The Biden Administration immediately put imported bifacial photo voltaic panels again below Sec. 201 tariffs, after the specialty photo voltaic panels loved a two-year exemption from further duties first initiated by President Biden in 2022.
This resolution is a part of the President’s sole proper to make adjustments to in-progress tariffs below Sec. 201 of the 1974 Commerce Act, after the U.S. Worldwide Commerce Fee (USITC) filed its midterm report in February this 12 months. All imported photo voltaic panels (no matter nation of origin) are at present tariffed at 14.25% as a method to defend home photo voltaic panel producers from cheaper product coming from abroad. Bifacial panels have been initially exempt from the tariffs as a result of there was no important home manufacturing capability of the specialty product. This brought about extra bifacial modules to be imported into the US than monofacial panels, undermining the aims of the unique safeguard measure.
Information from Customs and Border Safety discovered that 7.3 GW of bifacial panels and 10.1 GW of monofacial panels have been imported in 2020. Throughout the interval of January-June 2023, 12.4 GW of bifacial panels and 1.4 GW of monofacial panels have been imported — an unbelievable flip in desire, with bifacial modules taking 81.6% of the imported module share. There are studies that bifacial modules account for practically 98% of imports immediately.
Biden’s resolution to reverse bifaical’s exemption was possible influenced by a latest petition to the U.S. Commerce Consultant by Hanwha Qcells and supported by fellow home producers First Photo voltaic, Heliene, Suniva, Silfab, Crossroads Photo voltaic, Mission Photo voltaic and Auxin Photo voltaic. The producers expressed that surging imports of bifacial panels have been inflicting corporations to rethink their home manufacturing plans, an effort private to President Biden and inspired by incentives within the Inflation Discount Act.
Timothy Brightbill, accomplice at Wiley Rein and commerce counsel to the American Alliance for Photo voltaic Manufacturing, offered a press release to Photo voltaic Energy World after the midterm report was filed in February: “There have been quite a few necessary bulletins of recent U.S. photo voltaic manufacturing capability as a result of Inflation Discount Act. It’s crucial that we rebuild the American photo voltaic provide chain and our management of this trade. Nevertheless, all of those new plans are actually being undermined and are in danger as a result of a world import surge and large value reductions. In keeping with most studies, costs are down 50% or extra, and imports are at the very least double present demand, resulting in stockpiling of photo voltaic panels in warehouses, the place they may proceed to depress the market,” he stated.
The Biden Administration is offering a slight safeguard to bifacial importers. These with pre-existing contracts for bifacial photo voltaic modules to be delivered inside 90 days of immediately’s exclusion elimination will have the ability to certify these contracts to proceed utilizing the exclusion for that interval.
Along with bifacial panels shedding their exemption, the Biden Administration stated it is going to increase the tariff-rate quota (TRQ) of silicon photo voltaic cells by 7.5 GW, if wanted. Presently, the primary 5 GW of silicon photo voltaic cells imported annually are exempt from tariffs, however the Biden Administration stated it is going to now probably enable 12.5 GW by untariffed. U.S. panel assemblers solely imported 3.6 GW of photo voltaic cells in 2023, however imports have elevated within the first few months of 2024.
Mike Carr, the manager director of the Photo voltaic Vitality Producers for America (SEMA) Coalition responded to immediately’s information:
“We commend the Biden administration for closing the loophole within the 201 safeguard bifacial exemption that was opened within the earlier administration. The 201 safeguard was so weakened as to be largely irrelevant by the bifacial exclusion. Lifting the exemption reinstates a 15% tariff, offering necessary, however sadly nonetheless inadequate, aid from anti-competitive commerce practices till the tariff is about to run out in February 2026.”
Abigail Ross Hopper, president and CEO of the Photo voltaic Vitality Industries Affiliation (SEIA), launched a press release:
“The administration took one other step to assist American photo voltaic module producers by elevating the Sec. 201 tariff fee quota on cells, as wanted. This transfer offers an necessary bridge for module producers to entry the availability they want whereas the US continues to advance photo voltaic cell manufacturing. Immediately’s resolution will assist create a robust, steady module manufacturing sector that may maintain strong cell manufacturing in the long term.”
