Categories
Uncategorized

Commerce to tariff solar imports from Southeast Asia, some by as much as 300%

The Dept. of Commerce today released its preliminary affirmative determination in the countervailing duty (CVD) case relating to solar cell imports from Southeast Asia. After an affirmative determination from the U.S. International Trade Commission in June that the U.S. solar panel manufacturing industry is being materially injured by imports of silicon solar cells and panels from Cambodia, Malaysia, Thailand and Vietnam, Commerce has been working on the tariff amounts to apply.

The preliminary CVD amounts range from less than 1% to nearly 300%, and tariff rates are expected to increase further at the time of the final determinations, said Tim Brightbill, partner at Wiley Rein and lead counsel to The American Alliance for Solar Manufacturing Trade Committee (AASMTC), which filed the AD/CVD petition earlier this year. The DOC’s preliminary determination in the antidumping (AD) case will likely come in November.

The preliminary subsidy rates are as follows:

Cambodia

 Solarspace New Energy
8.25%
 Jintek
68.45%
 All others
8.25%

Malaysia

 Hanwha Q CELLS
14.72%
 JinkoSolar
3.47%
 Baojia New Energy, Pax Union, and SunMax Energy
123.94%
 All others
9.13%

Thailand

Trina Solar
0.14%
Taihua New Energy, and Sunshine Electrical Energy
34.52%
All others
23.06%

Vietnam

 Boviet Solar
0.81%
 JA Solar
2.85%
 GEP New Energy, HT Solar, Shengtian New Energy Vina,Vietnam Green Energy Commercial Services Co.
292.61%
 All others
2.85%

Now that these preliminary numbers have been released, U.S. Customs and Border Protection (CBP) will begin collecting cash deposits at the border. If tariff rates increase in the final determinations, CBP will expand its collection to the higher rate. Commerce plans to release its final CVD determinations on or around Feb. 10, 2025.

Commerce noted that imports of solar cells, whether or not assembled into solar panels, from the four countries have increased because of unfair foreign subsidies, thus warranting the need for CVD action.

 Country
2021
2022
2023
 Cambodia Import Volume
799.2 MW
2,368.5 MW
6,722.3 MW
 Malaysia Import Volume
6,189.0 MW
3,296.6 MW
6,755.5 MW
 Thailand Import Volume
4,299.2 MW
4,624.7 MW
10,604.9 MW
 Vietnam Import Volume
5,335.9 MW
8,455.4 MW
12,301.52 MW

In August, a critical circumstances allegation was filed with Commerce regarding the surge in solar imports from Thailand and Vietnam specifically. Commerce is investigating the critical circumstance, and an affirmative there could impose retroactive duties on imports from the two countries. A finding in that area is expected soon.

Also in August, petitioner AASMTC filed another new subsidy allegation regarding Chinese manufacturers establishing silicon wafer operations in the four countries and polysilicon operations in Cambodia only. Commerce took up that investigation on Sept. 20.

See our extended coverage on the tariffs affecting the solar industry.