The Government of Indiaโs Directorate General of Trade Remedies (DGTR) initiated an anti-dumping investigation concerning imports of textured tempered glass, often used in solar panels, from China and Vietnam. The investigation began following an application from Borosil Renewables Limited, a domestic producer, which claimed that imported glass from these countries was being sold at unfairly low prices, harming the Indian industry. The probe adheres to India’s Customs Tariff Act and Anti-Dumping Rules, which allow for duties to counteract imports sold at prices below normal value, determined through cost comparison.
The DGTR notified relevant stakeholders, including embassies, importers, and producers in the subject countries, allowing them time to submit responses. During the investigation, Indian authorities considered production costs, profit margins, and the impact on domestic industry. Borosil Renewables Limited and several known producers in China and Vietnam provided information on production, sales, and prices, enabling a comparative analysis of domestic and imported products. China was assessed as a “non-market economy,” meaning the DGTR used surrogate pricing from a similar market to assess fair value.
The investigation revealed significant price undercutting by imported glass, which had increased drastically from China and Vietnam. These imports captured a dominant market share, creating adverse conditions for Indian producers, who found it difficult to sell at competitive prices. The DGTR observed that Chinese imports, in particular, surged to more than 659,000 metric tons, comprising nearly all imports. Despite having ample capacity, domestic producers utilized only a fraction due to the competitive pressure from imports, which led to price suppression and declining profits for Indian firms.
The DGTR’s preliminary findings suggest that imported tempered glass was priced below both Indian selling prices and production costs, limiting domestic companies’ ability to raise prices or maintain profitability. Indian firmsโ capacity utilization and sales volumes were low relative to potential output, leading to increased inventory and reduced cash flow. The DGTR concluded that imports had a price-suppressing effect, deterring Indian producers from setting prices above cost and further straining their financial stability. While other potential causes of injury were considered, including demand fluctuations or technological changes, none were found to significantly impact the market, solidifying the link between dumped imports and domestic industry harm.
In response to these preliminary findings, the DGTR may recommend imposing an anti-dumping duty to protect the domestic industry by leveling the competitive field. If applied, this duty would aim to offset the price advantage of imported glass, potentially enhancing Indian producers’ market position and profitability. The DGTR will continue to evaluate evidence and submissions from all stakeholders, with conclusions and recommendations expected upon further review of the economic impact on domestic manufacturers.
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