DGTR initiates review of safeguard duty on solar cells

The commerce ministry's DGTR has initiated a probe whether to continue with the imposition of safeguard duty on solar cells following an application made by domestic companies for the same.

An application for review and extension of safeguard duty for four more years has been filed by Mundra Solar PV Ltd, Jupiter Solar Power Ltd, Jupiter International Ltd, through the Indian Solar Manufacturers Association (ISMA).

They have sought continued imposition of the safeguard duty imposed on imports of 'solar cells whether or not assembled in modules or panels' into India to protect the domestic producers from increase in imports, according to a notification of the Directorate General of Trade Remedies (DGTR).

"On the basis of the prima facie evidence submitted by the domestic industry regarding evidence of serious injury and that the domestic industry is adjusting positively, the DGTR hereby, initiates a review investigation for examining the need for continued imposition of safeguard duty," it said.

In July 2018, the government had imposed safeguard duty for a period of two years on imports from China and Malaysia. It will be expired on July 29 this year.

As per the notification of the finance ministry, 25 per cent safeguard duty was imposed from July 30, 2018 to July 29, 2019, which was reduced to 20 per cent during July 30, 2019 to January 29, 2020 and 15 per cent during January 30, 2020 to July 29, 2020.

The period of investigation for the present probe will be from April 2016 to September 30, 2019.

This "period is long enough to take into consideration the market conditions and other factors that are relevant for ascertaining the need for continued imposition of safeguard duty," it said.