Extension of Countervailing Duty on Malaysian Solar Glass: Detailed Analysis of Notification No. 02/2026-Customs (CVD)
The Central Government has issued Notification No. 02/2026-Customs (CVD) dated 2 June 2026, formally extending the levy of countervailing duty (CVD) on imports of Textured Toughened (Tempered) Coated and Uncoated Glass originating in or exported from Malaysia. This product is widely used as solar glass in photovoltaic and related applications.
This move follows the final findings of the Designated Authority under the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, which concluded that removal of this duty would likely lead to a continuation or recurrence of subsidization and consequent injury to the domestic industry.
Legal Framework and Background
Statutory Basis for the Duty
The notification has been issued by the Ministry of Finance (Department of Revenue) under the authority of:
section 9(1)andsection 9(6)of the Customs Tariff Act, 1975 (51 of 1975)- Read with rules 20, 22 and 24 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995
The notification supersedes earlier Notification No. 3/2021-Customs (CVD) dated 9 March 2021, while preserving the validity of any actions already taken or omitted under that earlier notification.
Investigation and Findings of the Designated Authority
The Designated Authority, vide Notification No. 7/10/2025-DGTR dated 3 March 2026, issued its final findings in respect of “Textured Tempered Glass” (referred to as the subject goods). The inquiry covered imports:
- Falling under tariff headings 7003, 7005, 7007, 7016, 7020 and 8541 of the First Schedule to the Customs Tariff Act
- Originating in or exported from Malaysia
- Imported into India
In its final determination, the Designated Authority concluded that:
Cessation of countervailing duty on the subject goods would likely lead to:
- Continuation or recurrence of subsidization, and
- Continuation or recurrence of injury to the domestic industry producing similar goods in India.
On this basis, the Authority recommended continued imposition of countervailing duty on such imports from Malaysia.
Acting upon these findings, the Central Government has now imposed CVD afresh through Notification No. 02/2026-Customs (CVD).
Scope of Products and Tariff Classification
Description of the Subject Goods
The subject goods covered by this notification are described as:
Textured Toughened (Tempered) Coated and Uncoated Glass
This includes specialized glass commonly used in solar applications and is also referred to by various trade descriptions such as:
- solar glass
- solar glass low iron
- solar PV glass
- high transmission photovoltaic glass
- tempered low iron patterned solar glass
- heat strengthened glass
Important note on technical characteristics
The notification clarifies that the product covered includes Textured Toughened (Tempered) Glass:
- With a minimum of 90.5% transmission
- Of thickness not exceeding 4.2 mm (including tolerance of 0.2 mm)
- Where at least one dimension exceeds 1500 mm
- Whether coated or uncoated
Tariff Headings Covered
The goods are stated to fall under the following headings/sub-headings of the First Schedule to the Customs Tariff Act:
700370057007701670208541