G/SG/N/8/IND/31/Suppl.1  
G/SG/N/10/IND/22  
G/SG/N/11/IND/17/Suppl.1  
 
2 August 2018  
(18-4931) Page: 1/8 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT  
ON SAFEGUARDS ON FIN DING A SERIOUS INJUR Y OR THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION OF A PR OPOSAL TO IMPOSE A MEASURE  
NOTI FICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
 (Solar Cells whether or not assembled in modules or panels)  
INDIA 
The following communication, dated 1 August  2018, is being ci rculated at the request of the 
Delegation of India.  
 
_______________  
 
In continuation to document No. G/SG/N/6/IND/44 dated 28 December 2017 and 
G/SG/N/7/IND/11 dated 11 January 2018.  
1  INFORMATION ON WHETH ER THERE IS AN ABSOL UTE INCREASE IN IMPO RTS 
The Product Under Consideration i.e.,  'Solar Cells  whether or not assembled in modules or panels ' 
(hereinafter referred to as 'PUC') is imported into India from a number of countries during the 
Period of Investigation (POI) i.e., 2014 -15 to 2017 -18. The imports of 'PUC' is given in the table 
below:  
Financial Year  Total Imports (MW)  Indexed  
2014-15 1275 100 
2015-16 4186 328 
2016-17 6375 500 
2017-18 (up  to Sept. 2017)  4917 -- 
2017-18 (Annualized)  9833 771 
2017-18 Actual  9790 768 
 
From the table above, it is evident that there was  a surge in imports in absolute terms i.e. imports 
increased from 1275 MW in  2014-15 to 9790 MW  in 2017-18 (Actual).  
2  SHARE OF IMPORTS REL ATIVE TO PRODUCTION  
It is noticed that imports of PUC in India during the POI have also increased in relation to the 
production of the Domestic Industry (DI), which would be evident from the table given below:  G/SG/N/8/IND/31/Suppl.1 • G/SG/N/10/IND/22 • G/SG/N/11/IND/17/Suppl.1  
 
- 2 - 
 
  Financial Year  Total Imports  
(MW)  All India Production 
(MW)  Imports as a 
percentage of total 
production  
2014-15 1,275  170 750 
2015-16 4,186  206 2036 
2016-17 6,375  587 1086 
2017-18 (Up  to Sept. 2017)  4,917  421 1169 
2017-18 (Annualized)  9,833  842 1169*  
* Based on the actual imports during the period 2017 -18, the import as a  % of Indian production comes to 1162 . 
From the above table, it is evident that there is a sudden, sharp and significant surge in imports 
during the most recent Period of Investigation, both in absolute terms as well as in relation to total 
domestic production.  
3  SERIOUS INJURY OR TH REAT THEREOF  CAUSED BY INCREASED IMPORTS  
a. Serious Injury  
An evaluation of the overall position of the Domestic Industry (DI), in the light of almost all the 
relevant factors, having a bearing on the situation of the DI, shows a significant overall 
impairment. Evidence of serious injury has been analysed & explained in subsequent  paragraphs. 
The Director General of Trade Remedies (DGTR) has thus concluded that DI has suffered serious 
injury and increased imports of the PUC threaten to cause serious injury to the DI.  
b. Threat of Serious injury  
As stated in the table indicated above, imports of the PUC in India during the POI have not only 
increased in absolute terms but also increased in relation to production of the DI.  
Increase in imports in absolute terms shows  a clear surge in imports and has a rising trend, which 
is significant e nough to constitute "increased imports" within the meaning of Section 8B of the 
Customs Tariff Act, 1975.  
4  EVIDENCE OF SERIOUS INJURY  
The increased imports of ‘PUC’ into India have caused serious injury to the domestic producers as 
reflected by the followin g parameters:  
a. Market Share  
Financial Year  Imports (MW)  Domestic 
sales by 
the DI  
(MW)  Domestic sales by 
other Indian 
producers (MW)  Total 
domestic 
sales  (MW)  Domestic 
Demand  
(MW)  
2014-15 1275 (90%)  115 (8%)  28 (2%)  143 (10%)  1419 (100%)  
2015-16 4186 (96%)  178 (4%)  15 (0.3%)  193 (4%)  4381 (100%)  
2016-17 6375 (92%)  299 (4%)  244 (4%)  543 (8%)  6918 (100%)  
2017-18 
(Up to Sept. 2017)  4917 (93%)  157 (3%)  235 (4%)  392 (7%)  5309 (100%)  
2017-18 
(Annualized)  9833 (93%)  314 (3%)  471 (4%)  785 (7%)  10618 
(100%)  
It can be seen form the table above that the imports had a market share of 90% in 2014 -15 which 
increased to 93% during 2017 -18(A) whereas the market share of domestic industry decreased 
from 10% to 7%.  
b. Production  
Financial Year  Total Imports  (MW)  Prod uction of DI  (MW)  
2014-15 1275 141 
2015-16 4186 191 
2016-17 6375 314 
2017-18 (Up  to Sept. 2017)  4917 159 
2017-18 (Annualized)  9833 318 G/SG/N/8/IND/31/Suppl.1 • G/SG/N/10/IND/22 • G/SG/N/11/IND/17/Suppl.1  
 
- 3 - 
 
  From the above table, it is evident that the production of the DI increased by 126%, however, the 
imports have increased by 671% during the same period.  
c. Change in level of domestic sales  
The sales of the domestic producers increased from 115 MW to 314 MW i.e. by 199 MW. However, 
the imports increased by 8,558 MW. Also, as the domestic demand increased from 1,419 MW  
in 2014-15 to 10,618 MW in 2017 -18 (Annualized), it is clear that the increased imports of the 
PUC have substituted for the domestic production in meeting the domestic demand for the PUC.  
d. Capacity Utilization  
The capacity utilization increased from 48%  in 2014-15 to 85% in 2017 -18 (A). When compared 
with the growth in demand, which increased to 10,618 MW in 2017 -18, the DI’s total capacity 
should have got utilised. The capacity utilisation remained below 100% even in such an enhanced 
demand.  
Financial Year  Installed Capacity  
(MW)  Production of DI  
(MW)  Capacity Utilisation  
(%) 
2014-15 292 141 48 
2015-16 373 191 51 
2016-17 373 314 84 
2017-18 (up  to Sept. 2017)  185 159 86 
2017-18 (Annualized)  373 318 85 
e. Profit & Loss  
The profitability per watt was severely impacted during April to September 2017 as compared to 
the previous year and even the base year of injury period, as evident from the table below:  
Financial Year  Loss in Rs. Watt (Indexed)  
2014-15 -100 
2015-16 -143 
2016-17 -22 
2017-18 (up  to Sept. 2017)  -107 
f. Employment & Productivity  
The employment generated by the DI has slightly declined in 2017 -18 whereas the productivity 
per employee showed increasing trend similar to the production trend which is also rising. This is 
expected in a scenario where there is a huge demand supply gap.  
Financial Year  Production of DI 
(MW)  No. of Employees 
(Indexed)  Productivity per employee 
(MW)  
2014-15 141 100 0.290  
2015-16 191 108 0.365  
2016-17 314 106 0.607  
2017-18 (up  to Sept. 2017)  159 99 0.329  
2017-18 (Annualized)  318 99 0.660  
 
g. Inventories  
The inventory carried out by the DI increased by more than 2 times during the POI, as indicated in 
the table below:  
 
Financial Year  Closing Inventory (Indexed)  
2014-15 100 
2015-16 114 
2016-17 243 
2017-18 (up to Sept. 2017)  251 
 G/SG/N/8/IND/31/Suppl.1 • G/SG/N/10/IND/22 • G/SG/N/11/IND/17/Suppl.1  
 
- 4 - 
 
  5  UNFORESEEN DEVELOPME NTS 
China has doubled the production capacity of solar cells from 11.12 GW in 2012 to 27.78 GW 
in 2016. Similarly, the production capacity of solar modules also increased from 12.46 GW in 2012 
to 35.47 GW in 201 6. As a result of the trade remedy measures by the two major markets namely 
the United States and the European Union on the PUC, there is a clear change in pattern of exports 
by China to other markets including the Indian market. The impact of such trade r emedy measures 
were not visible in India because of the domestic content requirement (DCR), which was 
challenged by the United States and held to be inconsistent with the GATT and TRIMs Agreement. 
India also committed to Paris Agreement on climate change f or reduction of CO 2 emissions 
by 33-35% from 2005 levels. In line with this commitment, India established a target achieving 
100 GW of Solar power generation by the year 2022. The confluence of simultaneous imposition of 
trade remedy measures and the commi tment undertaken by India under COP 21 
(Paris  Agreement) constitutes unforeseen developments.  
India's import tariff on the PUC is ‘Free’. This 'Free' tariff was introduced pursuant to the 
obligations incurred by India under GATT 1994, including the tariff  concessions thereunder read 
with the Ministerial Declaration on Trade in Information Technology Products dated 13  December, 
1996 (hereinafter also referred to as the "ITA -1"). The PUC  is covered under Attachment A, 
Section  1 of the ITA -1. The ITA -1 mandat ed elimination of Customs duties and other duties / 
charges of any kind within the meaning of Article II:1(b) of GATT 1994 on the products listed 
therein. The ITA -1 restricts India’s freedom of action with respect to PUC and prevents it from 
raising custom s duties. It is clear that the developments were unforeseen at the time the 
concession granted by India under ITA -1 on 13 December, 1996.  
6  ADJUSTMENT PLAN  
The DI has submitted pragmatic adjustment plan. Since relief under the safeguard measure is only 
for a limited period of time as an emergency measure, industry’s adjustment efforts to withstand 
the surge in imports needs to be seen primarily during this ti me span.  
 
7  PRODUCT INVOLVED  
The PUC is 'Solar Cells, whether or not assembled in Modules or Panels '. The product is classified 
under sub -heading 8541.40 of the Harmonized Commodity Description and Coding System, 
popularly called HSN, and sub -heading 8541.40.11 of the Indian Customs Tariff Classification.  
 
8  PRECISE DESCRIPTION OF THE PROPOSED MEAS URE 
Director General of Trade Remedies (DGTR), the competent authority, has recommended to 
impose safeguard duty at the rate of 25% ad valorem for the first year, 20% ad valorem for the 
first six months of the second year and 15% ad valorem for last six months of  the second year.  
 
9  FURTHER INFORMATION  
The Final Findings were published in gazette of India on 16 July 2018 and can be  seen at 
http://www.dgtr.gov.in . 
 
10  PROPOSED DATE OF IMP OSITION OF SAFEGUARD  MEASURE  
The safeguard measure will be applicable from the date  of issue of notification in this regard by the 
Department of Revenue, Ministry of Finance, Government of India.  
 G/SG/N/8/IND/31/Suppl.1 • G/SG/N/10/IND/22 • G/SG/N/11/IND/17/Suppl.1  
 
- 5 - 
 
   
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
1  SPECIFY THE MEASURE  
Safeguard duty at the rate of 25% ad valore m for first year, 20% ad valorem for first six months 
of the second year and 15% ad valorem for last six months of the second year has been 
recommended by the Director General of Trade Remedies (DGTR), the competent authority.  
2  SPECIFY THE PRODUCT SUBJECT T O THE MEASURE  
The product under consideration (PUC) is 'Solar Cells, whether or not assembled in Modules or 
Panels '. The product is classified under sub -heading 8541.40 of the Harmonized Commodity 
Description and Coding System, popularly called HSN, and su b-heading 8541.40.11 of the Indian 
Customs Tariff Classification.  
3  SPECIFY THE DEVELOPI NG COUNTRIES TO WHIC H THE MEASURE IS NOT  APPLIED 
UNDER ARTICLE 9.1 OF  THE AGREEMENT ON SAF EGUARDS, AND THE IMP ORT SHARE OF 
THESE COUNTRIES INDI VIDUALLY AND COLLECT IVELY  
As the imports from developing countries, as listed in Notification No.19/2016 -custom (NT) dated 
5 February,  2016, except China PR and Malaysia do not exceed 3% individually and 
9% collectively, the imports of the PUC originating from developing countries  except China PR and 
Malaysia will not attract Safeguard Duty in terms of proviso to Section 8B (1) of the Customs Tariff 
Act, 1975. Customs Notification No. 19/2016 -Customs (NT) dated 5 February 201 6 is attached 
herewith .  G/SG/N/8/IND/31/Suppl.1 • G/SG/N/10/IND/22 • G/SG/N/11/IND/17/Suppl.1  
 
- 6 - 
 
   
NOTIFICATION  
NO. 19/2016 - CUSTOMS (N.T.)  
G.S.R.  .(E).- In pursuance of  clause (a) of sub -section (6) of section 8B of the Customs Tariff Act, 
1975 (51 of 1975)  and in supersession of notification of the Government of India in the Ministry of 
Finance, Department of Revenue, No. 103/98 Cus, dated the 14  December, 1998, published in the 
Gazette of India, Extraordinary vide number G.S.R. 737(E), dated the 14 December, 1998,  except 
as respects things done or omitted to be done before such supersession, the Central Government, 
hereby notifies the following countries as developing countries for the purposes of the said section, 
namely : 
1.  Afghanistan  
2.  Albania  
3.  Algeria  
4.  Angola  
5.  Armenia  
6.  Azerbaijan  
7.  Bangladesh  
8.  Belarus  
9.  Belize  
10.  Benin  
11.  Bhutan  
12.  Bolivia (Plurinational State of)  
13.  Bosnia and Herzegovina  
14.  Botswana  
15.  Brazil  
16.  Bulgaria  
17.  Burkina Faso  
18.  Burundi  
19.  Cabo Verde  
20.  Cambodia  
21.  Cameroon  
22.  Central African Republic  
23.  Chad 
24.  China  
25.  Colombia  
26.  Comoros  
27.  Congo  
28.  Costa Rica  
29.  Cote d'Ivoire  
30.  Cuba 
31.  Democratic People ’s Republic of Korea  
32.  Democratic Republic of the Congo  
33.  Djibouti  
34.  Dominica  
35.  Dominican Republic  
36.  Ecuador  
37.  Egypt  
38.  El Salvador  
39.  Eritrea  
40.  Eswatini  
41.  Ethiopia  
42.  Fiji 
43.  Gabon  
44.  Gambia  
45.  Georgia  
46.  Ghana  
47.  Grenada  
48.  Guatemala  
49.  Guinea  
50.  Guinea Bissau  
51.  Guyana  
52.  Haiti 
53.  Honduras  G/SG/N/8/IND/31/Suppl.1 • G/SG/N/10/IND/22 • G/SG/N/11/IND/17/Suppl.1  
 
- 7 - 
 
  54.  Indonesia  
55.  Iran (Islamic Republic of)  
56.  Iraq 
57.  Jamaica  
58.  Jordan  
59.  Kazakhstan  
60.  Kenya  
61.  Kiribati  
62.  Kyrgyzstan  
63.  Lao People 's Democratic Republic  
64.  Lebanon  
65.  Lesotho  
66.  Liberia  
67.  Libya 
68.  Madagascar  
69.  Malawi  
70.  Malaysia  
71.  Maldives  
72.  Mali 
73.  Marshall Islands  
74.  Mauritania  
75.  Mauritius  
76.  Mexico  
77.  Micronesia (Federal State of)  
78.  Mongolia  
79.  Montenegro  
80.  Morocco  
81.  Mozambique  
82.  Myanmar  
83.  Namibia  
84.  Nepal  
85.  Nicaragua  
86.  Niger  
87.  Nigeria  
88.  Pakistan  
89.  Palau  
90.  Palestine  
91.  Panama  
92.  Papua New Guinea  
93.  Paraguay  
94.  Peru 
95.  Philippines  
96.  Republic of Moldova  
97.  Romania  
98.  Rwanda  
99.  Saint Lucia  
100.   Saint Vincent and the Grenadines  
101.   Samoa  
102.   Sao Tome and Principe  
103.   Senegal  
104.   Serbia  
105.   Sierra Leone  
106.   Solomon Islands  
107.   Somalia  
108.   South Africa  
109.   South Sudan  
110.   Sri Lanka  
111.   Sudan  
112.   Suriname  
113.   Syrian Arab Republic  
114.   Tajikistan  
115.   Thailand  
116.   The former Yugoslav Republic of Macedonia  
117.   Timor -Leste  
118.   Togo 
119.   Tonga  G/SG/N/8/IND/31/Suppl.1 • G/SG/N/10/IND/22 • G/SG/N/11/IND/17/Suppl.1  
 
- 8 - 
 
  120.   Tunisia  
121.   Turkey  
122.   Turkmenistan  
123.   Tuvalu  
124.   Uganda  
125.   Ukraine  
126.   United Republic of Tanzania  
127.   Uzbekistan  
128.   Vanuatu  
129.   Viet Nam  
130.   Yemen  
131.   Zambia  
132.   Zimbabwe  
 
 
__________