Now Trade Issues For Solar Aluminum Frames

• DGTR has initiated an anti-dumping investigation into Chinese imports of aluminum frames for solar panels into India
• It has found prima facie evidence of the domestic industry being adversely impacted by the imports
• The investigation has been initiated on the petition of Vishakha Metals that claims to be the only company producing aluminum frames for solar panels in India

Acting on the petition of a Gujarat based solar component manufacturer Vishakha Metals Private Limited, the Indian Ministry of Commerce & Industry, has initiated an anti-dumping investigation into the imports of aluminum frame for solar panels, originating in or exported from China.

Aluminum frames are significant since these protect the solar module and its internal component from thermal and mechanical tensions.

According to Vishakha Metals website, the company is into the production of EVA encapsulants, backsheet films along with aluminum frames for solar panels.

Claiming to be the sole producer of aluminum frames for solar in India, Vishakha Metals says that its business performance has been adversely impacted as Chinese companies dump their products in the Indian market at a 'injurious price for the domestic industry'.

In the investigation initiation notification on June 30, 2023, the Directorate General of Trade Remedies has considered prima facie evidence of injury being caused to the domestic industry by dumping imports from China. It further adds that the imports are 'materially retarding' the establishment of the industry in India.

The period of investigation covers 12 months between April 2022 to March 2023, while the period of injury covers the periods from April 2019 to March 2020, from April 2020 to March 2021, and from April 2021 to March 2022.

Interested stakeholders are asked to submit their comments to the investigation.

This isn't the 1^st time India has initiated anti-dumping investigation into Chinese products for the Indian solar module manufacturing industry. In March 2022, DGTR recommended 5-year imposition of anti-dumping tariffs on Chinese fluoro backsheets (see India: AD Tariffs On Chinese Fluoro Backsheets).

Additionally, there is already a Basic Customs Duty (BCD) on imported solar cells and modules, including from China that has been impacting India's solar installations. However, the Government of India has extended the imposition of using only locally produced solar modules for government projects to ease the supply chain. Lowering of module prices globally should also act as an incentive for Indian developers to look for Chinese modules till the DGTR investigation reaches a conclusion (see Inventory Draws May Dampen Chinese PV Exports).