The Ministry of Finance has extended the countervailing duty (CVD) on imports of textured tempered solar glass from Malaysia for another five years.
The decision follows a sunset review conducted by the Directorate General of Trade Remedies (DGTR), which concluded that removing the duty would likely result in the continuation or recurrence of subsidization and injury to domestic manufacturers.
The extension has been formalized through Notification No. 02/2026-Customs (CVD) issued on June 2, 2026, replacing the earlier levy imposed in March 2021. The renewed measure will remain in force until June 2031 unless revoked, amended, or superseded earlier.
Table of Contents
Duty Structure
Under the notification, imports of textured toughened (tempered) coated and uncoated glass—commonly known as solar glass—will attract the following countervailing duties based on their Cost, Insurance, and Freight (CIF) value:
- 9.71% for products manufactured by Xinyi Solar (Malaysia) Sdn. Bhd.
- 9.71% for products manufactured by SBH Kibing Solar New Materials (M) SDN. BHD
- 10.14% for imports from all other Malaysian producers and exporters.
The duty applies to solar glass classified under tariff headings 7003, 7005, 7007, 7016, 7020, and 8541. The product scope covers textured tempered glass with a minimum transmission of 90.5%, thickness not exceeding 4.2 mm, and at least one dimension exceeding 1,500 mm.
DGTR Review Finds Continued Risk of Injury
The DGTR’s investigation determined that terminating the duty would likely lead to renewed subsidized imports from Malaysia, adversely impacting Indian manufacturers. The authority concluded that the domestic industry remains vulnerable to injury from subsidized imports if trade protection measures are withdrawn.
Consequently, the government accepted the DGTR’s recommendation and continued the levy under provisions of the Customs Tariff Act and the Countervailing Duty Rules.
Strategic Importance for India’s Solar Manufacturing
Solar glass is a critical component used in photovoltaic (PV) modules and plays an essential role in India’s ambitious renewable energy expansion plans. The extension of the duty aligns with the government’s broader strategy of strengthening domestic manufacturing capabilities across the solar value chain.
Over the past few years, India has implemented a range of trade and industrial policies—including customs duties, non-tariff measures, and production-linked incentives—to encourage local manufacturing and reduce dependence on imports. The latest decision complements these efforts by ensuring continued protection for domestic solar glass producers against subsidized foreign competition.
Boosting Localisation Across the Solar Sector
The duty extension comes at a time when the government is intensifying localisation requirements in the renewable energy sector. Effective June 1, 2026, solar projects seeking eligibility under government schemes must source solar cells from approved domestic manufacturers under the Approved List of Models and Manufacturers (ALMM) List-II framework. Authorities are also examining similar domestic sourcing mandates for upstream products such as solar wafers and ingots.
Industry observers view the continuation of the CVD as a key measure supporting India’s objective of building a self-reliant solar manufacturing ecosystem while advancing its clean energy and energy security goals.
Notification Details
Notification No. 02/2026-Customs (CVD)
Date: 2nd June, 2026
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