The Directorate General of Trade Remedies (DGTR) has recommended the extension of anti-dumping duty on the imports of Ethylene Vinyl Acetate (EVA) backsheets originating in or exported from China for five years.

DGTR, in its recent investigation, found that EVA backsheets continue to be exported to India at prices below the normal value, resulting in their dumping.

The directorate has recommended an anti-dumping duty of $590 /MT on EVA backsheet originating in or exported from China from Changzhou Sveck Photovoltaic New Material Company and $897 /MT for all other producers.

In 2019, the government imposed anti-dumping duties on EVA backsheet imports from China, Malaysia, Saudi Arabia, and Thailand, with the existing duty period scheduled to conclude in March 2024.

DGTR found that after the imposition of duties, several new companies have started producing the subject goods in the country. The Indian capacity to produce the subject goods has increased by over 400% since, which clearly indicates the beneficial effects of the anti-dumping duties.

However, DGTR found there are significantly unutilized capacities available with Chinese exporters. The evidence filed by the domestic industry clearly indicates that there is a “high probability of oversupply” in the EVA market of China.

It said there is sufficient evidence to indicate that the revocation of the anti-dumping duty against China at this stage will lead to the continuation of dumping, and there is a likelihood of further aggravated dumping and consequent injury to the domestic industry.

While the duties are in place against imports from China, Malaysia, Thailand, and Saudi Arabia, the domestic industry has only sought the continuation of duties against China.

DGTR initiated the probe after Indian module manufacturer RenewSys India approached it. According to RenewSys, the Chinese fluoro backsheet is identical to what is manufactured in India. There are no differences in the technical specifications, quality, functions, or end-uses of the dumped imported backsheets.

The investigation period was from April 2022 to March 2023. However, the ‘injury’ period under investigation will cover the duration from April 2019 to March 2020, April 2020 to March 2021, and April 2021 to March 2022, as well as the period of investigation.

EVA backsheet is a polymer-based component used in the manufacturing of solar modules for the encapsulation of solar cells performing adhesion and cushioning functions.

In June 2022, the Ministry of Finance imposed an anti-dumping duty on the import of fluoro backsheets (excluding transparent backsheets) from China to remove the harm being caused to the domestic market.