Government initiates anti-dumping investigation for the imports of EVA film for PV modules

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RenewSys India Pvt Ltd, who is the most significant producer of the Ethylene Vinyl Acetate (EVA) films in India, has supported its petition with the letters from Vishakha Renewables Pvt Ltd and Allied Glasses Pvt Ltd, who are also the producers of the same goods.

EVA is the polymer-based component used for encapsulation of solar PV cells performing adhesion and cushioning functions. It is one of the essential components which keeps the glass, cells and backsheet/rear glass integrated and support the module mechanically during its service lifetime.

For the initiation of the investigation, authority from Directorate General of Anti-Dumping & Allied Duties (DGAD) has decided to proceed with the petitioner’s claimed normal value on the basis of the cost of production in India, duly adjusted. For the price comparison, the authority mentioned that it would rely on the data of exporter.

The authority has informed that the normal value and the export price have been compared at ex-factory level, which shows positive dumping margin in respect of the subject goods from the subject countries. It mentioned that there is sufficient evidence that the normal value of the subject goods in the subject countries is higher than the ex-factory export price, indicating, prima facie, that the subject goods are being dumped into the Indian market by the exporters from the subject countries. The dumping margin is estimated to be above de minimus for all the subject countries.

RenewSys has submitted the evidence regarding the injury has taken place as a result of the alleged dumping in the form of an increased volume of dumped imports in absolute terms and concerning production and consumption in India, price suppression, price underselling. The authority mentioned that there is sufficient evidence of the ‘injury’ being suffered by the domestic industry caused by dumped imports from subject countries to justify initiation of an anti-dumping investigation.

With this new investigation, India’s solar trade conflicts show no sign of settlement in coming years. While, recently Indian Solar Manufacturers Association (ISMA) is planning new anti-dumping probe against imported solar modules after withdrawal of the earlier petition, citing exporting countries are dumping more aggressively.

Safeguard duty investigation is still under process, and India-U.S. solar tiff at World Trade Organizations (WTO) for the domestic content issue is still going with the latest action of forming a compliance body to verify India’s compliance to WTO rulings. Also, anti-dumping probe against solar glass coming from Malaysia filed by Gujarat Borosil Ltd.

However, the latest clarification from the finance ministry of India regarding solar modules has brought some relief for Indian solar market, especially for solar developers. The imported modules having bypass diodes are relieved from customs duty, as it is classified under section 8541.