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India Photovoltaic Tax Intention Repeatedly Changed Face Has Little Impact On Chinese Enterprises
- Jul 20, 2018 -

While China is the largest source of components in India, India is also China's largest export market. In 2017, the total value of the components exported to India was 9.46GW, accounting for 24.96% of the total export volume.


The investigation of the India photovoltaic sanctions has revive.


In the morning of July 17th, the Reuters reported that in a report submitted to the government in July 16th, the India trade department suggested a 25% tariff on solar cells and modules imported from China and Malaysia for a year to resist the threat it poses to the domestic solar equipment industry in India.


At the same time, reporters found that the media issued a "India photovoltaic protection measures final case" information, and attached a document screenshot.


The document shows that "India PV protection measures are finalize, and the General Administration of trade relief proposed a tax of two years of safeguards on imported batteries and components by 25% in the first year, 20% in the first half of the second half of the following year and 15% in the second half of the second half." Since the developing countries outside China and Malaysia do not export more than 3% of the total import of India, the total export of India does not exceed 9% of the total import of India, which can be exempt from the safeguards tax.


However, as of the end of the report, the reporter has not been in the India photovoltaic security measures investigation subject - the official website of the General Administration of India security measures (DGS) on the official website to inquire the relevant documents. As for the ongoing investigation, the document only shows the preliminary findings of this January. The proposed tariff is much lower than the 70% recommended by DGS in January this year.


Repeated face


The above documents show that safeguards will be implemented after the Standing Board agrees and the Ministry of Finance issued the tax order. That is to say, the measure is still not finalized.


The safeguards investigation started at the end of 2017. Subsequently, China's mechanical and electrical chamber of commerce immediately convened the litigation Coordination Committee and organized 56 enterprises to carry out non injury defenses. But in June 2017, India finance minister Hasmukh Adhia said in a special GST Twitter account that solar components would be expropriated by 5% of the commodity and service tax (GST) and the new tax rate began in July 1, 2017.


In January 5th, the India security measures Administration (DGS) announced a preliminary survey of the safeguards and suggested that the government of India impose a 70% defense on the entry of photovoltaic products into India, whether packaged into components, including crystalline silicon batteries and components, membrane batteries and components before the final results are determined. The protective tariff is a temporary safeguard measure for 200 days.


Two months later, India, once again "face", in March 23rd, the India Commercial Ministry issued a announcement, decided to terminate the antidumping investigation of PV products in China, China, Taiwan and Malaysia.


This caused the dissatisfaction of the India solar manufacturers' Association (ISMA), who wrote to the Ministry of Commerce in favour of DGS's proposal to impose a 70% tariff on imported solar photovoltaic cells and components.


But the proposal did not respond. According to the India economic times in early June, the India government had decided not to impose a temporary security tax on solar cells imported from China and Malaysia and to veto a previous 70% tariff, "India's renewable energy minister AnandKumar confirmed to the media that Shi Hangbao is not at the moment. Protect customs duties. According to the India Economic Times reported on June, the India provincial Ministry of finance's Standing Committee on safeguards has just decided that there is no need to impose such tariffs.


But the industry was puzzled that the India Trade Relief Administration (DGTR), a subsidiary of the Ministry of Commerce of India, held an open hearing in June 26th to discuss 70% of the tariffs on imported solar equipment. At the meeting, ISMA once again asked for a 95% tax on imported solar cells and modules to protect domestic manufacturers from cheap imports.


The positions of different interest groups in India are obviously quite different. In fact, India has long been entangled in tariffs on photovoltaic industry.


As early as September 15, 2012, following the double and reverse investigation of the photovoltaic industry in Europe and the United States, India also filed a double anti investigation application.


In 2014, the Ministry of finance of India decided not to carry out the final tax decision on anti dumping of imported photovoltaic products from the mainland of China, Taiwan, the United States and Malaysia of India, which ended in a non tax settlement after 21 months. However, India continues to claim that it will double reverse imports of photovoltaic products.


In recent years, India has become the third largest photovoltaic market in China and the United States. In the 2017 fiscal year, India's new photovoltaic loader is about 9GW. In fiscal year 2018, the photovoltaic construction plan will be as high as 11GW, and the India government plans to achieve the 100GW PV installed target in 2022. However, the PV market in India has high dependence on imported PV modules, and nearly 85% of the PV products come from imports.


India's market is the most competitive and attractive market in recent years, and India has also been hoping to build its own capacity, but so far there has not been a special promotion, but now many Chinese enterprises have gone to India to build factories in India.


Limited impact


While China is the largest source of components in India, India is also China's largest export market. In 2017, the total value of the components exported to India was 9.46GW, accounting for 24.96% of the total export volume.

Although India is uncertain, it will still have some impact on Chinese PV enterprises. However, more enterprises have been prepared before that. It is a common choice to build factories overseas. Xie Xin integration, Trina Solar, crystal Australia and other related companies in India to build a production base.


Trina Solar chairman Gao Jifan said in May this year that India has become the core target market of Trina Solar. The latest national solar industry map report published by Bridge to India of India's new energy industry, the world's leading solar overall solution provider, is the largest component supplier in the 2016 India market with 25.7% of its market share.


Over the past few years, Longji Lok has supplied a number of single chip modules for photovoltaic power plants of 100 MW level in India. Customs export data show that in January 2018 -5 months, Longji loye components India shipped the first batch.


In view of the possible impact of Taxation in India, He Qiang, director of domestic marketing at LongKey leaf, told reporters that in fact, the impact on Longji was not great.


"Because a local factory is equal to a small amount of actual exports, the tariff has little effect. India market occupies Longji's overseas market layout is also relatively small. He Qiang said.


Red Wei said, "although domestic and foreign policy factors will make enterprises more stressed, it may not be a bad thing. The market environment has increased pressure, but it is a good thing for a competitive enterprise or an early prepared enterprise. It is naturally not a good thing for enterprises to go abroad and expand to India. The reason why China's PV industry needs to be integrated is that we oversupply, and there are too many enterprises without competitiveness.


Therefore, India's levy on Tariffs did not cause much repercussions of domestic enterprises. Compared with the previous US and European Countermoves in 2012, it was totally out of order.


"In 2011, our PV exports accounted for 95% of the total output, but after the" double reverse ", the proportion of exports fell to 30%-40%. But I think the most ideal state is that the overall export level should be 50%, and the current proportion is unreasonable, which is not conducive to coping with risks. Hong Wei said.


It is worth mentioning that the European Commission will decide whether to revoke or extend these measures as the EU policy is about to expire on China's double counter policy as September 2018 approaches.