The Directorate General of Trade Remedies (DGTR) has recommended the imposition of anti-dumping duty on the imports of the Ethylene Vinyl Acetate (EVA) sheets for solar modules imported from China PR, Malaysia, Saudi Arabia, and Thailand a period of 5 years.

In April 2018, the office of Directorate General of Anti-Dumping and Allied Duties (DGAD)  (now DGTR) had initiated an investigation on the import of EVA sheets for solar modules imported from China PR, Malaysia, Saudi Arabia, South Korea, and Thailand.

Later, imports from South Korea were excluded from the investigation as DGTR found that these imports are mostly EVA resins, the raw material for EVA sheets.

The petition was filed by Renewsys, Vishakha Renewables Private Limited, and Allied Glasses Private Limited. In the petition, it was mentioned that there is no known difference between the EVA sheets imported from the above-mentioned countries and that produced by the petitioners, and the consumers can use the two interchangeably. EVA sheets are integral to the process of production of solar modules. In the petition, Renewsys said that they can produce EVA sheets of all widths and thicknesses as desired by solar module manufacturers in India.

The investigation focused on the EVA sheets exported to India between October 1, 2016, and September 30, 2017.

The duty rates as recommended in the chart below are applicable for exports of EVA sheets manufactured by specified producers. The customs should verify the name of the producer at the time of clearance of EVA sheets.

Parties opposed to the anti-dumping duty argued that the domestic industry is not utilizing their capacities efficiently. Indian producers are operating at only 25 percent capacity utilization and producing only 4,151 MT against the total demand of 10,396 MT. Such a huge gap in demand and supply has caused an increase in the imports of EVA sheets from these countries.

The Authority notes that the total demand in India has substantively increased consistently. However, the market share of the domestic industry has decreased from 68 percent in the base year to 28 percent during the period of investigation. At the same time, the market share of imports from the subject countries increased from 24 percent in the base year to 60 percent in the period of investigation.

DGTR opined that the purpose of anti-dumping duties is to eliminate injury caused to the domestic industry by the unfair trade practices of dumping and to re-establish open and fair competition in the Indian market. Imposition of anti-dumping measures would not restrict imports from any country and would not affect the availability of the products to the consumers.

It further said, “Fair competition in the Indian market will not be reduced by the anti-dumping measures, particularly if the levy of the anti- dumping duty is restricted to an amount necessary to redress the injury to the domestic industry. On the contrary, the imposition of anti-dumping measures would remove the unfair advantages gained by dumping practices, would prevent the decline of the domestic industry and help maintain the availability of wider choice to the consumers of the subject goods.”