India Imposes 5-Year Anti-Dumping Duty on Chinese and Vietnamese Solar Glass

India has taken a significant step towards protecting its solar glass manufacturing industry by imposing anti-dumping duties on certain imports from China and Vietnam. This move, recommended by the Directorate General of Trade Remedies (DGTR), aims to counter the negative impact of cheap, dumped imports on domestic manufacturers.

What Is Anti-Dumping Duty?

An anti-dumping duty is a trade remedy measure used by a country to protect its domestic industries from unfair foreign pricing. When foreign exporters sell goods at a price lower than their home market or the cost of production, it can hurt local manufacturers. The anti-dumping duty seeks to level the playing field by neutralising the price distortion. 

Scope of the Duty: A Closer Look

The imposed duty specifically targets ‘Textured Toughened (Tempered) Coated and Uncoated Glass’, commonly known as solar glass. These are widely used in the manufacturing of solar panels and are also referred to as:

• Low Iron Solar Glass
  
   
• Solar PV Glass
  
   
• High Transmission Photovoltaic Glass
  
   
• Tempered Low Iron Patterned Solar Glass

Read More: India Levies Anti-Dumping Duty on 5 Chinese Products to Safeguard Local Markets. 

Duration and Rate of Duty

The Ministry of Finance has notified that the duty will be applicable for 5 years, starting from December 4, 2024, the date of imposition of the provisional anti-dumping duty. The duty rates will range between $570 to $664 per metric tonne, depending on the source and nature of the imports.

Investigation and Findings

The anti-dumping investigation was initiated following a petition by Borosil Renewables Ltd, representing the domestic solar glass industry. DGTR’s investigation revealed a substantial increase in the volume of dumped imports, both in absolute and relative terms. These imports were found to be undercutting domestic prices, adversely impacting the local industry’s performance and growth prospects.

WTO Compliance and Legal Framework

The imposition of such duties is in line with the World Trade Organisation (WTO) framework, to which both India and China are signatories. Under WTO norms, countries are permitted to act against dumping when it causes material injury to the domestic industry, provided there is substantial evidence to justify the claim.

Broader Implications for India’s Trade Policy

This is not India’s first anti-dumping measure. Over the years, India has imposed similar duties on various products, particularly from China, to curb the influx of underpriced goods. The broader goal is to encourage fair trade practices, stimulate domestic manufacturing, and reduce dependency on foreign imports.

Industry Reaction

In a filing to the BSE, Borosil Renewables Ltd welcomed the decision, stating that it will help foster the growth of domestic manufacturing in the solar glass sector. The company expressed confidence that the duty will encourage further investments and capacity building within India.

Conclusion

The 5-year anti-dumping duty on Chinese and Vietnamese solar glass marks a proactive approach by the Indian government to ensure the sustainability and competitiveness of its domestic solar manufacturing sector. By addressing the issue of price dumping, India reinforces its commitment to safeguarding domestic industries while aligning with international trade norms.

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