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Ministry of Finance extends safeguard duty on solar cells, modules

Thursday, 30 Jul 2020
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The Union Ministry of Finance has extended the safeguard duty on imported solar cells and solar modules by another year as recommended by the Director-General of Trade Remedies (DGTR) earlier in July 2020.

A safeguard duty rate of 14.90 percent will be imposed on solar cells and modules starting for the first six months starting 30 July 2020 (minus anti-dumping duty payable, if any) and 14.50 percent for the subsequent six months.

The duties will not apply on any developing country with exception of China, Thailand and Vietnam.

The safeguard duties can be imposed on items, over and above the existing customs duties, if it can be conclusively proved that a steep increase in imports over a period of time resulted in injury and disruption for local businesses.

The DGTR, under the Commerce and Industry Ministry, carried out an investigation for a possible extension of the safeguard duty based on requests made by the domestic industry.

It observed that two years of protection has already helped the domestic industry improve its position, but it still needed some time to adjust. Therefore, a one-year extension of the safeguard duty should be allowed.

In July 2018, the DGTR had issued its findings on an application filed by five Indian producers through the Indian Solar Manufacturers’ Association seeking safeguard duties on imports of solar cells and panels.

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