On November 7th, 2012 the U.S. International Trade Commission (ITC) unanimously confirmed the imposition of anti-dumping and countervailing duties between 24% and 255% on imports of crystalline silicon solar photovoltaic (PV) cells from China, and modules made from those cells.

However, the ITC rejected the application of critical circumstances, meaning that tariffs will not be retroactive from the date of preliminary decisions. The trade case, initiated through a petition filed by SolarWorld AG's (Bonn, Germany) U.S. subsidiary, has divided the U.S. and global solar industry.

"U.S. producers are grateful for the diligence that the ITC and its staff invested in this complex case at the crossroads of the world’s energy future," said SolarWorld Industries America Inc. President Gordon Brinser.

"The vote comes too late for hundreds of American workers laid off from more than two dozen U.S. factories that China’s state-sponsored export campaign drove into financial peril. But the decision offers some hope to survivors that China might be held accountable to its legal obligations and that this U.S.-pioneered industry might see a fair chance to play a growing role in the nation’s energy independence."

CASE: Trade war a distraction

The Coalition for Affordable Solar Energy (CASE) also responded to the ruling.

"Today’s expected decision by the ITC marks the end of a distracting and politically-charged trade case between the U.S. and China regarding imports of solar cells," notes CASE President Jigar Shah.

"Although this ruling was anticipated given the ITC’s low threshold for injury determinations, we are nevertheless disappointed that they have left in place the Commerce Department’s tariffs on solar cell imports. Fortunately, the scope of the decision is unchanged and is limited to solar cells produced in China, thereby minimizing harm to the U.S. solar industry."

Lower tariffs for larger PV producers

Duties will be different for different suppliers, with combined tariff rates of 24% for Trina Solar, 36% for Suntech, and around 30% for most large Chinese PV manufacturers, including Yingli, LDK Solar and Canadian Solar.

Aside from 61 named manufacturers, all other Chinese PV cell manufacturers will suffer 255% combined duties, which could effectively close off the U.S. market to tier 2 Chinese suppliers.

Retroactive tariffs rejected

Under the critical circumstances ruling these tariffs would have applied to all shipments starting 90 days before preliminary rulings by the U.S. Department of Commerce. However, critical circumstances were rejected in a 4-2 vote, and as a result the countervailing duties will begin from March 2012 and anti-dumping duties from May 2012.

Tariffs apply only to cells, not modules

Despite the high rate of these tariffs, their application only to Chinese PV cells and modules made from these cells has allowed many manufacturers to avoid duties by sourcing cells for U.S.-bound PV modules from factories outside China.

SolarWorld initially petitioned for tariffs on both Chinese-made PV cells and modules, and has said that it will pursue an expansion of the trade investigation to include Chinese-made PV modules, regardless of the origin of the cells.

2012-11-08 | Courtesy: ITC; Image: Suntech | solarserver.com © Heindl Server GmbH

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