Import Duty on Solar Panels from China India 2026 | Guide | BEFACH International
regulations-compliance
Import Duty on Solar Panels from China: 2025 Rate & Calculation
April 21, 2026
befach
Share
Import Duty on Solar Panels from China: 2025 Rate & Calculation
Import Duty on Solar Panels from China to India: Complete 2026 Guide
Import Duty on Solar Panels from China to India: Complete 2026 Guide
Import Duty on Solar Panels from China to India: Regulatory Framework and Compliance Guide
The import duty on solar panels from China India trade corridor represents one of the most scrutinized tariff structures in India's renewable energy sector. As India accelerates its solar capacity expansion under the National Solar Mission while simultaneously promoting domestic manufacturing through the Production Linked Incentive (PLI) scheme, understanding the complete duty structure has become essential for importers, EPC contractors, and project developers. This comprehensive guide explains the current tariff rates, HS code classifications, and compliance requirements for navigating the import duty on solar panels from China to India in 2026.
Current Import Duty on Solar Panels from China to India
The import duty on solar panels from China to India comprises multiple layers of taxation designed to balance energy security with domestic manufacturing protection. As of 2026, importers must account for Basic Customs Duty (BCD), Integrated Goods and Services Tax (IGST), and potential anti-dumping duties depending on the specific product category and manufacturer.
Facing Any Issue While Buying
Discover how ESSENTIO revolutionizes home cleaning with AI-driven precision. Watch as it navigates, cleans.
Solar panels and modules imported from China currently attract a Basic Customs Duty of 25% ad valorem. This rate was increased from previous levels of zero or concessional rates to encourage domestic manufacturing under the Atmanirbhar Bharat initiative. Solar cells, which serve as inputs for module manufacturing, also attract a BCD of 25%, though certain exemptions exist for units operating under specific export promotion schemes.
In addition to BCD, solar panel imports attract IGST at 12% on the assessable value plus BCD. This effectively creates a cumulative tax incidence where IGST is calculated on the CIF value plus the 25% customs duty, resulting in a higher effective tax burden than the nominal rates suggest individually.
HS Code Classification for Solar Panel Imports
Proper classification under the Harmonized System (HS) codes is critical for determining applicable duties and avoiding customs disputes. Solar panels and modules from China typically fall under the following classifications:
HS Code 8541.43.00: Solar cells whether or not assembled into modules or made up into panels
HS Code 8541.40.11: Solar cells and photovoltaic cells not assembled
Note: HS Code 8501.31.00 (DC motors and generators) does not apply to solar panels or photovoltaic cells. This code is reserved for electric motors and generators, not solar photovoltaic equipment.
Misclassification can result in duty evasion penalties or overpayment of taxes, making pre-importation classification rulings advisable through the Advance Ruling mechanism under the Customs Act, 1962.
Anti-Dumping Duties and Safeguard Measures
Beyond regular customs duties, imports of solar panels from China may attract anti-dumping duties (ADD) and countervailing duties (CVD) when investigations determine that Chinese exporters are selling below fair market value or receiving unfair subsidies.
The Directorate General of Trade Remedies (DGTR) periodically initiates sunset review investigations to determine whether existing anti-dumping duties should continue. As of recent reviews, anti-dumping duties on certain Chinese solar products range from $0.08 to $0.81 per watt depending on the specific exporter and product type.
Additionally, the Ministry of New and Renewable Energy (MNRE) mandates that all solar modules must be listed in the Approved List of Models and Manufacturers (ALMM) for government projects, creating a non-tariff barrier that complements the import duty structure.
Step-by-Step Import Compliance Process
Importing solar panels from China requires strict adherence to the following procedural framework:
Solar panels must conform to Bureau of Indian Standards specifications (IS 14225 for crystalline silicon terrestrial photovoltaic modules) and carry the ISI mark or BIS registration where applicable.
3. File Bill of Entry
Submit customs declaration through ICEGATE with accurate HS classification, valuation, and country of origin determination.
4. Pay Duties
Remit BCD (25%), IGST (12%), and any applicable ADD/CVD through the Customs Duty Payment system.
5. Customs Examination
Physical inspection may verify specifications, wattage ratings, and prevent misclassification.
6. ALMM Compliance
For government sector supplies, ensure products and manufacturers appear on the MNRE's Approved List of Models and Manufacturers.
Cost Calculation Example: Total Landed Cost
To illustrate the financial impact of import duties, consider a commercial shipment of solar panels from China with a CIF value of ₹10,00,000:
CIF Value: ₹10,00,000
Basic Customs Duty (25%): ₹2,50,000
Assessable Value for IGST: ₹12,50,000 (CIF + BCD)
IGST (12%): ₹1,50,000
Social Welfare Surcharge (10% on BCD): ₹25,000
Total Duty Outlay: ₹4,25,000
Total Landed Cost: ₹14,25,000
Effective Duty Incidence: 42.5% of CIF value
Note: Anti-dumping duties would apply additionally depending on the specific exporter and product category, potentially adding $0.08-$0.81 per watt.
FAQ: Import Duty on Solar Panels from China India Trade
Q1: What is the current import duty on solar panels from China to India?
A: As of 2026, solar panels imported from China attract a Basic Customs Duty (BCD) of 25%, plus Integrated Goods and Services Tax (IGST) of 12% calculated on the CIF value plus BCD. Additionally, anti-dumping duties ranging from $0.08 to $0.81 per watt may apply depending on the specific Chinese exporter and product specifications.
Q2: Which HS codes classify solar panels and cells for import from China?
A: Solar panels and modules typically fall under HS Code 8541.43.00 (solar cells whether or not assembled into modules or panels) and HS Code 8541.40.11 (solar cells and photovoltaic cells not assembled). HS Code 8501.31.00 applies to DC motors and generators, not solar panels. Accurate classification is essential as duty rates and regulatory requirements vary by specific HS code.
Q3: How is the total import duty calculated for solar panels from China?
A: The calculation follows a cumulative structure: First, Basic Customs Duty at 25% is applied to the CIF value. Then, IGST at 12% is calculated on the sum of CIF value plus BCD. Additionally, Social Welfare Surcharge at 10% of the BCD amount applies. Anti-dumping duties, if applicable, are calculated per watt (typically $0.08-$0.81) based on the wattage capacity of the modules.
Q4: Are there any exemptions or schemes to reduce import duty on solar panels from China?
A: While the general BCD rate is 25%, certain exemptions exist under specific schemes. Units operating under the Advance Authorization scheme may import inputs (including solar cells) duty-free for export production. The EPCG (Export Promotion Capital Goods) scheme allows zero-duty import of capital goods, though this applies to manufacturing equipment rather than finished panels. Additionally, solar panels imported for specific government-approved R&D projects may qualify for conditional exemptions subject to Ministry of New and Renewable Energy (MNRE) approval.
Q5: What documents are required for importing solar panels from China to India?
A: Essential documentation includes: (1) Import Export Code (IEC) certificate from DGFT, (2) Bill of Entry filed through ICEGATE, (3) Commercial Invoice and Packing List from the Chinese supplier, (4) Bill of Lading or Airway Bill, (5) Certificate of Origin, (6) BIS certification or registration certificate proving compliance with Indian standards, (7) Insurance certificate, and (8) ALMM approval letter if supplying to government projects. Additionally, technical literature specifying wattage, efficiency ratings, and cell technology must accompany the shipment.
Conclusion
Navigating the import duty on solar panels from China to India requires meticulous attention to the multi-layered taxation structure encompassing Basic Customs Duty, IGST, and potential anti-dumping levies. With effective duty incidence reaching 40-50% of CIF value when including all surcharges, importers must conduct thorough landed cost analysis before finalizing procurement contracts. By ensuring accurate HS code classification, securing mandatory BIS certification, and maintaining compliance with MNRE's ALMM requirements, businesses can successfully import solar technology while adhering to India's evolving trade defense mechanisms. Always verify current rates through official CBIC notifications, as solar sector duties undergo frequent policy revisions to balance domestic manufacturing growth with renewable energy deployment targets.
Note: Duty rates and regulatory requirements are subject to change based on Finance Act amendments, DGTR investigations, and MNRE notifications. Consult licensed customs brokers and refer to official [CBIC](https://www.cbic.gov.in/) and [DGTR](https://dgtr.gov.in/) circulars for transaction-specific guidance.
Thinking about importing? We help Indian businesses navigate these complexities — from sourcing to doorstep delivery. Tell us what you need
