraulic rock breakers originating in or exported from China and South Korea.
The duty was introduced through Notification No. 11/2024-Customs (ADD), dated June 27, 2024, following the final findings of the designated authority issued on March 28, 2024.
Subsequently, the Directorate General of Trade Remedies (DGTR), through its initiation notification dated September 28, 2026, initiated an anti-circumvention investigation into the alleged circumvention of these duties through imports of the products exported from Malaysia.
Provisional Assessment Introduced for Imports from Malaysia
During the investigation, the designated authority observed prima facie evidence of country-based circumvention through Malaysia.
Based on these findings, the authority recommended provisional assessment of imports of the products under investigation exported from Malaysia, along with obtaining appropriate guarantees from importers.
Accepting this recommendation, the Central Government has directed that imports of the specified products from Malaysia will be subject to provisional assessment until a decision is taken under Rule 27(3) of the Customs Tariff Rules, 1995.
Importers will be required to furnish such guarantees as the proper customs officer considers appropriate. These guarantees are intended to secure payment of anti-dumping duty, if any, that may become payable following the investigation and the Government's final decision.
Products Covered Under the Notification
The provisional assessment covers alloy steel chisels/tools and hydraulic rock breakers in fully assembled condition exported from Malaysia.
Importantly, the notification also covers the following seven assemblies, sub-assemblies and components of hydraulic rock breakers:
- Front head
- Back head
- Piston for hydraulic cylinder or rock breaker
- Cylinder body or hydraulic unit
- Bracket
- Frame
- Cylinder for hydraulic rock breaker
These components are specifically included to address the scope of the investigation and the alleged circumvention of the existing anti-dumping measures.
Existing Anti-Dumping Duty Will Continue
The notification also clarifies that the anti-dumping duty imposed under Notification No. 11/2024-Customs (ADD), dated June 27, 2024, will continue to be levied and collected wherever applicable, in accordance with its existing provisions.
The latest notification does not itself announce a final anti-dumping duty determination on imports from Malaysia. Instead, it introduces a provisional assessment mechanism while the anti-circumvention investigation remains pending.
What This Means for Importers
Importers dealing in alloy steel chisels/tools and hydraulic rock breakers exported from Malaysia should take note of the revised assessment requirements.
The key compliance implications include:
- Imports of the specified products from Malaysia will be subject to provisional assessment.
- Importers may be required to furnish appropriate guarantees as determined by the proper customs officer.
- The final anti-dumping duty liability, if any, will depend on the outcome of the investigation and the subsequent Government decision.
- Importers dealing in the seven specified hydraulic rock breaker components should also examine whether their products fall within the notification's scope.
The notification is particularly relevant for businesses involved in importing industrial tools, construction equipment and hydraulic rock breaker components.
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