The Directorate General of Trade Remedies (DGTR) has recommended an anti-dumping duty of up to $577 per tonne for five years on imports of aluminium frames for solar panels from China. This recommendation follows a thorough investigation by the DGTR, the investigative arm of the Ministry of Commerce and Industry, which concluded that these aluminium frames were being exported to India at prices significantly below their normal value, resulting in substantial dumping margins.

According to the DGTR?s final findings, the dumping has materially hindered the establishment of the domestic aluminium frame industry in India. The investigation revealed that, despite the commencement of commercial production in India, the volume of imports continued to rise. The DGTR stated, ?The imports are priced below the target prices of the domestic industry and have prevented the domestic industry from achieving a reasonable price.?

In 2023, India initiated the probe in response to a complaint filed by Vishakha Metals, which sought an investigation into the imports of anodized aluminium frames for solar panels and modules from China. The final decision regarding the imposition of the recommended duty now rests with the finance ministry.

The DGTR?s document further highlighted the underutilization of the domestic industry?s capacity, which failed to meet even the projected utilization rates for the 2021-22 period in 2022-23. ?Despite underutilized capacities, the domestic industry has not been able to sell the subject goods on account of unfairly priced imports,? it noted, adding that the industry?s performance in terms of profits and returns on investment is severely lacking.

The investigation underscored that the dumped imports were adversely affecting the pricing of the domestic industry. The DGTR concluded that the imposition of the anti-dumping duty would not negatively impact consumers or the downstream industry, emphasizing that it is essential to offset the dumping and the resulting injury to the domestic market.

Aluminium frames are crucial for the assembly of solar panels, providing protection to internal components and attachment points for mounting. Most solar photovoltaic (PV) panels are equipped with aluminium frames, which enhance component support and extend battery service life through their malleability.

The recommended anti-dumping duty aims to protect India's domestic aluminium frame industry and ensure fair competition in the solar sector.