India Extends Countervailing Duty on Malaysian Solar Glass Imports for Five Years

Key Takeaways

The Ministry of Finance has formally extended the Countervailing Duty (CVD) on textured tempered solar glass originating in or exported from Malaysia. This definitive order follows a sunset review conducted by the Directorate General of Trade Remedies (DGTR), which concluded that the cessation of duties would likely result in the recurrence of subsidization and material injury to the domestic industry.

• Applicable Rates: A duty of 9.71% is assigned to specific cooperating producers, while a residual rate of 10.14% applies to all other exporters.
• Duration: The extension is set for a five-year period, remaining in force through June 2031 unless revoked or amended earlier.
• Effective Date: The order was established via Notification No. 02/2026-Customs (CVD) on June 2, 2026.
• Primary Beneficiary: The notification serves as a primary catalyst for price discovery for domestic manufacturers, most notably Borosil Renewables, the nation’s sole large-scale producer of low-iron textured solar glass.

The CVD Details: Rates, Producers, and Technical Scope

The Department of Revenue notification follows the DGTR’s finding that Malaysian exporters benefit from countervailable subsidy programs, including investment tax allowances, sales tax exemptions, and subsidized natural gas. This final order resolves a period of regulatory uncertainty following a three-month temporary extension issued in December 2025.

Producer-Specific Duties The following table details the duty amounts as a percentage of the CIF (Cost, Insurance, and Freight) value:

Subject Goods and Technical Specifications The duty applies to “Textured Toughened (Tempered) Coated and Uncoated Glass.” The technical scope is strictly defined by the following parameters:

• Transmission: Minimum of 90.5%.
• Thickness: Not exceeding 4.2 mm (including a tolerance of 0.2 mm).
• Dimensions: At least one dimension must exceed 1500 mm.
• HSN Classifications: 7003, 7005, 7007, 7016, 7020, and 8541 (Note: These codes are indicative only and not binding on the product scope).

Valuation and Compliance Nuances Duties are calculated based on the “Assessable Value” (CIF value). For trade compliance, importers must account for Rule 10 additions, including commissions, royalties, and packing costs, which must be added to the transaction value to avoid Section 28 penalties. In instances where insurance is not ascertainable, a notional insurance of 1.125% of the FOB value is applied. To secure company-specific rates (9.71%), a valid commercial invoice containing a signed manufacturer declaration of origin is mandatory.

DGTR Findings and Market Justification

The DGTR’s recommendation for the five-year extension was predicated on a shift in global supply chains and the identified vulnerability of the Indian domestic industry.

• Injury and Pricing Pressure: The investigation found that Malaysian imports were undercutting domestic prices by 30–40%, resulting in cash losses and negative returns on investment for Indian producers.
• Strategic Import Surge: The authority identified a massive surge in Malaysian imports, which jumped from 18,916 MT in 2024 to 164,380 MT in the first quarter of 2025. This surge is directly linked to the diversion of shipments following the December 2024 provisional anti-dumping duties (ADD) imposed on China and Vietnam.
• Impact on Downstream Solar Modules: Addressing module manufacturer concerns, the DGTR estimated that solar glass represents approximately 9.36% of total module costs. The ~10% CVD is projected to increase overall module prices by less than 1%, a margin deemed insignificant compared to broader solar value chain fluctuations.

Impact on Domestic Manufacturing: Borosil Renewables

As the primary domestic manufacturer, Borosil Renewables has seen the removal of a significant “risk overhang” regarding its margin trajectory.

Market Position and Financial Performance The June 2 notification removed uncertainty for investors, acting as a catalyst for price discovery. On June 3, 2026, Borosil Renewables’ share price reached an intraday high of ₹549.90, a gain of nearly 10% on the BSE. While its domestic Indian capacity stands at 1,000 TPD, the acquisition of Interfloat Corporation has brought the company’s combined global capacity to 1,350 TPD.

Capacity Expansion Trajectory The company is moving forward with a capital expenditure plan that was previously on hold due to the influx of dumped imports:

1. Current Domestic Capacity: 1,000 TPD (~6.5 GW annual equivalent).
2. Restarted Expansion: An investment of ₹950 crore to add two new furnaces is now active, targeting 1,600 TPD by December 2026.
3. Long-term Horizon: A projected total capacity of 1,950 TPD (~12.5 GW per year).

Policy Alignment This extension provides a “comprehensive protection” shield when combined with the existing ADD on China and Vietnam. It aligns with the ‘Atmanirbhar Bharat’ initiative and the 500 GW renewable target for 2030. Furthermore, Budget 2026 supports this ecosystem through Basic Customs Duty (BCD) exemptions on sodium antimonate, a critical raw material, thereby reducing input costs for domestic glass production.