The Ministry of Commerce of India has announced an anti-dumping investigation by the Directorate General of Trade Remedies (DGTR) into the imported aluminum solar module frames from China.

The investigation aims to recommend an appropriate anti-dumping duty that would adequately address the injury to the domestic industry.

The decision comes after Vishakha Metals, an Ahmedabad-based solar equipment manufacturer, filed a petition alleging that the aluminum solar module frames are being imported into India from China at dumped prices in significant quantities, resulting in material harm to the domestic industries.

The company provided evidence of injury to the domestic industry, including increased dumped imports, price undercutting, adverse effects on profitability, return on investment, and capacity utilization.

The imports of the subject goods at injurious prices have caused material harm to the domestic industry and are retarding its establishment, the petitioner said.

Based on the substantiated application and prima facie evidence, the DGTR, under Section 9A of the Customs Tariff Act and Rule 5 of the Anti-Dumping Duty Rules, initiated the investigation to determine the existence, degree, and effect of alleged dumping.

The investigation period covers April 2022 to March 2023, while the injury period encompasses April 2019 to March 2022.

Interested parties can provide their comments and suggestions on the proposed product scope and suggest product control numbers within 30 days from the date of this notification.

The application has been filed under the provisions of the Customs Tariff Act, 1975, and the Customs Tariff (Identification, Assessment, and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.

Aluminum frame plays a vital role in the assembly of solar modules. These frames protect the internal components, provide mounting attachment points, and contribute to the overall efficiency of solar panels. The subject goods encompass all types of aluminum frames used in solar applications.

Vishakha Metals claimed that the subject goods produced by the domestic industry are identical to those imported from China. There are no known differences in essential product characteristics, including physical and chemical attributes, manufacturing process, technology, functions and uses, product specifications, pricing, distribution, marketing, and tariff classification. Consumers can use and interchangeably utilize domestically produced and imported subject goods.

The company claimed to be the sole producer of the subject goods in India. While other processors are involved in surface treatment and fabrication, they do not produce aluminum frames.

The company has confirmed that it neither imports the product under consideration nor has any relationship with any producer/exporter of the subject goods in China or any importer of the subject goods in India. Therefore, Vishakha Metals satisfied the eligibility criteria of a domestic industry in terms of Rule 2(b) and possessed the standing to apply.

The company cited Article 15(a)(i) of China’s Accession Protocol and claimed that Chinese producers must demonstrate that market economy conditions prevail in the industry producing the subject goods.

If the responding Chinese producers fail to establish market-driven costs and price information, the normal value is proposed to be calculated as per the provisions of Para 7 of Annexure I to the Rules.

The normal value for China is determined based on the domestic industry’s production cost, considering selling, general, administrative expenses, and reasonable profits.

To this initiation, the export price of the subject goods from the subject country has been calculated using data from the Directorate General of Commercial Intelligence and Statistics.

Adjustments have been made for expenses such as ocean freight, marine insurance, commission, inland freight, port expenses, and bank charges. The comparison of the normal value and the export price at the ex-factory level indicates a dumping margin that exceeds the de-minimis level and is deemed significant.

Last September, DGTR recommended anti-dumping duty on certain flat-rolled aluminum products imported from China. Flat-rolled aluminum is used in manufacturing solar module mounting structures for rooftop solar projects.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.