Indian trade body recommends sticking with duties on Chinese solar parts

India must continue to impose anti-dumping duties on imports from China of a key ingredient in manufacturing solar energy modules, an arm of the ministry of commerce and industry said.

Levying taxes on Chinese ethylene vinyl acetate (EVA) sheets is mandatory to offer a level playing field for domestic companies, the Directorate General of Trade Remedies said, while recommending dropping anti-dumping duties against Malaysia, Thailand and Saudi Arabia.

EVA is a flexible and durable plastic material, commonly used as a key component in the production of solar panels. It acts as an encapsulating agent for solar cells, providing protection against moisture and impact while maintaining transparency for efficient solar energy conversion.

The trade body said there is sufficient evidence to indicate that a revocation of duties on EVA sheets against China will lead to entry of dumped imports with “increased intensity”, which could hurt the domestic industry.

“There are significant unutilized capacities available with Chinese exporters. The evidences filed by the domestic industry clearly indicate there is a ‘high probability of oversupply’ in the EVA market of China. The said report also predicts that the ‘China’s EVA industry will remain basically flat in the next five years’,” it said.

“Post imposition of duties, several new producers have started producing the subject goods in the country. The Indian capacity of producing the subject goods has increased by over 400%, which clearly indicates the beneficial effects of the antidumping duties,” the trade body said.

The continuation of duties for an additional period of five years will provide a level playing field to the domestic producers of the subject goods, it added.