The government has extended the timeline up to May 11 for the industry to file responses on continuing the safeguard duty on import of solar cells. The extension was granted as the nationwide lockdown made it difficult to make submissions within the timeframe.

“Various interested parties have expressed inability to file responses to questionnaire within April 30, 2020 due to imposition of nationwide lockdown (to contain Covid-19) by the Government of India. Based on these requests, the Director General has granted final extension of time to May 11 to file responses to the questionnaire with respect to the investigation,” said a circular issued by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce & Industry.

Safeguard duties can be imposed on items, over and above existing customs duties, if it can be conclusively proved that a steep increase in imports over a period of time resulted in injury and disruption for local businesses.

Producers’ complaint

The DGTR, in July 2018, issued its final findings on an application filed by five Indian producers through the Indian Solar Manufacturers’ Association seeking safeguard duties on imports of solar cells and panels. The complainants said the steep increase in imports of solar cells, whether or not assembled in modules or panels, was hurting local producers.

Based on the DGTR’s report, safeguard duties of 25 per cent were imposed from July 30, 2018, to July 29, 2019, and at 20 per cent from July 30, 2019, to July 29, 2020. The duties were applicable to imports from China, Malaysia and other developed countries.

With the additional duties now set to end in July 2020, the domestic industry has sought continuation of the duties for a further period of four years.

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