Chinese solar panels may cost more: Directorate suggests 70% safeguard duty
DGS acknowledges serious
injury to domestic industry; no duty proposed on imports from the EU and US
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NEWS : The Directorate
General of Safeguards Duty (DGS), in its preliminary report investigating
the dumping of solar cells, (whether or not assembled in modules or panels),
has suggested a 70 per cent safeguards duty on imports from China. The DGS has
identified ‘serious injury’ to the domestic industry caused due to increasing
imports and declining prices of Chinese solar panels.
“I recommend that pending a final
determination, considering the average cost of sales by the Domestic Industry
arrived at on the basis of import quantity ratio of solar cells and solar
modules (confidential), a reasonable return on the cost of sales excluding
interest, the present level of import duties, and the present average import
prices, a provisional Safeguard Duty be imposed at the rate of 70 per cent
(Seventy percent) ad valorem on the imports of the PUC (solar cells),” said the
preliminary report of the DGS.
The DGS has not suggested any duty
on the imports from the US and the European Union, citing very low imports. The
suggested duty is based on the submission made by the domestic industry and
would be subject to further investigation and approval from Finance Ministry,
thereafter.
The investigation is a response to
the application by Indian Solar Manufacturers’ Association (ISMA) which has
pleaded the imports led to considerable damage to the indigenous sector; a
retrospective duty should be imposed on the importers. It said that around 80
per cent of the market has been taken away by the imports.
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