The government has levied safeguard duty of 25 percent on solar imports from China and Malaysia. The Ministry of Finance (Department of Revenue) levied the duty based on the final recommendations proposed by the Directorate General of Trade Remedies (DGTR).
The safeguard duty of 25 percent on solar modules and cells will be in force from July 30, 2018.
The order issued by Ministry of Finance, GoI, is in spite of the Orissa High Court’s stay order up to August 20, 2018, put on the safeguard duty proceedings.
Recently, the Orissa High Court put a stay on the implementation of safeguard duty on solar modules and cells. The Orissa High Court was responding to a writ petition filed by solar project developer, ACME Solar.
The Ministry of Finance issued the order of levy of safeguard duty with effect on July 30, 2018, in the Gazette of India (Extraordinary), dated July 30, 2018.
Per the ministry, it has issued the order in exercise of the powers conferred by sub-section (1) of section 8B of the Customs Tariff Act, read with rules 12, 14 and 17 of the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997, after considering the final findings of the DGTR.
According to the Ministry of Finance, the duty will be levied as follows:
- 25 percent ad valorem (according to value in proportion) minus anti-dumping duty payable, if any, when imported during the period from July 30, 2018 to July 29, 2019 (both days inclusive).
- 20 percent ad valorem minus anti-dumping duty payable, if any, when imported during the period from July 30, 2019 to January 30, 2020 (both days inclusive).
- 15 percent ad valorem minus anti-dumping duty payable, if any, when imported during the period from January 30, 2020 to July 29, 2020 (both days inclusive).
The safeguard duty will apply to imports from China PR and Malaysia. The order was signed by Mohit Tewari, Under Secretary, GoI.
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.