Proposed 20% basic customs duty on solar cells to hit units in SEZs

As the safeguard duty on imported solar cells and modules from China and Malaysia ceases to exit in July, and is likely to be replaced with 20% basic customs duty (BCD), the viability of Indian solar cells and module manufacturers based out of special economic zones (SEZ) will be threatened, if they are not allowed parity with the domestic tariff area (DTA) manufacturers.

As FE reported earlier, the government is planning to replace safeguard duty introduced in July 2018 to protect domestic manufacturers with a basic customs duty which will rise to 20% in a phased manner over the next 2-3 years.