Govt terminates anti-dumping probe against China, Thailand and Vietnam

The commerce ministry has terminated an anti-dumping probe into import of solar cells from China, Thailand and Vietnam following a request by the Indian Solar Manufacturers Association (ISMA)

The commerce ministry has terminated an anti-dumping investigation into import of solar cells from China, Thailand and Vietnam following a request from the Indian Solar Manufacturers Association(ISMA).

On May 15, 2021, the ministry's investigation arm Directorate General of Trade Remedies (DGTR) initiated a probe into alleged dumping of "solar cells whether or not assembled into modules or panels" exported from the three nations, following a complaint by the association.

"In view of the request made by the domestic industry, ISMA,...the authority hereby terminates the investigation initiated on May 15, 2021... against the imports of solar cells whether or not assembled into modules or panels exported by these countries," the DGTR said in a notification.

Anti-dumping rules, 1995 provide for termination of a probe in certain situations which include withdrawal of application by the affected domestic industry at whose instance the investigation was initiated.

The notification said the applicant through an e-mail dated July 14, 2022 withdrew the application.

Post initiation of the probe, the government levied customs duties of 25 per cent on solar cells and 40 per cent on solar modules with effect from April 1 this year.

The ISMA has submitted to the directorate that the imposed duties cover the entire scope of the product under investigation and have alleviated the price pressure being suffered by the domestic industry due to the dumping to a considerable extent, though not fully, the DGTR notification said.

While the DGTR recommends the duty, the Department of Revenue takes the final decision to impose it. 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 the price of that product in the importing country, hitting the margins and profits of manufacturing firms.

The duty is imposed only after a thorough investigation by a quasi-judicial body, such as the DGTR, in India. It is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers.