Trade Protection Measure
Ministry of Finance Extends Countervailing Duty on Malaysian Solar Glass Imports for Five Years; Borosil Renewable Welcomes Move
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Borosil Renewables announced that the Ministry of Finance has continued the imposition of definitive Countervailing Duty (CVD) on imports of textured tempered solar glass from Malaysia for a period of five years. The measure aims to address subsidized imports and support domestic solar glass manufacturing capacity expansion in India.
PRICE-SENSITIVE TRIGGER
Event: Continuation of Countervailing Duty (CVD) on solar glass imports from Malaysia.
Type: Government Policy / Trade Protection Measure
Impact: Positive
Immediate Effect: The continuation of CVD is expected to improve the competitive position of domestic solar glass manufacturers by reducing the pricing advantage of subsidized imported products.
Key Metrics:
- Duty Rate (Xinyi Solar Malaysia): 9.71% of CIF value
- Duty Rate (SBH Kibing Solar New Materials Malaysia): 9.71% of CIF value
- Duty Rate (Other Producers): 10.14% of CIF value
- Duration of Duty: 5 Years
- Effective Notification: No. 02/2026-Customs (CVD) dated June 2, 2026
Highlight:
- Key Highlight: Countervailing Duty extended for five years on Malaysian solar glass imports.
What Happened ?
The Ministry of Finance (Department of Revenue) issued Notification No. 02/2026-Customs (CVD) imposing continued countervailing duties on imports of textured tempered solar glass originating in or exported from Malaysia.
The notification follows findings that the cessation of duty could lead to continuation or recurrence of subsidization and injury to the domestic industry. Borosil Renewables welcomed the decision, stating that the measure will support local manufacturers and encourage further investment in domestic solar glass production.
Key Details
Countervailing Duty Notification:
- Duty applies to textured tempered coated and uncoated solar glass imported from Malaysia.
- Duty rates vary based on producer classification.
- Xinyi Solar (Malaysia) and SBH Kibing Solar New Materials (M) SDN. BHD. will attract a duty of 9.71% of CIF value.
- Imports from all other Malaysian producers will attract a duty of 10.14% of CIF value.
- Imports originating from other countries but exported through Malaysia will also attract a duty of 10.14%.
- Duty will remain effective for five years from the date of publication in the Official Gazette.
- The notification replaces the earlier countervailing duty notification issued in March 2021.
- Borosil believes the measure addresses the impact of subsidized imports on the domestic solar glass industry.
Note:
- The continuation of CVD creates a more balanced competitive environment for Indian solar glass manufacturers and may support future capacity additions in the domestic renewable energy supply chain.
Risk Analysis
Summary:
- While the duty extension is supportive for domestic producers, industry performance will still depend on solar sector demand, execution of expansion projects, raw material costs, and global pricing trends.
Key Risks:
- Imported solar glass remains a competing supply source despite the duty.
- Changes in international trade policies could affect future protection measures.
- Domestic demand growth remains linked to India’s solar installation pipeline.
- Any significant oversupply in global solar glass markets may continue to influence pricing.
Worst Case Scenario:
- If domestic demand weakens or global solar glass oversupply intensifies, the benefit from trade protection may not fully translate into improved profitability or capacity utilization.
Risk Level: Low
Company Commentary
- Borosil Renewables welcomed the continuation of the Countervailing Duty.
- The company believes the measure addresses damage caused by dumped and subsidized imports.
- Management expects the duty to protect domestic manufacturers.
- The company believes the measure will encourage investments in local solar glass production capacity.
- Borosil expects the decision to support long-term growth of India’s solar glass industry.
Official Exchange Filing: Borosil Renewables Limited