Centre imposes 25% safeguard duty on import of solar cells

Centre imposes 25% safeguard duty on import of solar cells


  1. Recently, the Centre has issued a notification to impose a safeguard duty of 25% on import of solar cells.

 Important facts:

2. The decision by the government follows a long deliberation by the Director General of Trade Remedies, which recommended the safeguard duty structure.

3. The duty will be impose on imports of solar cells from China and Malaysia between July 30, 2018 and July 29, 2019.

4. The duty reduces to 20% for six months from July 30, 2019, and further to 15% in the subsequent half year.

5. The subsequent 20% duty on “solar cells whether or not assembled in modules or panels” will apply on imports from China and Malaysia during the period July 30, 2019, to January 29, 2020.

6. The 15% duty will kick in during the period from January 30, 2020, to July 29, 2020.

7. Reasons to impose duty on solar cells:

  • The move aimed at helping the domestic solar cell manufacturing sector.
  • The move is likely to increase the bid tariffs to 2.9-3.1 per unit for the upcoming bids.

8. However, the decision could affect existing projects dependent on cheap imports.

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