The Dept. of Commerce as we speak launched its preliminary resolution, stating that sure Chinese language photo voltaic cell and panel producers in 4 Southeast Asian nations are certainly working in these nations to keep away from paying duties on Chinese language-made photo voltaic items. Commerce has urged an extension of antidumping/countervailing duties (AD/CVD) to photo voltaic cell and panel imports from particular corporations working in Cambodia, Malaysia, Thailand and Vietnam.
Credit score: Namaste Photo voltaic
AD/CVD have been in place towards Chinese language photo voltaic imports since 2012. Commerce ought to launch its last willpower on Could 1, 2023.
The tariffs are towards crystalline silicon cells produced within the 4 nations from wafers produced in China and last panels made with wafers produced in China that additionally use two of the next Chinese language-made supplies: silver paste, aluminum frames, glass, backsheets, ethylene vinyl acetate sheets and junction packing containers. Wafers produced exterior of China with polysilicon sourced from China aren’t thought of to be wafers produced in China and aren’t included on this scope.
As we speak’s preliminary resolution from the Dept. of Commerce cites particular corporations actively circumventing earlier AD/CVD orders quite than issuing a brand new blanket order on every part coming from the 4 nations.
- Firms discovered to be circumventing the Chinese language tariff orders by working in Malaysia: AMC Cincaria, Flextronic Shah Alam, Funing Precision Part, Samsung, Vina Photo voltaic Expertise (LONGi).
- Firms discovered to be circumventing the Chinese language tariff orders by working in Thailand: Celestica, Inexperienced Photo voltaic Thailand, Lightup Creation, Thai Grasp Body, Three Arrows, Yuan Feng New Vitality, Photo voltaic PPM, Sunshine Electrical Vitality.
- Firms discovered to be circumventing the Chinese language tariff orders by working in Vietnam: World Vitality, GCL, Inexperienced Wing Photo voltaic Expertise, HT Photo voltaic, Irex Vitality, S-Photo voltaic, Venergy, Sunergy, Purple Solar Vitality.
- Firms discovered to be circumventing the Chinese language tariff orders by working in Cambodia: none.
- Firms explicitly acknowledged inside Commerce paperwork to NOT be circumventing the Chinese language tariff orders by working in Southeast Asia and subsequently EXEMPT from any further tariffs: New East Photo voltaic (Cambodia), Hanwha Qcells (Malaysia), JinkoSolar (Malaysia) and Boviet Photo voltaic (Vietnam).
This investigation has hung over the U.S. photo voltaic trade for 2 years. A bunch of nameless photo voltaic panel producers first requested Commerce to have a look in 2021 at particular Chinese language photo voltaic panel producers working in Southeast Asia as a technique to circumvent AD/CVD necessities. Commerce rejected that petition due to the nameless nature of the petitioners. California-based photo voltaic panel assembler Auxin Photo voltaic then put its identify on a brand new petition in 2022 and have become the primary voice behind the request. Auxin officers declare that Chinese language photo voltaic producers working in Southeast Asia are unfairly pricing their merchandise to undercut American producers.
As soon as the investigation started, module provide from Southeast Asia — a area that equipped 80% of U.S. demand in earlier years — grew to become restricted. Many producers have been ready to see DOC’s resolution earlier than delivery panels (that will have retroactive duties) to the USA. This uncertainty — together with world provide chain points — led President Joe Biden to announce a two-year pause on any further tariffs in June 2022. The Biden Administration postponed any tariff initiation to “make sure the U.S. has entry to a enough provide of photo voltaic modules to satisfy electrical energy era wants whereas home manufacturing scales up.” As we speak’s tariff resolution (with its Could 2023 last willpower deadline) is not going to go into impact till after June 6, 2024 because of Biden’s government motion.
Credit score: S&P World
S&P World analyzed U.S. solar panel imports since Biden’s two-year tariff waiver and located a dramatic spike in imported photo voltaic panels in Q3 2022. The variety of delivery containers carrying photo voltaic panels to U.S. ports jumped 59% from Q2.
The group discovered that 82% of photo voltaic panels imported in Q3 2022 got here from the 4 Southeast Asian nations on the heart of this case. Vietnam accounted for 41.6%, Malaysia was 20.1%, Thailand was 14.3% and Cambodia was 5.7%. Chinese language imports accounted for less than 0.1% of the U.S. provide throughout the identical interval. U.S. module consumers are totally making the most of Biden’s pause on tariffs.
Credit score: S&P World
Whereas there have been extra bulletins for brand spanking new U.S. photo voltaic cell and panel manufacturing outfits because the inclusion of tax credit within the Inflation Discount Act this previous summer season, the nation’s demand far outpaces provide, and photo voltaic panels will should proceed to be imported. These new tariffs will contact all markets — residential via utility-scale — starting in 2024 and past.
As we speak’s particular firm define is nice information for South Korea’s Hanwha Group. Hanwha’s giant photo voltaic cell and panel manufacturing outfit in Malaysia will be capable to help within the firm’s U.S. manufacturing growth efforts with out additional tariffs. Maxeon, a Singaporean firm that makes photo voltaic cells in Malaysia, can also be planning a U.S. manufacturing that will rely on Malaysian product throughout ramp-up. Whereas not talked about in both the tariffed or nontariffed camp as we speak, Maxeon officers had beforehand advised Photo voltaic Energy World that the corporate would strive for a tariff exclusion because of Maxeon’s “premium pricing” that might not be interpreted as dumping. We aren’t conscious of what wafers Maxeon makes use of in its merchandise.
SPW will replace this story as extra data turns into obtainable.
