The Directorate General of Trade Remedies (DGTR) has initiated an investigation into the alleged dumping of solar encapsulants exported and originating from South Korea, Thailand, and Vietnam.

The investigation is in response to a complaint filed by RenewSys India, which alleges that the encapsulants dumped into India from the three countries are identical to those produced by the domestic industry.

The investigation will assess the consequent material injury to the domestic industry to determine the existence, degree, and effect of alleged dumping and to recommend the amount of dumping duty, which, if levied, would be adequate to remove the injury to the Indian industry.

The period of investigation is April 1, 2024, to March 31, 2025. The injury investigation will cover financial years 2022, 2023, and 2024.

DGTR stated that there is sufficient prima facie evidence that the product under consideration from the subject countries is being dumped in the domestic market. “The normal value and the export price have been compared at the ex-factory level, which prima facie establishes that the dumping margin is above the de minimis level and is significant with respect to the product under consideration from the subject countries.”

It said the applicant has claimed that the imports are undercutting the prices of the domestic industry. This has adversely impacted the industry’s profitability and capacity utilization.

The complainant has claimed that there are no differences in the technical specifications, functions, or end-uses of the dumped imports and the domestically produced goods. It stated that polyolefin encapsulants, EVA-POE-EVA encapsulants, and ethyl vinyl acetate are being dumped into India.

These products are polymer-based components used in the manufacturing of solar photovoltaic modules. They are used for encapsulating solar cells and perform both adhesion and cushioning functions. These are one of the most essential components that keep the glass, cell, and backsheet integrated and support the module mechanically during its service life.

DGTR stated that it has considered the normal value of the goods, taking into account the cost of production based in India, along with a reasonable profit margin for all the subject countries. The export price of the subject goods has been determined by considering their cost, insurance, and freight price.

Last September, Indian solar ancillary component manufacturers had urged the Ministry of New and Renewable Energy to mandate the use of domestically manufactured solar components, including encapsulants, in government projects to create a robust local supply chain and reduce the reliance on imports.

In February this year, the Ministry of Commerce finalized antidumping duties on imports of textured tempered solar glass from China and Vietnam.