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U.S. to expand solar tariffs

Probe finds Chinese companies tried to dodge import fees

BY NICHOLA GROOM Reuters

The United States will impose new duties on some major Chinese solar panel makers after a monthslong investigation found they were trying to dodge tariffs by finishing their products in four Southeast Asian countries, trade officials said Friday.

The preliminary decision was bad news for U.S. solar project developers that rely on cheap imports to fuel their growth, but fell short of their worst fears that Washington would impose new tariffs to cover all solar shipments from the region, instead of just those from specific companies.

President Joe Biden has set a goal to decarbonize the nation’s power sector — the source of around a quarter of national greenhouse gas emissions — by 2035, something that will require rapid deployment of new solar, wind and other clean energy projects.

The U.S. Commerce Department probe found that units of BYD, Trina Solar, Longi Green Energy Technology and Canadian Solar were circumventing existing tariffs on Chinese solar cells and panels that have been in place for a decade.

If finalized next year, the determination means those companies will be subject to duties on the products they make in Malaysia, Cambodia, Thailand and Vietnam — countries that now account for about 80% of U.S. panel supplies.

Those companies and others will face the same duty rates

the United States assesses on their Chinese-made products, officials said, noting that most of those rates are below 35%.

The duties will not kick in until June 2024 thanks to a two-year waiver from Biden this year.

The announcement was welcomed by Auxin Solar, a small U.S. solar panel maker that requested the Commerce investigation in February. The tiny U.S. solar manufacturing industry has often sought trade protections to stem the flow of cheap Asian goods that they argue make their products uncompetitive.

“Commerce’s investigations have largely validated and confirmed Auxin’s allegations of Chinese cheating,” Auxin Chief Executive Mamun Rashid said in a statement.

Producers including New East Solar, Hanwha Q CELLS, Jinko Solar and Boviet Solar were found not to be dodging the tariffs, Commerce said. Other companies will have the ability to pursue a certification process to show that they are not circumventing tariffs.

A final decision from Commerce is expected in May.

“The only good news here is that Commerce didn’t target all imports from the subject countries,” Abigail Ross Hopper, president of solar trade group the Solar Energy Industries Association, said in an emailed statement.

Buyers of solar panels for both large utility projects and residential rooftops say new tariffs will worsen what is a difficult market for accessing solar energy equipment.

The industry has faced project delays for the last two years because of pandemic-related supply disruptions and a ban on goods made in China’s Xinjiang region over forced labor concerns.

The mere threat of new tariffs on solar imports also contributed to a slowdown in project development this year, the industry has said.

In response to those delays, Biden this year said new tariffs would be waived for two years. The waiver is meant to allow U.S. manufacturing time to ramp up, the White House has said.

BUSINESS

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2022-12-03T08:00:00.0000000Z

2022-12-03T08:00:00.0000000Z

https://daily.gazette.com/article/281861532530216

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