On Monday, President Biden issued an Executive Order suspending the gathering of anti-dumping and countervailing duties (AD/CVD) of sure photo voltaic cells and modules exported from Cambodia, Malaysia, Thailand, and Vietnam. The Govt Order comes on the heels of a Commerce Division investigation initiated again in March 2022 into whether or not photo voltaic cell and modules from the aforementioned international locations have been circumventing AD/CVD duties on photo voltaic cells and modules made in China. The anticircumvention investigation, nonetheless, will proceed to run its regular course, and if circumvention is discovered, AD/CVD duties won’t be imposed till the top of the 24 month interval (or till the emergency is asserted terminated) (see here).
President Biden additionally took actions to speed up home manufacturing of photo voltaic modules. President Biden tied the 24-month maintain on AD/CVD duties to this initiative to speed up home manufacturing, expressly referring to it as “a 24-month bridge as domestic manufacturing rapidly scales up” (see here).
The 2-year responsibility reduction will possible be welcomed by photo voltaic venture builders in the USA and their non-U.S. suppliers. The AD/CVD duties on Chinese language and Taiwanese photo voltaic gear, in addition to the uncertainty of potential duties on photo voltaic gear from 4 different international locations, had already created important provide chain disruptions and disputes on which events would possibly take accountability for the big price hikes the duties would characterize for a photo voltaic power venture.
The Commerce Division Inquiry will Proceed Uninterrupted: The President’s announcement of a 24-month reprieve on AD/CVD duties won’t affect the Commerce Division’s investigation into whether or not photo voltaic cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam are circumventing AD/CVD orders on photo voltaic cells and modules from China. The petition that catalyzed the anti-circumvention inquiry claimed that minor manufacturing steps have been occurring in these 4 international locations to keep away from the AD/CVD duties.
If Commerce Finds Circumvention, Any Sensible Impact will take Place After the AD/CVD Maintain is Lifted: A preliminary dedication on the investigation is due by August 29, 2022. Beneath present rules, the Commerce Division could impose retroactive duties. Nonetheless, that is unlikely provided that any resolution on circumvention and related AD/CVD responsibility charges is virtually moot till and except the AD/CVD maintain is lifted.
Present Duties on Chinese language and Taiwanese Imports will Stay in Impact: Regardless of the 2-year maintain on duties from photo voltaic cells and modules from Cambodia, Malaysia, Thailand, and Vietnam, current duties on Chinese language and Taiwanese imports of photo voltaic cells and module will stay in impact.