import of solar cells: India terminates anti-dumping investigation on imports of solar cells from China, Thailand and Vietnam

The Department of Commerce terminated an anti-dumping investigation into the import of solar cells from China, Thailand and Vietnam following a request from the Indian Solar Manufacturers Association (ISMA).

On May 15, 2021, the Ministry’s investigative arm, the Directorate General of Trade Remedies (DGTR), opened an investigation into the alleged dumping of “solar cells whether or not assembled into modules or panels” exported from the three countries, following a complaint from the association.

“In view of the request made by the national industry, ISMA, … the authority hereby closes the investigation initiated on May 15, 2021 … against imports of solar cells assembled or not in modules or panels exported by these countries,” DGTR said in a notification.

The 1995 anti-dumping rules provide for termination of an investigation in certain situations, including withdrawal of the application by the affected domestic industry at whose request the investigation was initiated.

The notification indicates that the applicant, by email dated July 14, 2022, has withdrawn his application.

After the launch of the investigation, the government levied tariffs of 25% on solar cells and 40% on solar modules from April 1 this year.

ISMA argued to management that the duties imposed covered the entire scope of the product under investigation and had alleviated the price pressure experienced by the domestic industry as a result of the dumping. to a considerable extent, but not totally, says the DGTR notification.

While the DGTR recommends the duty, the Ministry of Revenue makes the final decision to impose it. In the language of international trade, dumping occurs when a country or company exports an item at a lower price than the price of that product in its domestic market.

Dumping has an impact on the price of this product in the importing country, affecting the margins and profits of manufacturing companies.

The duty is imposed only after a thorough investigation by a quasi-judicial body, such as the DGTR, in India. It aims to ensure fair trade practices and create a level playing field for domestic producers.

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