Thieves break the entry of Chinese goods from the door! Modi government strict on Malaysia route, strict on imports

Indian government has taken strict action against alleged evasion of anti-dumping duty by China by Malaysia. Anti-dumping duties are already in place in India on hydraulic rock breakers and alloy steel tools from China and South Korea. But to gain an unfair advantage in the Indian market, China was re-routing these products through Malaysia instead of sending them directly to India so that it could avoid taxes and duties.

India’s Directorate General of Trade Remedies (DGTR) has initiated strict monitoring and formal investigation of these goods coming from Malaysia after preliminary investigations found irregularities. On the other hand, due to increasing international pressure, the Malaysian government has also taken strict measures in this direction. Behind this, countries such as Malaysia and Indonesia have been blacklisted by the US as they have become transit routes for goods related to China.

Signs of an inspection error

According to a notification issued by the Ministry of Finance, anti-dumping duty is already applicable on hydraulic rock breakers and alloy steel tools and other goods from China and South Korea. DGTR conducted a preliminary investigation considering the possibility that imports were being made through Malaysia to evade duty. An anti-circumvention probe has been launched after the investigation found indications of irregularities. There are seven main things under its purview.

Also, the government has made provisional assessment mandatory for these products coming from Malaysia. Importers have to provide a guarantee to the customs department for possible anti-dumping duty. Although no new duties have been imposed yet, only a precautionary measure has been taken to collect potential duties pending the completion of the investigation.

Also issue on global

The DGTR initiated the action following a complaint by Indian company Dodgeco. The government is currently closely examining the import and trade patterns through Malaysia between April 2025 and March 2026. This is not limited to India. The US recently added countries like Malaysia and Indonesia to the ‘Tier 2 Risk’ (Illegal Re-routing of China-related goods) list. Chinese companies are also falsely labeling their goods as ‘Made in Malaysia’ to avoid US tariffs. Amid growing international pressure, Malaysia’s Ministry of Investment, Trade and Industry has taken drastic measures. Now the rules for issuing certificate of origin for goods going from Malaysia to America or other countries have been made very strict.