CBIC mandates provisional assessment and high-value guarantees on hydraulic rock breakers and alloy steel chisels from Malaysia due to suspected anti-dumping duty evasion. Guarantees set at 162.50% and 29.21% respectively.
CBIC Imposes High Guarantees on Malaysian Rock Breaker Imports
The Central Board of Indirect Taxes and Customs (CBIC) has imposed provisional assessment and substantial bank guarantees on imports of hydraulic rock breakers and alloy steel chisels from Malaysia. Notification No. 27/2026 mandates guarantees of 162.50% and 29.21% of assessed duty value, respectively, amid an ongoing anti-dumping circumvention probe.
The action follows intelligence indicating possible trans-shipment and misdeclaration to avoid existing anti-dumping duties. CBIC invoked its powers under Section 18 of the Customs Act, 1962 to enforce provisional assessment. Importers must now furnish bank guarantees before clearance, significantly increasing cash flow pressure.
Practitioners should advise clients importing such machinery from Malaysia to prepare for heightened scrutiny and financial outlay. The development signals aggressive enforcement against duty evasion through third countries. The final determination will depend on the outcome of the ongoing investigation.
Citations
- Customs Act, 1962, Section 18
