The commerce ministry’s investigation arm DGTR has recommended for continuation of anti-dumping duty on Chinese solar glass for two years with a view to guard domestic players from cheap imports. In a notification, the Directorate General of Trade Remedies (DGTR) has said that continued imposition of anti-dumping duty is required on ‘textured tempered coated and un-coated glass’ from China.
The product in the market parlance is also known by various names such as solar glass, solar glass low iron and solar photovoltaic glass. It is used as a component in solar photovoltaic panels and solar thermal applications.
“The designated authority considers it appropriate to recommend continuation of anti-dumping duty on the imports of subject goods from the subject country for further period of 2 years…,” the DGTR has said.
The directorate has recommended duties in the range of USD 192.82 per tonne and USD 302.65 per tonne. The finance ministry takes the final decision to impose this duty. In its probe, the DGTR has concluded that the product is being exported to India at prices below normal value and that is resulting in continued dumping.
“The domestic industry has been constantly suffering losses due to price effect of dumped imports from China and also imports coming from related company of one of the Chinese producers in Malaysia,” it has said.
In the event of expiry of the duty, the DGTR stated that there is a clear likelihood of dumping of the goods in “significant volumes” and consequent injury to the domestic industry. China is one of the largest producers of this glass. There are significant unutilised capacities there, fraction of which is sufficient to cater to entire Indian demand.
Borosil Renewables Ltd had filed an application for sunset review of anti-dumping investigation concerning the imports of this glass from China. The revenue department had imposed the duty in August 2017.
In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping impacts price of that product in the importing country, hitting margins and profits of manufacturing firms.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.
In its probe, the directorate has to conclude whether the imported products are impacting domestic industries.