New Delhi: Following a request from the Indian Solar Manufacturers Association, the commerce ministry has ended an anti-dumping probe into imports of solar cells from China, Thailand, and Vietnam (ISMA).

Following a complaint from the association, the ministry’s investigation arm, the Directorate General of Trade Remedies (DGTR), opened an investigation into the suspected dumping of “solar cells, whether or not combined into modules or panels,” exported from the three countries.

“In view of the request made by the domestic industry, ISMA,…the authority hereby terminates the investigation initiated on May 15, 2021… against the imports of solar cells whether or not assembled into modules or panels exported by these countries,” the DGTR said in a notification.

The Anti-dumping Rules of 1995 allow for the closure of an inquiry in certain circumstances, including the withdrawal of an application by the domestic industry that was the subject of the investigation. According to the notification, the candidate withdrew their application by email on July 14, 2022.

With effect from April 1 of this year, the government imposed customs taxes of 25% on solar cells and 40% on solar modules following the launch of the investigation.

According to the ISMA’s submission to the directorate, the imposed tariffs cover the entire range of the product under examination and have significantly, though not entirely, reduced the price pressure that the local industry was experiencing as a result of the dumping.

Although the Department of Revenue makes the final decision to impose the duty, the DGTR makes the recommendation. Dumping, as used in international trade, is the practise of a nation or business exporting goods below their home market price.

The margins and profitability of manufacturing companies are impacted by dumping on the price of that product in the nation of import.

Only after a comprehensive inquiry by a quasi-judicial organisation, such as the DGTR in India, is the duty imposed. It aims to guarantee ethical business practises and level the playing field for domestic producers.