Import Duty on Solar Panels from China: 2026 Rates & BCD Guide | BEFACH International
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Import Duty on Solar Panels from China: 2025 Rates & BCD Explained
May 10, 2026
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Import Duty on Solar Panels from China: 2025 Rates & BCD Explained
Import Duty on Solar Panels from China: Complete Regulatory Guide for Indian Importers
Import Duty on Solar Panels from China: Complete Regulatory Guide for Indian Importers
Understanding the import duty on solar panels from China is essential for renewable energy developers, EPC contractors, and trading firms navigating India's customs regulations. With evolving trade policies and frequent notification updates, accurate knowledge of applicable duties prevents compliance risks and cost overruns. This regulatory update breaks down the current duty structure, classification requirements, and documentation protocols for importing photovoltaic equipment from Chinese manufacturers.
Current Import Duty on Solar Panels from China
The import duty on solar panels from China primarily consists of Basic Customs Duty (BCD), Integrated Goods and Services Tax (IGST), and potential anti-dumping duties. Currently, solar cells imported from China attract a 25% Basic Customs Duty, while solar modules attract 40% Basic Customs Duty under the Finance Act provisions. This rate applies to HS codes 8541.40.11 (solar cells) and 8541.40.12 (solar modules/photovoltaic assemblies).
Beyond the base customs duty, importers must account for Social Welfare Surcharge (SWS) calculated at 10% of the BCD amount. The Integrated GST is levied at 5% on both solar cells and solar modules. Accurate classification determines the final landed cost, making HS code verification critical before shipment.
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Proper documentation ensures smooth clearance when paying import duty on solar panels from China. Key requirements include:
Bill of Entry with accurate HS code declaration
Certificate of Origin (preferably with preferential tariff benefits if applicable under trade agreements)
BIS Certification compliance for solar photovoltaic modules (as per MNRE quality control orders)
IEC Certificate (Import Export Code) mandatory for all commercial importers
Misclassification can trigger customs scrutiny or penalty proceedings. Solar cells (8541.40.11) and modules (8541.40.12) face different duty implications, with assembled panels typically attracting higher valuation scrutiny than unassembled cells.
Anti-Dumping Duties and Safeguard Measures
Beyond standard import duty on solar panels from China, the Directorate General of Trade Remedies (DGTR) has imposed anti-dumping duties on specific Chinese solar products to protect domestic manufacturers. These duties vary by exporter and product type, calculated as the difference between the normal value and export price.
Recent sunset reviews have extended these measures, requiring importers to verify current AD duty rates through DGTR notifications before finalizing purchase orders. The duty liability applies retrospectively in certain cases, creating financial exposure for importers unaware of ongoing investigations.
Compliance Checklist for Importers
When calculating import duty on solar panels from China, ensure compliance with:
Advance Authorization schemes – Check if duty exemption benefits apply under EPCG or Advance Authorization for export obligations
BIS marking requirements – All solar PV modules must bear the BIS registration mark (CRS certification)
ALMM compliance – Verify if products feature on the Approved List of Models and Manufacturers (ALMM) as mandated for government projects
Transfer Pricing documentation – Maintain arm's length price records to defend valuation during customs assessments
Frequently Asked Questions
What is the current import duty on solar panels from China?
The Basic Customs Duty stands at 25% for solar cells and 40% for solar modules, plus applicable IGST at 5% and Social Welfare Surcharge at 10% of BCD. Anti-dumping duties may apply additionally depending on the specific manufacturer and product category.
Are there any exemptions for solar panel imports?
Duty exemptions are available under specific schemes like Advance Authorization or EPCG, provided the importer fulfills export obligations or project commissioning requirements as per Foreign Trade Policy guidelines.
How do I calculate the total landed cost including import duty on solar panels from China?
Total cost = CIF Value + (BCD on CIF: 25% for cells/40% for modules) + (10% SWS on BCD) + (5% IGST on CIF+BCD+SWS) + Anti-dumping duty (if applicable) + Clearing charges.
What documents are required for customs clearance?
Essential documents include Bill of Entry, Commercial Invoice, Packing List, Bill of Lading, Certificate of Origin, BIS certificate, and IEC copy. Specific projects may require ALMM verification letters.
Where can I verify the latest duty rates and notifications?
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