Central Govt imposes Anti-Dumping Duty on Aluminium Foil Imports from China
It was noted that Chinese exporters were dumping aluminium foil at prices below the normal value
In a significant move to protect domestic industry, the Government of India has officially imposed anti-dumping duty (ADD) on imports of aluminium foil up to 80 microns originating from China. This decision follows thorough investigations and recommendations by the designated authority, which found that Chinese exporters were dumping aluminium foil at prices below the normal value, causing material injury to Indian manufacturers.
The notification, published in the Gazette of India on June 19, 2025, supersedes the provisional ADD imposed in March 2025. The definitive ADD will be effective for five years from March 17, 2025, unless revoked or amended earlier. The duty rates vary by producer, ranging from USD 479 to 721 per metric ton depending on the Chinese manufacturer and product specifications.
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The designated authority concluded that the dumped imports caused significant harm to the domestic aluminium foil industry, impacting local manufacturers' viability and profitability. The anti-dumping duty aims to level the playing field, curtail unfair trade practices, and encourage growth of the domestic aluminium foil sector.
Impact on Food and Packaging Industries
The imposition of ADD on Chinese aluminium foil imports will have a multifaceted impact on industries that heavily rely on aluminium foil, particularly the food and packaging sectors.
- Cost Implications: Aluminium foil is extensively used for packaging perishable food items, spices, tea bags, and thermal insulation in packaging applications. With the introduction of ADD, import costs are expected to rise, leading to increased prices for aluminium foil. This cost rise will likely be passed on to food processors and packaging manufacturers, who may face higher raw material expenses.
- Domestic Industry Boost: The duty could benefit domestic aluminium foil manufacturers by reducing the influx of cheap imports, potentially leading to increased production and investment in local capacity. Over time, this could improve the supply stability and encourage innovation in aluminium foil products tailored for packaging needs.
- Packaging Industry Challenges: Packaging companies relying on imported aluminium foil for cost-effective packaging solutions might face challenges in maintaining profitability. Small and medium packaging firms could see margin pressures due to increased input costs, which might translate into higher prices for packaged food products.
- Quality and Availability: The focus on protecting local producers may encourage better quality standards and supply reliability. However, initial disruptions in import availability could impact manufacturers who depend on specific foil grades for specialized packaging like insulation and spice packaging.
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Overall, while the anti-dumping duty seeks to protect Indian manufacturers and strengthen the aluminium foil industry, food and packaging companies must prepare for a period of adjustment marked by higher input costs and possible shifts in sourcing strategies.
Policymakers and industry stakeholders will need to collaborate to ensure that the benefits to domestic producers do not unduly burden the broader supply chain and consumers.
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