Definitive ADD on Chinese imports of textured glass; ADD could affect margins, solar panel mfr

Definitive ADD on Chinese imports of textured glass; ADD could affect margins, solar panel mfr

Anti-dumping duty ranges between $52.85/MT to $136.21/MT specific to different exporters and mfrs of China.

Sheela Mamidenna 

The Directorate General of Anti-Dumping Duty imposed an anti-dumping duty(ADD) on the textured toughened (tempered) glass, imported from China PR, with a minimum of 90.5% transmission having a thickness not exceeding 4.2 mm (including tolerance of 0.2mm). This was relayed by the Customs via notification no- 38/2017- Customs (ADD) dated August 18, 2017.

The textured toughened glass is used as a component in solar photovoltaic panels and in solar thermal applications. The government has imposed anti-dumping duty ranging from $52.85 per MT to $136.21 per MT specific to different exporters and manufacturers of China.

Speaking to the Dollar Business, on the affect that the imposition of ADD could have on Indian manufacturers of solar panels, Vineet Mittal, Director Sales and Finance - Navitas Solar said, “prior to the imposition of ADD, the raw material imported from China needed to manufacture solar panels attracted 28% of IGST and Customs duty. With the above duty imposition, overall there could be an increase of 2-3% on the overall cost of the manufactured product (Solar modules). 

Since we import sizeable quantity of tempered glass from China from different producers, the difference in pricing post the imposition of ADD could translate to an increase of 0.5Re/watt on finished product i.e., a Solar panel that commands a sales price ranging between Rs 25.00 to Rs27 per watt.

Solar panels are generally in 60-cell or 72-cell panel sizes. With the imposition of ADD, the price of glass could see a whopping increase of 40-50% while the retail price of the finished product of a 60-cell or a 72-cell solar panel could see an increase of 2 - 4%.

The market for solar panels in India is competitive and the increase in the rates of tempered glass due to the imposition of ADD may affect Indian Make modules as they will be costlier than imported modules where there is no anti-dumping or customs duty being levied. -Vineet Mittal said.

The initial petition seeking an investigation into the anti-dumping of tempered glass was initiated by Gujarat Borosil Ltd in June 2016. 

It is to be noted that currently, an investigation is underway to levy anti-dumping duty on imported solar cells and solar modules originating from China and looking at above judgement, it seems that it might come in to effect soon.


Sheela Mamidenna - Aug 21, 2017 12:00 IST