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Solar cells from China, Malaysia face 25% safeguard duty

20% safeguard duty may be levied in the first six months of second year

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The Chinese and Malaysian manufactured solar cells being imported to India is likely to attract 15% to 25% safeguard duty during the next two years.

On Monday, the Directorate General of Trade Remedies (DGTR) has recommended three slab safeguard duty on imported solar cells from China and Malaysia, while exempting all other countries including United States of America, Taiwan and European nations.

As per the recommendation made by DGTR, 25% of duty will be levied during the first year followed by 20% for a period of initial six months of the subsequent year and 15% duty in the last six months of the second year.

The investigation report prepared by DGFT reads, "There has been a significant increase in imports and the domestic industry has suffered serious injury, considering overall performance, on the basis of listed economic parameters such as market share and profitability, which have sharply declined over the injury period 2014-15 to 2017-18 whereas market share of imports have increased during the same period. This has caused significant overall impairment to the domestic industry."

After going through the data presented to DGFT, it concluded that the position of domestic industry has further deteriorated on account of continued low price of import.

After DGFT's recommendation on Monday, the proposal will now move to Board of Secretaries from Ministry of New and Renewable Energy, Ministry of Power, Ministry of Commerce, Department of Industrial Policy & Promotion, Revenue, Labour and Agriculture. Depending upon the deliberations made by them, the decision would be forwarded to Ministry of Finance who in turn would publish a gazette finalising the decision.

The final decision could either be reversed or safeguard duty percentage will be reduced or decreased.

The initial petition was moved in November 2017, with DGFT to levy this duty on solar cell imports. The recommendation came on Monday after several rounds of hearing and representations by various sections of the industry.

UNDER CLOUD

  • 20% - safeguard duty may be levied in the first six months of second year
     
  • 15% - safeguard duty may be imposed in the last six months of second year
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