G/SG/N/8/IND/31/Suppl.3  
G/SG/N/10/IND/22/Suppl.2  
G/SG/N/11/IND/17/Suppl.3  
 
3 August 20 20 
(20-5386) Page: 1/2 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT  
ON SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
NOTIFICATION OF THE EXTENSION OF THE EXISTING MEASURE  
NOTI FICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
INDIA 
Solar Cells whether or not assembled in modules or panels  
Supplement  
The following communication, dated 31 July 2020, is being ci rculated at the request of the delegation 
of India.  
 
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Pursuant to Article 12.1( b) of the WTO Agreement on Safeguards (Safeguards Agreement), India is 
notifying its findings of a serious injury or threat of serious injury caused by increased imports of 
"solar cells whether or not assembled in modules or panels ". 
The safeguard duty was initially imposed on Solar Cells whether or not assembled in modules or 
panels  (PUC) for 2 years , i.e. from 30 July 2018 to 29 July 2020. Thereafter, based on the prima  facie 
evidence  submitted by the domestic industry regarding s erious injury to domestic industry and the 
Director General of Trade Remedies (DGTR) having satisfied itself that  the domestic  industry was 
adjusting positively  to the increased imports, a review investigation for further continuance of 
safeguard duty was initiated on 3 March 2020. Based on the (a) information presented in the petition 
by the domestic industry, additional information presented by various interested parties, various 
submissions made by the interested parties and other primary and secondary r ecords available, and 
(b) verification of information and evidence presented by the interested parties to the extent 
considered necessary, DGTR examined the same and came out with the final conclusions and 
recommendations thereof. Amongst others, the gist of final findings are:  
i. While the imports of PUC were 6,375 MW in 2016 -17, these increased to 9,790 MW in 
2017-18. The duties were put in place with effect from 30 July 2018. As a consequence 
of imposition of duties, import volume came down to 8,010 MW duri ng 2018 -19. But 
this decline in imports was short -lived as the import volume for the most recent period , 
i.e. 2019-20, (Annualized - Actual data till September 2019) was 8,754 MW.  
ii. There has been a significant increase in imports of the PUC in absolute terms  as well 
as in relation to total domestic production over the entire P eriod of Investigation (P OI). 
iii. The domestic industry is continuing to suffer serious injury which is evidenced from an 
overall consideration of its performance, particularly on the basis of its capacity 
utilization which is sub -par considering the demand of the PUC, increasing levels of 
inventory and negative profitability. Though the Domestic Industry has improved its G/SG/N/8/IND/31/Suppl.3 • G/SG/N/10/IND/22/Suppl.2 • G/SG/N/11/IND/17/Suppl.3  
 
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  production and sales and reduced its losses, its position  continues to be fragile and 
would relapse into further serious injury if the safeguard duty is discontinued.  
iv. Import prices have continued to decline over the injury period , i.e. 2016 -2017 to 
2019-2020.  
v. Without safeguard duty, import prices are below the selling price of the 
Domestic  Industry and would undercut the prices of the Domestic Industry . 
vi. If safeguard duty is discontinued, there  is every likelihood that the severe price 
suppression and depression being suffered by the Domestic Industry before the 
impositi on of safeguard duty would recur and the profitability of the Domestic  Industry 
will get further adversely impacted . 
vii. The continuance  of safeguard duty will prevent complete erosion of manufacturing 
base of solar industry in the country which has made subst antial  investments.  
viii. The Domestic lndustry  has though not fully adhered to the adjustment plan but ha s 
made serious efforts to implement its adjustment plan which has improved their 
performance and will further lead to its increased competitiveness vis -a-vis imports 
and also lower cost of the PUC to the domestic consumer in the long run.  
The DGTR concluded that the imports of PUC  into India, have not only continued to cause serious 
injury to the Domestic Industry but also threaten to cause serious injury to the domestic producers 
of PUC. The DGTR has thus concluded that it will be in the public interest to continue the imposition 
of safeguard duty on imports of the PUC into India in terms of Rule 18 read with Rule l2 of the 
Customs Tariff (Identification And Assessment of Safeguard Duty) Rules'97.  It further noted that the 
Domestic Industry has sought extension of the Safeguard duty further for a period of four years with 
progressive liberation of Safeguard duty to 14.95 %, 14.90 %, 14.85% and 14.80 % in the fo ur 
years respectively.  
Keeping in view that 2 years of protection has already been provided and DI has improved its  position 
but needs some more time to adjust, DGTR recommended that extension of Safeguard duty for a 
period of another one year would be ade quate. It also concluded that during this period, the existing 
quantum of duty would continue to be liberalized at a pace so as to ensure that adjustment by DI is 
attained within the span of one year only.  
PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
Accord ingly, the DGTR, the competent authority , had recommended the following safeguard duty 
imports of PUC with effect from 30 July 2020, which was considered to be appropriate to continue 
protection to the domestic industry to facilitate further positive adjus tment:  
• First six months -14.90% ad valorem ; 
• Next 6 months -14.50% ad valorem . 
As the imports from developing nations, as listed in Notification No. 19/2016 -Customs(NT) dated 
5 February  2016 of Ministry of Finance, Government of India, except China PR, Thailand and Vietnam 
do not exceed 3% individually and 9 % collectively, the import of product under consideration 
originating from developing nations except China PR, Thailand and Vietnam will not attract safeguard 
duty in terms of proviso to Section 8 B (1) of the Customs Tariff Act, 1975.  
Details of the findings of the Director General of Trade Remedies can be accessed from the DGTR 
website at http://www.dgtr.gov.in/sites/default/files/Solar -Final_Finding -English_0.pdf . and the 
corrigendum to this finding at : 
http://www.dgtr.gov.in/sites/default/files/Corrigendum%C2%A0Review.pdf . 
 
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