Commerce Finds Circumvention in Solar Cell Supply.

After a investigation of eight companies across the four countries, Commerce found that five of the eight companies investigated are attempting to bypass U.S. duties by doing minor processing in one of the Southeast Asian countries before shipping to the United States. 

Commerce  announced Friday that certain Chinese producers are shipping their solar products through Cambodia, Malaysia, Thailand, and/or Vietnam for minor processing in an attempt to avoid paying antidumping and countervailing duties (AD/CVD). 

The final determination affirms the preliminary findings.  Commerce found that five companies were attempting to avoid the payment of U.S. duties by completing minor processing in third countries, Commerce also found that certain unexamined companies were circumventing.   Three companies were found not to be circumventing.

These final decisions will not have an immediate impact on the border.  Pursuant to the Presidential Proclamation issued on June 6, 2022, duties will not be collected on any solar module and cell imports from these four countries until June 2024.  This provides U.S. solar importers with time to adjust supply chains.

Solar cells made in one of the four Southeast Asian countries, even if made from wafers from China, that are then exported to a non-inquiry country and further assembled into modules or other products there, before exportation to the United States, are not subject to Commerce’s final circumvention findings. 

The final findings are as follows: 

Further, for those companies in Malaysia, Thailand and Vietnam that did not respond to Commerce’s request for information in this investigation, they were found to be circumventing. 

Because Commerce found that circumvention was occurring through each of the four Southeast Asian countries, Commerce continues to make “country-wide” circumvention findings, which simply designates each country as one through which solar cells and modules are being circumvented from China.  

This does not constitute a ban on imports from those countries.  Companies in these countries will be permitted to certify that they are not circumventing the AD/CVD orders, in which case the circumvention findings will not apply.   

For more information on antidumping and countervailing duties, visit the International Trade Administration’s FAQs. 

Public records on this investigation can be found at access.trade.gov under case number A-570-979.