The Directorate General of Trade Remedies (DGTR) has suggested extending the anti-dumping duty on imports of Ethylene Vinyl Acetate (EVA) backsheets from China for five years. It was revealed in a recent investigation by the DGTR that EVA backsheets are still being exported to India at prices below the normal value, leading to dumping.

It has been proposed by the directorate to impose an anti-dumping duty of $590 per metric ton on EVA backsheet originating from or exported by Changzhou Sveck Photovoltaic New Material Company in China, and $897 per metric ton for all other producers.

In 2019, the government had enforced anti-dumping duties on EVA backsheet imports from China, Malaysia, Saudi Arabia, and Thailand, with the current duty period set to end in March 2024.

DGTR has observed that post the imposition of duties, several new companies have initiated production of the subject goods within the country. The capacity of India to manufacture these goods has surged by more than 400%, indicating the positive impact of the anti-dumping duties.

However, it was noted by DGTR that there are considerable unutilized capacities among Chinese exporters. The evidence submitted by the domestic industry clearly points to a "high probability of oversupply" in the EVA market in China.