August 14 (Renewables Now) - India has temporarily cancelled the imposition of the recently adopted 25% safeguard duty on solar cell and module imports in line with a stay order by the Orissa High Court.
The safeguard duty was imposed at the end of last month and targeted imports of photovoltaic (PV) products from China and Malaysia. Other developing nations are exempt from the duty.
The Ministry of Finance on Monday issued a notice to the country’s customs authorities for a temporary halt on the tariffs until a decision is issued on the petitions challenging the levies. The court’s previously issued stay order runs until August 20.
“In compliance with the interim directions issued by the High Court of Orissa, it has been decided not to insist on payment of safeguard duty, for the time being,” the Ministry of Finance wrote in a letter, as cited by local media. The ministry noted that imported solar cells and modules will be assessed provisionally on furnishing a simple letter of undertaking or bond.
The 25% duty will run for one year and then reduce to 20% for a six-month period, falling to 15% in the final six-month period ending in July 2020.