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Government imposes antidumping duty on solar cell component from four nations

Date: 03 April 2019 Tags: External Sector

Department of Revenue under Ministry of Finance has imposed anti-dumping duty of up to US $1,559 per tonne on imports of Ethylene Vinyl Acetate sheet used in solar cell making from China, Saudi Arabia, Malaysia and Thailand for five years. It was imposed based on recommendation of Directorate General of Trade Remedies (DGTR) under Commerce Ministry to safeguard domestic players against cheap shipments.

Background

  • Following a complaint by domestic company, DGTR had initiated probe in April 2018. In its probe, it found that imposition of duty is required to offset dumping and injury caused by dumped imports from China, Malaysia, Saudi Arabia, and Thailand.
  • Ethylene Vinyl Acetate (EVA) is a polymer based component used in the manufacturing of solar PV (Photo Voltaic) modules. Its imports had increased in recent times after launch of Jawaharlal Nehru National Solar Mission in January 2010 aimed at generating 20,000 megawatt (MW) of solar power by 2022.
  • Imports of EVA sheets from these four countries had increased to 6,367 tonne during period of investigation (October 2016 to September 2017) from 4,674 tonne in 2016-17. The imports stood at US $1,025 tonnes in 2015-16 and US $594 tonnes in 2014-15.
  • Tap into the growing solar power sector in India, several countries were dumping or exporting solar equipment at lower rates compared to domestic market. Due to surge in cheap imports, domestic industries were impacted.

Anti-Dumping Duty

It is import duty imposed by government as protectionist and counter import measure on imported products which have prices less than their normal values or domestic price.  It is imposed under multilateral World Trade Organisation (WTO) regime to protect its domestic producers and market from below-cost/cheap imports

It is aimed at ensuring fair trading practises and create level-playing field for domestic producers with regard to foreign producers and exporters.  In India, anti-dumping duty is imposed by Finance Ministry (Revenue Department) based on is recommendation of Ministry of Commerce (i.e. by DGAD).