The enforcement and compliance arm of the U.S. Division of Commerce intends to investigate whether or not imported photo voltaic cells and modules from Vietnam, Malaysia, Thailand and Cambodia are circumventing federal antidumping and countervailing responsibility orders on crystalline silicon photovoltaic cells from China.
The choice was prompted by a request from U.S.-based photo voltaic firm Auxin Photo voltaic, which in February reached out to the division and requested that regulators look into whether or not photo voltaic cells or modules produced or assembled in these Southeast Asia nations use components or parts from China.
In that case, these cells and modules could also be topic to the identical or related antidumping and countervailing duties, including vital downstream prices to those merchandise and, in flip, doubtlessly growing the price of photo voltaic installations total.
On the coronary heart of the difficulty is Auxin’s rivalry that U.S.-based photo voltaic producers and assemblers can not compete with low-priced photo voltaic merchandise coming from China: the principle driver behind the antidumping and countervailing duties themselves.
Opponents resembling Auxin consider these tariffs, nonetheless, have little impact if Chinese language photo voltaic producers – Jinko Photo voltaic, Hanwha Q CELLS, Trina Photo voltaic, Yingli, JA Photo voltaic and others – can merely export supplies and merchandise to locations like Vietnam, Malaysia, Thailand and Cambodia for closing manufacturing and meeting, and thereafter exportation to the U.S., circumventing the tariffs.
The trade’s largest commerce teams and advocates fall on the facet of the bigger provide chain, stressing that the commerce division’s resolution to additional examine alleged circumvention and doubtlessly increase photo voltaic tariffs can be profoundly opposed.
“This misstep can have a devastating impression on the U.S. photo voltaic market at a time when photo voltaic costs are climbing, and undertaking delays and cancellations are including up,” Photo voltaic Power Industries Affiliation (SEIA) president and CEO Abigail Ross Hopper stated in an announcement.
“President Biden has been clear that one of the best ways to develop home manufacturing is to create a coverage setting that encourages personal funding. This resolution immediately contradicts that aim – extra tariffs should not the reply,” she added.
The American Clear Energy Affiliation (ACP) echoed SEIA’s response.
“If its dedication to a clear vitality future is actual, the administration will reverse this resolution instantly,” remarked ACP CEO Heather Zichal, noting that the Division of Commerce “drove a stake by way of the center of deliberate photo voltaic tasks and choked off as much as 80 p.c of the photo voltaic panel provide to the U.S.”
“Daily this investigation hangs over the photo voltaic neighborhood is a day of misplaced jobs and postponed photo voltaic tasks vital to the administration’s local weather agenda,” she added.
The division has not issued a proper set of actions or a timeline for its circumvention inquiries.