The DGTR, an investigation branch of the Ministry of Commerce, has recommended that the anti-dumping duty on Chinese solar glass be maintained for two years in order to protect domestic players from cheap imports. In a statement, the Directorate General of Trade Remedies (DGTR) said that continued anti-dumping duties were required on “textured tempered coated and un-coated glass” from China.
The product is also known by different names in the market 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 DGTR said, “The designated authority deems it appropriate to recommend continuation of anti-dumping duty on import of subject goods from the subject country for another 2 years.
The department has recommended tariffs between US 192 192.82 per ton and US 30 302.65 per ton. The final decision to impose this duty is taken by the Ministry of Finance. In its investigation, DGTR concluded that the product was being exported to India at a lower price than normal and was being dumped continuously.
“Domestic industry continues to suffer due to dumped imports from China and imports from a related company of Chinese producers in Malaysia,” it said.
In the event of the expiration of the tariff, the DGTR states that there is a clear possibility of dumping “significant amounts” of goods and consequently damaging the domestic industry. China is one of the largest producers of this glass. There is considerable unused capacity, a fraction of which is sufficient to meet the demand of the whole of India.
Borosil Renewables Ltd filed an application for sunset review of the anti-dumping investigation into the import of this glass from China. In August 2017, the Department of Revenue imposed tariffs.
In international trade terms, dumping occurs when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping affects the price of that product in the importing country, hurting the margins and profits of manufacturing firms.
Under global trade rules, a country is allowed to impose tariffs on such dumped goods in order to provide an equal playing field for domestic manufacturers. In India, the duty is levied only after a thorough investigation by a quasi-judicial body like DGTR.
In its investigation, the department will have to decide whether the imported products are affecting the domestic industry.