The office of the Directorate General of Anti-Dumping & Allied Duties (DGAD) has recommended the imposition of an anti-dumping duty on castings for wind-operated electricity generators originating in or exported from China. The duties apply to castings that are: machined, raw, in finished or sub-assembled form, are part of a sub-assembly, or part of equipment or component meant for wind-operated electricity generators.
The DGAD’s office notified all interested parties and opportunity was given to exporters, importers, and other interested parties to provide positive information on the aspects of dumping, injury, and the link between them.
After conducting the investigation into dumping, injury, and the link, the DGAD’s office established positive subsidy margins as well as injury to the domestic industry caused by such subsidized imports. DGAD views the imposition of an anti-dumping duty as a requirement to offset dumping and injury.
During the investigation, DGAD’s office found that Dalian Huarui Heavy Industry Casting Co. Ltd., Zhejiang Jiali Wind Power Technology Co. Ltd., Jiangsu Sinojit Wind Energy Technology Co. Ltd., Changzhou Sinojit Wind Energy Tech. Co. Ltd., JiangyinHenghua Machinery Co. Ltd., JiangyinQixing Technology Co. Ltd., Jiangyin Changling New Energy Co. Ltd., Nantong Hongde Mechanical Co. Ltd., KOIZUMI Machinery Co. Ltd., Jiangsu Faw Foundary Co. Ltd., and Yeong Guan Energy Tech. Group Company Limited had run afoul of India’s anti-dumping norms.
The DGAD office has recommended imposing an anti-dumping duty of 18.48 percent on exports to India from Dalian Huarui Heavy Industry Casting Co. Ltd., 6.27 percent on exports from Zhejiang Jiali Wind Power Technology Co. Ltd., and 14.44 percent on exports from Jiangsu Sinojit Wind Energy Technology Co. Ltd. and Techtone HK ltd.
The DGAD office also recommended imposing an anti-dumping duty of 18.64 percent on exports from Nantong Hongde Mechanical Co. Ltd., 28.83 percent on exports from Jiangsu Faw Foundary Co., Ltd., 15.46 percent on exports from Ningbo Yeong Shang Casting lron Co. Ltd., and Yeong Chen Asia Pacific Co. Ltd.
Apart from recommending the imposition of duties on exports from the above-mentioned entities, the DGAD’s office has also specified an anti-dumping duty of 35.92 percent on other wind exports from any other exporter in China.
In its investigation, DGAD found:
- The product under consideration has been exported to India from China PR at rates below normal values.
- The domestic industry has suffered material injury due to these imports from China.
- Material injury has been caused by the dumped imports from China.
The DGAD’s office issued the recommendation as part of the completed investigation into the anti-dumping petition filed by Larsen & Toubro.
According to Mercom India Research, the lowest ever wind tariff of Rs.3.46 (~$0.054)/kWh was recently recorded in India. The imposition of an anti-dumping duty may lead to a spike in costs for the developers.
When asked about the effect that anti-dumping duties will have on the wind sector in India, a DGAD official told Mercom, “Imposing anti-dumping duties might slightly affect the price of castings but, to ensure fair competition in the Indian market, anti-dumping measures are necessary.” If we do not help the manufacturers here, the sector won’t truly grow, the DGAD official added.
Mercom previously reported that the DGAD’s office was investigating an anti-dumping petition filed against solar imports from China.
“This result is an ominous sign for the solar sector as DGAD just initiated anti-dumping investigation against solar imports from China, Taiwan, and Malaysia. It will be very important to watch if these duties will be accepted and imposed,” said Raj Prabhu, CEO of Mercom Capital Group.
Raj is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.