The temporary pause on import collection and tariff enforcement on imports of Chinese-origin solar cells and panels from Cambodia, Malaysia, Thailand and Vietnam, which have been found to circumvent U.S. trade laws, expires today. Starting tomorrow, anti-dumping/countervailing duties (AD/CVD) will be imposed on imports of solar panels from the four Southeast Asian countries.
In August 2023, the Commerce Department determined that Chinese solar cell and panel manufacturers were operating in Cambodia, Malaysia, Thailand and Vietnam as a way to avoid paying duties on Chinese-made solar products that have been in effect since 2012. The tariffs were extended to solar exports from Southeast Asia – with the exception of products from Hanwha Qcells (Malaysia), JinkoSolar (Malaysia) and Boviet Solar (Vietnam), which were found not to be circumventing the trade orders.
However, in June 2022, President Joe Biden issued a pause on tax collection until after June 6, 2024. Because there was not yet sufficient supply of domestic solar products, the Biden administration offered a pause to panel buyers rather than restricting supply during the trade war. research. The sector has benefited from the pause: there has been a strong increase in imports since June 2022.
Although AD/CVD enforcement will begin tomorrow, it is unlikely to have a significant impact on Southeast Asian products. The August 2023 AD/CVD decision allows manufacturers using non-Chinese wafers or at least four solar components (silver paste, aluminum frames, glass, backplates, EVA plates, junction boxes) made outside China to be exempted from the AD/CVD orders. Affected companies have shifted their supply chains over the past two years to produce non-bypass solar products.
That’s the reason The Committee of the American Alliance for Solar Manufacturing Trade (AASMT). filed a second AD/CVD petition in April 2024, and the U.S. International Trade Commission (USITC) should announce its preliminary decision on the matter in the coming days.
Regarding today’s expiration of the AD/CVD pause, Tim Brightbill, lead counsel for the AASMT Committee, said: “The circumvention investigation and the industry’s response to it followed the same pattern we’ve seen in many trade-related cases in solar energy against Chinese companies. Owned companies: They deny the allegations, predict disaster if tariffs are imposed, and then quickly adjust their operations to avoid tariffs. Companies in Vietnam, Malaysia, Thailand and Cambodia did just that, products into our markets and harming our workers. Secondly, they have moved additional production to these four countries, which makes our new AD/CVD cases so important, with over 40 GW of new wafer capacity built in Southeast Asia. To prevent the circumvention scheme in recent years, we expect it end of this moratorium will have a relatively minor impact on leveling the playing field for our domestic industry.”
The incredible amount of solar panels imported before today must be used within 180 days or you will be charged full AD/CVD amounts. U.S. Customs and Border Protection reminded solar buyers earlier this year that they will enforce this, and that all imported cells and panels not used within the expiration date will be subject to AD/CVD.
“Goods that remain in inventory or in a warehouse in the United States, are resold to another party, then exported, or destroyed after importation are not considered used,” according to the CBP.
