Commerce Ministry ends anti-dumping probe into solar cell imports from Thailand, Vietnam and China


New Delhi: Following a request from the Indian Solar Manufacturers’ Association, the commerce ministry has concluded an anti-dumping investigation into the import of solar cells from China, Thailand and Vietnam (ISMA).

Following a complaint by the association, the ministry’s investigative arm, the Directorate General of Trade Remedies (DGTR), launched a probe into the suspected dumping of “solar cells, whether combined in modules or panels,” exported from the three countries.

“In view of the request made by the Domestic Industry, ISMA, the Authority hereby terminates the investigation initiated on 15th May, 2021… said in a notification.

The Anti-dumping Rules of 1995 allow closure of investigation in certain circumstances including withdrawal of an application by the domestic industry which was the subject of investigation. As per the notification, the candidate withdrew his/her application by email on July 14, 2022.

From April 1 this year, the government imposed a customs duty of 25% on solar cells and 40% on solar modules after the investigation began.

As per ISMA’s submission to the Directorate, the tariffs levied cover the entire range of product under investigation and have significantly reduced, though not completely, the price pressures being experienced by the local industry as a result of dumping.

Though the revenue department takes the final decision on levying the duty, the DGTR makes the recommendation. Dumping, as used in international trade, is the practice of a nation or business exporting goods at a price lower than its domestic market value.

Dumping the price of that product in the importing country affects the margins and profitability of manufacturing companies.

In India, the duty is levied only after a comprehensive investigation by a quasi-judicial organization like the DGTR. It aims to guarantee ethical business practices and level the playing field for domestic producers.

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