Government starts probe into dumping of solar cells by China, US

NEW DELHI: The government has initiated a probe into alleged dumping of solar cells by Malaysia, China, Chinese Taipei and the US following complaints by domestic players.

The Directorate General of Anti-Dumping and Allied Duties ( DGAD) under the Commerce Ministry has begun an investigation as it "finds sufficient prima facie evidence of dumping" of the cell, originating in or exported from these countries, the ministry said in a notification.

"...(the DGAD would) determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry," it said.

The Solar Manufacturer's Association has filed the application for investigation on behalf of Indosolar Ltd), Jupiter Solar Power and Websol Energy Systems Ltd.

The period of investigation is from January to December 2011. However, for the purpose of analysing injury, the data of previous three years of 2008-2009, 2009-2010 and 2010-2011 would also be considered, it added.

The action is against solar cells imported from these countries "whether or not assembled partially or fully in modules or panels".

Further, it said the applicant has requested for retrospective imposition of duty as the injury is claimed to be caused to the domestic industry by massive dumping of the cells in relatively short time.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap imports of any product. As a counter-measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair-trade practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters resorting to dumping.

Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from product to product and country to country.

India has initiated 275 anti-dumping investigations between 1992 and March 2012, involving 42 countries.

The countries prominently figuring in anti-dumping investigations are China, Korea and Singapore and the major product categories on which anti-dumping duty has been levied are chemicals and petrochemicals, pharmaceutical, steel and consumer goods.