India may continue with the safeguard duty on solar cells imported from China, Thailand, Vietnam

New Delhi: India may continue with the safeguard duty on solar cells imported from China, Thailand and Vietnam for one year period effective July 31. However, other developing countries including Malaysia and Indonesia are exempt from the duty, the Directorate General of Trade Remedies (DGTR) said in its final findings of review investigation for continued imposition of Safeguard duty on imports of “Solar Cells whether or not assembled in modules or panels”.

“As the imports from developing nations...except China PR, Thailand and Vietnam do not exceed 3% individually and 9% collectively, the import of product under consideration originating from developing nations except China PR, Thailand and Vietnam will not attract Safeguard Duty,” DGTR said.

While the domestic industry had sought extension of the safeguard duty further for a period of four years, DGTR has recommended a safeguard duty of 14.90% ad valorem for the first six months followed by 14.5% ad valorem in the next six months. The existing duty was imposed on July 30, 2018. DGTR, under the commerce and industry ministry, recommends the duty but the finance ministry imposes it.


As per the findings, the imports have “not only continued to cause serious injury to the Domestic Industry but also threaten to cause serious injury to the domestic producers” and it will be in the public interest to continue the imposition of safeguard duty on imports.