Barrier-free Trade: Solar imports from China seen surging in FY22

Come August, import of solar modules and cells might witness a sudden surge, thanks to the opening of an eight-month barrier-free window. The bulk of the imports are likely to be from China, given the pricing power being enjoyed by exporters from the neighbouring country.

A 15% safeguard duty on solar imports from China and Malaysia — the only import barrier in the absence of any other duty, including the basic customs duty (BCD) — will cease to exist on July 31. Solar module and cell imports will attract BCD of 40% and 25%, respectively, effective FY23.