The short-term pause on obligation assortment and tariff enforcement for Chinese language-origin photo voltaic cell and panel imports from Cambodia, Malaysia, Thailand and Vietnam discovered to be circumventing U.S. commerce regulation expires right this moment. Starting tomorrow, antidumping/countervailing duties (AD/CVD) shall be imposed on photo voltaic panel imports from the 4 Southeast Asian nations.
In August 2023, the Commerce Dept. decided that Chinese language photo voltaic cell and panel producers had been working in Cambodia, Malaysia, Thailand and Vietnam as a technique to keep away from paying duties on Chinese language-made photo voltaic items which were in place since 2012. AD/CVD charges had been prolonged to photo voltaic exports popping out of Southeast Asia — apart from merchandise from Hanwha Qcells (Malaysia), JinkoSolar (Malaysia) and Boviet Photo voltaic (Vietnam), which had been discovered to not be circumventing the commerce orders.
Nevertheless, in June 2022, President Joe Biden issued a pause on obligation assortment till after June 6, 2024. Since there was not but a adequate provide of home photo voltaic merchandise, the Biden Administration offered a break to panel patrons as an alternative of limiting provide throughout Commerce’s investigation. The business has taken benefit of the pause — a surge in imports has been seen since June 2022.
Though AD/CVD enforcement will start tomorrow, it’s unlikely to considerably have an effect on product coming from Southeast Asia. The August 2023 AD/CVD choice permits producers that use non-Chinese language wafers or at the very least 4 photo voltaic elements (silver paste, aluminum frames, glass, backsheets, EVA sheets, junction containers) made exterior of China to be exempt from the AD/CVD orders. Affected corporations have been relocating their provide chains within the final two years to provide non-circumventing photo voltaic merchandise.
That’s the reason The American Alliance for Photo voltaic Manufacturing Commerce (AASMT) Committee submitted a second AD/CVD petition in April 2024, and the U.S. Worldwide Commerce Fee (USITC) ought to reveal its preliminary choice on the matter within the subsequent few days.
In reference to right this moment’s AD/CVD pause expiration, Tim Brightbill, lead counsel for the AASMT Committee, mentioned: “The circumvention investigation, and the business’s response to it, adopted the identical sample we’ve seen with many photo voltaic commerce circumstances towards Chinese language-owned corporations: They deny the allegations, predict catastrophe if tariffs are imposed after which rapidly regulate their operations to keep away from duties. Given two years to regulate, corporations in Vietnam, Malaysia, Thailand and Cambodia did simply that. First, they proceeded to dump their merchandise in our markets and hurt our employees. Second, they moved extra manufacturing to those 4 nations, which is what makes our new AD/CVD circumstances so vital. Because of this, with greater than 40 GW of recent wafer capability in-built Southeast Asia lately to keep away from the circumvention ruling, we anticipate the top of this moratorium to have a comparatively small affect on leveling the taking part in discipline for our home business.”
The unbelievable quantity of photo voltaic panels imported earlier than right this moment have to be used inside 180 days or the total AD/CVD quantities shall be charged. U.S. Customs and Border Safety reminded photo voltaic patrons earlier this yr that it’ll implement this, and all imported cells and panels not used inside the expiration date shall be topic to AD/CVD.
“Merchandise which stays in stock or a warehouse in america, is resold to a different celebration, is subsequently exported or is destroyed after importation just isn’t thought-about utilized,” CBP acknowledged.
