Waaree Energies shares drop 5% after US customs probe into alleged tariff evasion

Shares of India’s Waaree Energies fell 4.76% to Rs 3,281. on the NSE on Friday after U.S. customs officials opened an investigation into whether the solar panel maker bypassed tariffs on Chinese-made cells and panels by labelling them as “Made in India.”

According to a memo shared with attorneys for Waaree and the American Alliance for Solar Manufacturing Trade Committee, the U.S. agency is investigating whether Waaree mislabelled solar cells and panels made in China as Indian products to sidestep long-standing anti-dumping and countervailing duties imposed on Chinese imports.

The Customs memo cited a “reasonable suspicion” that some of Waaree’s imported products lacked proper labelling to indicate they were subject to U.S. tariffs, raising concerns about tariff evasion. In response, the agency is taking protective measures, including requiring cash deposits from the company during the ongoing investigation.


The American Alliance for Solar Manufacturing Trade Committee, which includes companies like Qcells (Hanwha Corp) and First Solar, had earlier requested the investigation. The group also applauded the probe, stating that Indian solar products had been among the cheapest in the market, and alleged that the use of Chinese components without paying applicable duties could be a contributing factor.

Waaree has not yet publicly responded to the allegations. A company spokesperson and legal representatives were unavailable for immediate comment, according to reports.

U.S. imports of solar panels from India have surged in recent years, particularly after Washington imposed tariffs on Southeast Asian suppliers. The ongoing investigation could carry significant implications for Indian solar exporters, especially amid calls from the Alliance to expand tariffs on products from India, Indonesia, and Laos.

Also read: Maruti Suzuki becomes world’s 8th most valuable carmaker, surpasses Ford, GM and Volkswagen

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)