Domestic producers of solar glass will no longer get anti-dumping tariff protection against imports from China as the Department of Revenue has rejected the recommendation of the Directorate General of Trade Remedies (DGTR) for continued imposition of such duties on textured tempered glass from China for another two years.
The decision will lead to the expiry of anti-dumping duties that were imposed on solar glass from China in August 2017, as such duties expire after five years from the date of such imposition, unless extended after a sunset review investigation. Textured tempered glass or solar glass is used as a component in solar photovoltaic panels and solar thermal applications.
“...the Central government, after considering the final findings of the designated authority, has decided not to accept the aforesaid recommendations,” as per an office memorandum circulated by the Tax Research Unit of the Department of Revenue on August 17.
While the Department of Revenues is part of the Ministry of Finance, the DGTR operates under the Department of Commerce. The DGTR, on May 13, 2022, had come up with the final findings of its sunset review, where it stated that its investigations showed that textured glass was being continued to be imported from China at prices below normal value resulting in continued dumping. The sunset review investigation was initiated based on an application filed by Borosil Renewables, the sole producer of the item in India.
Higher volume of import likely
“The volume of imports from China PR is likely to increase significantly, considering the dumped and injurious price at which goods have been exported from the subject country, high export orientation of producers/exporters and significant surplus capacities with producers/exporters in the subject country,” the DGTR had observed.
The directorate had recommended duties in the range of $192.82 per tonne and $302.65 per tonne for two years. However, the recommendation has now been rejected by the Department of Revenue.
Companies that benefit
The user industry that could benefit from the decision includes Mundra Solar, Vikram Solar, Tata Power Solar System and Topsun Energy.
China is the largest producer of glass and glass products, producing over 97 per cent of the global output of solar glass in 2020, according to data submitted by Borosil Renewables. China also has the largest number of solar-glass production lines in the world with its total capacity about 77 times of the total capacity of the domestic industry, the data further highlighted.