The Directorate General of Trade Remedies (DGTR) has issued its preliminary findings in the anti-dumping investigation on the imports of aluminum and zinc-coated flat products originating in or exported from China PR, Vietnam, and Korea RP.
In solar projects, the panels are mounted on module mounting structures which are made up of aluminum and zinc-coated flat products.
After examining the submissions made by the parties, DGTR found that there is a significant increase in the imports of subject goods from concerned countries in absolute terms as well as in relation to the production and consumption in India.
During the investigation, the authority also found that the product under consideration has been exported to India from China PR, Vietnam, and Korea RP, below their normal values. The domestic industry has suffered material injury. Material injury has been caused by the dumped imports of subject goods from these countries, it noted.
In its findings, the DGTR underlined that the investigation was initiated and notified to all the interested parties and an adequate opportunity was given to the exporters, importers, and other interested parties to provide positive information on the aspect of dumping, injury, and the causal links.
The DGTR was of the view that the imposition of a provisional duty is required to offset dumping and injury, pending completion of the investigation. Therefore, DGTR found it necessary to recommend the imposition of provisional anti-dumping duty on the imports of subject goods from China PR, Vietnam, and Korea RP.
As the next step, the DGTR has invited comments on the preliminary findings from all interested parties within 21 days from the date of issue of these preliminary findings. The comments received will be examined in the final findings. The DGTR will conduct an oral hearing in terms of rule 6(6) to allow all the interested parties to present their views relevant to the investigation. Issues and concerns raised during the oral hearing will be examined in the final findings.
The DGTR will intimate the date of oral hearing later.
Mercom previously reported recently that the National Solar Energy Federation of India (NSEFI) had written to the Ministry of New and Renewable Energy (MNRE) expressing its concerns over the levy of anti-dumping duty on aluminum and zinc-coated flat products originating from China, South Korea, and Vietnam. According to NSEFI, approximately 49 GW of solar projects are under various stages of development, and in the next 18 months, they would require up to ~1,500,000 tons of aluminum and zinc-coated flat products.
In its letter, NSEFI has stated that the Indian manufacturers of aluminum and zinc-coated flat products do not have the required capacity to meet the demand and the levy of such a duty will delay project commissioning.
Regarding the contention of the interested parties that the imposition of anti-dumping duty will have serious implications on the availability of subject goods in India, the DGTR has noted that the purpose of anti-dumping duties, in general, is to eliminate injury caused to the domestic industry by the unfair trade practices of dumping so as to re-establish a situation of open and fair competition in the Indian market, which is in the general interest of the country.
It noted that imposition of anti-dumping measures would not restrict imports from the subject countries in any way, and, therefore, will not affect the availability of the products to the consumers. The DGTR recognizes that the imposition of anti-dumping duties might affect the price level of the product in India. However, fair competition in the Indian market will not be reduced by the anti-dumping measures.
According to the DGTR, “On the contrary, the imposition of anti-dumping measures will remove the unfair advantage gained by dumping practices, arrest the decline of the domestic industry, and help maintain the availability of wider choices to the consumers of subject goods. Consumers can still maintain two or even more sources of supply.
So far in India, anti-dumping duty has been levied on solar glass and EVA sheets. Mercom recently reported that of late, aggressive bidding had taken a toll on mounting structures as the quality is being sacrificed to cut costs, which could have a negative consequence on hundreds of solar projects that are supposed to last 25 years in any weather condition. Now, the levy of this duty may tempt contractors and developers to cut more corners.
Image credit: English: Petty Officer 1st Class Richard Doolin [Public domain] via Wikimedia
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.