U.S. Department of Commerce issues final rulings; proposes 24% - 255% tariffs for imports of Chinese PV cells

- Preliminary tariffs have led to many Chinese PV module producers sourcing cells from Taiwan
The U.S. Department of Commerce (DOC) has issued a final ruling on its anti-dumping and countervailing duty (CVD) investigations regarding solar photovoltaic (PV) cells manufactured in China and modules assembled from those cells.
The ruling finds dumping margins between 18% and 250% and countervailable subsidies of 15-16%. Trina Solar received the lowest margins at 18% dumping and 16% CVD, with most large Chinese PV producers receiving a 26% anti-dumping and 15% CVD ruling.
These margins will be the basis for tariffs, if upheld by the International Trade Commission at a ruling on November 7th, 2012. SolarWorld Industries America (Hillsboro, Oregon, U.S.) which initiated the investigations, applauded the decision.
"SolarWorld and the Coalition for American Solar Manufacturing have fought only to give the solar-pioneering domestic industry a fair chance to continue to compete by removing China’s trade distortions from the U.S. market," said SolarWorld Industries America President Gordon Brinser.
"Only fair competition can provide sustainable gains in technological efficiency, cost reduction and end-user pricing. Commerce’s decision raises the industry’s chances of reclaiming equal footing for domestic, sustainable and environmentally sound solar-technology producers and their jobs."
CASE notes scope of investigation
The Coalition for Affordable Solar Energy (CASE), which opposed the investigation, expressed relief at the scope of the investigation and the level of margins.
"We are gratified that the scope of today’s decision is limited only to solar cells made in China and that the Department did not significantly increase the tariff from its preliminary decision in May," stated CASE President Jigar Shah.
"We are hopeful that continued innovations in technology, a competitive global marketplace, and demand-generated pressure for lower prices will take precedence moving forward. At the same time, we remain concerned about the growing global trade war, which will only hurt American solar industry jobs, growth and consumers."
Suntech, smaller PV makers assessed at higher margins
Suntech was also singled out for different margins, with DOC finding a higher dumping margin of 32% and a slightly lower subsidy rate of 15%.
Aside from Suntech and Trina, DOC assessed 59 PV manufacturers including JA Solar, Yingli, LDK Solar, JinkoSolar, Canadian Solar and other large Chinese PV cell manufacturers at a dumping margin of 26%.
All other Chinese PV cell manufacturers were assessed at 250% dumping margins, which could close off the U.S. market to tier 2 Chinese suppliers.
Final tariff rates will be lower than the combined dumping and countervailing duty margins, as the ruling subtracts a 10-11% export subsidy to avoid duplication. Final tariff rates are projected at 24% for Trina to 255% for non-listed manufacturers.
Critical conditions upheld
The DOC also upheld "critical conditions" in the anti-dumping investigation, meaning that duties will be retroactively applied 90 days from the date of publication of the DOC's preliminary decision.
This applies to all companies except Suntech, for which anti-dumping duties will start from the date of publication of the DOC's preliminary determination. The International Trade Commission will also rule on critical circumstances on November 7th, 2012.
Preliminary rulings led to PV cell outsourcing
The ruling applies to Chinese-made crystalline silicon PV cells and modules made from those cells, including BIPV modules. Thin film PV is not within the scope of the investigation.
Chinese PV producers have already been required to post deposits on exports to the U.S., based on preliminary rulings on both the anti-dumping and CVD investigations in March and May of 2012. The rulings also led to many Chinese module manufacturers sourcing cells for U.S.-bound modules from Taiwan and other locations.
2012-10-11 | Courtesy: U.S. Department of Commerce; image: Arise Technologies | solarserver.com © Heindl Server GmbH
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