Malaysia is now under the scanner of Directorate General of Anti-Dumping and Allied Duties (DGAD) for export of textured tempered glass (solar glass), whether coated or uncoated, from Malaysia to India.

The anti-dumping petition was filed by Gujarat Borosil, which claims to be the only producer of solar glass in the country. The investigation has been initiated on solar glass with a minimum of 90.5 percent transmission having a thickness not exceeding 4.2 mm (including tolerance of 0.2 mm) and where at least one dimension exceeds 1,500 mm, whether coated or uncoated.

The initiation notification claims that the normal value and the export price have been compared at ex-factory level, which showed significant dumping margin in respect of the subject goods from the subject country. The report goes on to say that there is sufficient evidence that the normal value of the subject goods in the subject country is significantly higher than the ex-factory export price, indicating, that the subject goods are being dumped into the Indian market by the exporters from the subject country.

“With regard to consequent impact of the imports on the domestic industry, it is noted that performance of the domestic industry has deteriorated in respect of parameters such as profits; return on capital employed and cash profits. The domestic industry is suffering financial losses, cash losses and negative return on investments. There is sufficient prima facie evidence of injury to the domestic industry caused by dumped imports from subject country to justify initiation of an anti-dumping investigation,” the petition filed by Gujarat Borosil stated.

Responding to the petition, the DGAD agreed that there is enough evidence of dumping of solar glass from Malaysia and of material injury to Borosil. The DGAD also agreed that there is evidence of a causal link between the alleged dumping and injury to the petitioner, leading to initiation of anti-dumping investigation.

The period of investigation is 15 months, starting from 1st October 2016 to 31st December 2017, and the injury investigation will cover the data of previous three years.

This new investigation comes on the heels of anti-dumping duty imposition in August 2017 on solar glass imported from China in the range of $64.04 per metric ton (MT) to $136.21/MT. The ruling followed the recommendation made by the DGAD on June 20, 2017 and the final tariffs imposed by the Ministry of Finance were the same as recommended by the office of the DGAD. The earlier petition was also filed by Gujarat Borosil.

According to other domestic solar manufacturers, Gujarat Borosil has essentially become a monopoly when it comes to solar glass manufacturing by filing petitions for anti-dumping investigations and blocking imports.

Several small manufacturers in the past have raised concerns that Borosil’s anti-dumping filing practices to block cheaper Chinese solar glass imported by smaller companies hurts their business as Borosil’s higher prices prevents them from competing with large module manufacturers. According to industry players Chinese solar glass can cost ₹2-3/W and cost of Borosil glass is estimated to be ₹3-4/W and sometimes more for smaller players.

Commenting on the development Mr. Pradeep Kheruka, Vice Chairman of Gujarat Borosil said, “According to us, imports into India of solar glass as happening now from Malaysia constitutes dumping. We have petitioned the designated authority in India to investigate our complaint and take remedial action if so warranted in law. Indian manufacturers are not recipients of even an iota of government support and must depend upon legal protection from predatory foreign manufacturers.”

The Indian renewable sector is currently mired in trade disputes –

• Indian Ministry of Finance has already imposed imposed an anti-dumping duty on tempered glass (solar glass) imported from China.
• DGAD has also recommended the imposition of an anti-dumping duty on castings for wind-operated electricity generators originating in or exported from China.
• There is pending anti-dumping investigation on solar cell and module imports from China, Taiwan and Malaysia.
• A 70 percent provisional Safeguard duty has been recommended by the Directorate General of Safeguards Customs and Central Excise to be levied on solar cells and modules imported from China and Malaysia for 200 days. The Madras High Court has put a temporary stay on the recommendation.
• A 7.5 percent port duty plus cess is being imposed on ports and developers are being allowed to pay a bank guarantee or a provisional bond to get the modules released provisionally from ports.

Considering the imposition of anti-dumping duty on tempered glass (solar glass) imported from China in the range of $64.04/metric ton (MT) to $136.21/MT by India last year, Malaysian imports to India may also incur similar anti-dumping duty.

In the Chinese case too, the product under consideration had been, solar glass with a minimum of 90.5 percent transmission having a thickness not exceeding 4.2 mm (including tolerance of 0.2 mm) and where at least one dimension exceeds 1,500 mm, whether coated or uncoated.

Image credit: Borosil

Updated article with Mr. Pradeep Kheruka’s quote