Solar panels imported into India from China, Malaysia, Taiwan under DGAD scanner

The Dollar Business Bureau

India has once again initiated a probe into the dumping of solar panels by China, Malaysia and Taiwan. The Directorate General of Anti-Dumping Duty (DGAD) has issued an initiation notification no.O1-33/2017o-of Antidumping investigation dated 21st July 2017 to ascertain if the dumping is hurting the domestic industry.

According to a petition submitted by the Indian Solar Manufacturers Association (ISMA) to the DGAD, it wanted a thorough investigation into the imports of “Solar Cells whether or not assembled partially or fully in modules or Panels or on glass or some other suitable substrates” from the above-mentioned countries. 

ISMA has also claimed that a retrospective duty be levied on the importers as there is no known difference between the subject goods exported from China, Malaysia and Taiwan and that produced by the domestic manufacturers. 

As submitted by the petitioner, Solar Cells and Modules produced by the domestic industry and that imported from subject countries are comparable in terms of essential product characteristics such as physical & chemical characteristics, manufacturing process & technology, functions & uses, product specifications, pricing, distribution & marketing and tariff classification of the goods. Consumers can use and are using the two interchangeably. ISMA has further claimed that the two are technically and commercially substitutable and, hence, should be treated as ‘like article’ under the Rules.

ISMA has also claimed export price for the subject goods on the basis of Impex Statistic Services data. Adjustments have been claimed on account of ocean freight, marine insurance, commission, inland freight expenses, port expenses and bank charges to arrive at the net export price at ex-factory level. 

The DGAD has compared the normal value with the export price at ex-factory level and has found that the normal value of the subject goods in the subject countries are higher than the ex-factory export price, indicating that the subject goods are being dumped into the Indian market.

A similar petition was filed in 2012 but a fine was not levied. However, the government is now considering levying anti dumping duty as cheap solar equipment imports, especially from China, are flooding the Indian markets causing injury to the domestic manufacturers as well as bringing about a decrease in the number of projects reserved for the Indian solar industry as per WTO trade rules.