Indian Gov’t Puts Safeguard Duty on Hold

The safeguard duty which was brought into effect on July 30, 2018 in order to protect interest of domestic solar manufacturers was awaiting clearance from Orissa High Court after solar player ACME Group filed a writ petition against the safeguard duty on imports.

In a relief to the domestic solar developers, Finance Ministry has issued notification staying the safeguard duty on solar imports from China and Malaysia which was rolled out from July 30, 2018.

In a letter to all chief commissioners of customs, the ministry said, “In compliance with the interim directions issued by the high court of Odisha, it has been decided not to insist on payment of safeguard duty for the time being.”

The safeguard duty which was brought into effect on July 30, 2018 in order to protect interest of domestic solar manufacturers was awaiting clearance from Orissa High Court after solar player ACME Group filed a writ petition against the safeguard duty on imports.

The notification also read, “Till further direction from the Board, the said goods, namely, solar cells whether or not assembled in modules or panels would, in respect of said safeguard duty, be assessed provisionally on furnishing of simple letter of undertaking by the concerned person.”

Supporting the petition for time being, Orissa High Court has ordered to put the safeguard duty on imports from China and Malaysia on hold till the time it furnishes further investigations regarding the credibility of imposition, as per notification.

Government had planned to impose the safeguard duty on solar imports in a phased manner i.e. safeguard duty of 25 percent for the period from July 30, 2018 to July 29, 2019 followed by reduced 20 percent duty from July 30, 2019 to January 29, 2020 and thereafter 15 percent duty on imports for the next six months.

The safeguard duty on solar imports has in its spectrum the health of the Indian solar market. While it has in store benefits for the domestic solar manufacturers, it is not expected to do same good to the solar developers, majority of which imports solar modules from China and Malaysia.

Source: Hindu