DGTR Will Continue Anti-Dumping Duty On Chinese EVA Backsheets

The Directorate General of Trade Remedies (DGTR) has recommended extending the anti-dumping duty on the import of Ethylene Vinyl Acetate (EVA) backsheets from China for an additional five years. A recent DGTR investigation revealed that EVA backsheets are still being exported to India at prices below their normal value. And this, according to DGTR, is nothing but dumping.

The proposal by DGTR suggests imposing an anti-dumping duty of $590 per metric ton on EVA backsheets from Changzhou Sveck Photovoltaic New Material Company in China and $897 per metric ton for all other producers.

In 2019, the government imposed anti-dumping duties on EVA backsheets imported from China, Malaysia, Saudi Arabia, and Thailand. The current duty period is set to expire in March 2024.

DGTR notes that since the imposition of duties, several new companies in India have started producing these goods, with the country’s capacity increasing by over 400%. This indicates a positive impact from the anti-dumping duties.

EVA sheets are a polymer-based component employed in the manufacturing of PV modules.

However, DGTR highlights significant unutilized capacities among Chinese exporters. Evidence from the domestic industry strongly suggests a “high probability of oversupply” in the EVA market in China.

Established in 1998 as the Directorate General of Anti-Dumping & Allied Duties, it was renamed in 2018 as the Directorate General of Trade Remedies (DGTR). It’s the apex national authority made responsible for administering all the trade remedial measures that include anti-dumping duties, countervailing duties and other safeguard measures.

The 2019 Action by DGTR

In February 2019, DGTR revealed in its “Final Finding Notification” that duties ranging from $537 to $1,559/metric ton would be imminent to offset the impact of imports of solar ethylene vinyl acetate (EVA) backsheets from China, Malaysia, Saudi Arabia and Thailand.

The harshest duty that amounted to $1,559/metric ton (MT) was imposed on sheets supplied by all of Saudi manufacturers except Saudi Specialized Products.

This inquiry was instigated following a petition from Mumbai-based solar manufacturer RenewSys, requesting the imposition of anti-dumping duties on solar EVA sheet imports from East Asia.