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					</table><p>The <a href="https://www.cit.uscourts.gov/" target="_blank" rel="noopener">U.S. Court of International Trade</a> has struck down the Biden administration’s two-year moratorium on anti-dumping (AD) and countervailing duty (CVD) collections for solar imports from Cambodia, Malaysia, Thailand, and Vietnam.</p>
<p>The duty pause originated in June 2022 when the White House <a href="https://www.mercomindia.com/us-pauses-circumvention-duties-on-solar-panel-imports" target="_blank" rel="noopener">declared</a> a clean energy emergency and issued Proclamation 10414. This authorized a 24-month deferral of duties on imported solar cells and modules to help ease supply shortages and accelerate renewable energy deployment.</p>
<p>In September 2022, the Commerce Department codified this pause by issuing regulations that effectively suspended liquidation and duty collection on qualifying imports from the four Southeast Asian nations. However, in August 2023, Commerce <a href="https://www.mercomindia.com/us-circumvention-inquiries-solar-products-china" target="_blank" rel="noopener">issued</a> final circumvention determinations concluding that certain Chinese solar components completed in these countries were effectively circumventing existing AD/CVD orders on China.</p>
<p>Now that the moratorium has been struck down, any entries made during the two years are subject to retroactive duties. This creates significant financial exposure for importers and developers who relied on the moratorium for tariff-free access to Southeast Asian modules.</p>
<p>As a result, Commerce has been directed to cancel the framework, and U.S. Customs and Border Protection can now assess and collect duties on all qualifying imports that entered between June 6, 2022, and June 6, 2024.</p>
<p>Over the entire two-year moratorium period, Coalition for Prosperous America estimates imports worth $53.9 billion to $67.4 billion, or 71 GW to 88 GW, could hypothetically be subject to retroactive duties.</p>
<p>The decision came as a result of a petition filed by Auxin Solar and Concept Clean Energy.</p>
<p>Beyond the immediate impact on Southeast Asian imports, the decision signals continued momentum behind U.S. trade enforcement in the solar segment. Recently, the U.S. International Trade Commission <a href="https://www.mercomindia.com/usitc-votes-to-go-ahead-with-probe-into-solar-imports-from-india/" target="_blank" rel="noopener">voted</a> to continue its investigations of imports of crystalline silicon photovoltaic cells, whether or not assembled into modules, from India, Indonesia, and Laos.</p>
<p>Indian solar exporters have, however, <a href="https://www.mercomindia.com/indian-solar-exporters-claim-us-anti-dumping-petitions-unfounded" target="_blank" rel="noopener">dismissed</a> the allegation that they are selling below cost or that the government has subsidized them as unfounded.</p>


US Court Rules Biden-era Moratorium on Solar Import Duties Illegal


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					</table><p>The <a href="https://aasmt.org/" target="_blank" rel="noopener">Alliance for American Solar Manufacturing and Trade</a> has filed new anti-dumping and countervailing duty petitions with the U.S. International Trade Commission (USITC) and the U.S. Department of Commerce against imports of crystalline silicon photovoltaic cells, whether or not assembled into modules, from India, Indonesia, and Laos.</p>
<p>These petitions allege that companies based in India and largely Chinese-owned manufacturers operating in Indonesia and Laos are engaging in illegal trade practices by undercutting the U.S. solar manufacturing industry and flooding the market with cheaper imports.</p>
<p>The petitions identify significant dumping margins for each country involved. India faces a margin of 213.96%, Indonesia 89.65%, and Laos between 245.79 and 249.09%.</p>
<p>The petitioners include First Solar, Mission Solar Energy, and Qcells, with support from Talon PV Solar Solutions.</p>
<p>Commerce is expected to decide whether to initiate formal investigations within 20 days or by August 6, 2025. USITC is expected to issue a preliminary determination on whether there is a reasonable indication of material injury or threat of injury to the U.S. solar manufacturing industry within 45 days or by August 31, 2025.</p>
<p>These petitions have been filed at a time when there is an <a href="https://www.mercomindia.com/indias-solar-exports-up-26-imports-surge-80-2-qoq-in-q1-2025/" target="_blank" rel="noopener">increase</a> in Indian solar exports to the U.S. In the first quarter of 2025, Indian solar module and cell exports increased by 26.1% quarter-over-quarter, reaching $267.6 million (~₹23.1 billion), up from $212.2 million (~₹17.92 billion) in the previous quarter. The U.S. was by far the largest destination, accounting for 99.5 % of India’s total solar exports during that period.</p>
<p>The new petitions follow a recent decision by the USITC in May, which <a href="https://www.mercomindia.com/southeast-asia-braces-for-steep-us-anti-dumping-duties-on-solar-cells" target="_blank" rel="noopener">concluded</a> that U.S. solar manufacturers had suffered material injury from imports of crystalline silicon photovoltaic cells and modules originating in Cambodia, Malaysia, Thailand, and Vietnam. That ruling marked the end to a year-long investigation prompted by a similar complaint filed last year by the American Alliance for Solar Manufacturing Trade Committee.</p>
<p>The U.S. Department of Commerce is also <a href="https://www.mercomindia.com/us-initiates-national-security-investigation-into-polysilicon-imports/" target="_blank" rel="noopener">investigating</a> the effects of importing polysilicon and its derivatives to assess the potential for export restrictions by foreign nations, including their ability to weaponize their control over polysilicon and its derivatives. Polysilicon is a key material used in the production of solar cells.</p>
<p>Last October, the U.S. <a href="https://www.mercomindia.com/us-slaps-anti-dumping-duties-on-indian-aluminum-extrusions-used-in-solar-racking" target="_blank" rel="noopener">imposed</a> anti-dumping duties at rates ranging from 2.02% to 376.85% and countervailing duties at rates ranging from 1.44% to 168.81% on aluminum extrusions, which are used in trackers and mounting structures for solar modules imported from 14 countries, including India.</p>


US Solar Manufacturers File Trade Petitions Against Solar Exports from India


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					</table><p>The <a href="https://www.commerce.gov/" target="_blank" rel="noopener">U.S. Department of Commerce</a> has found that certain Chinese solar manufacturers have been evading antidumping duty (AD) and countervailing duty (CVD) regulations by assembling solar cells and modules within Southeast Asia. These products are subsequently shipped to the United States.</p>
<p>In its final findings, the investigation revealed that some solar cells and modules exported from Cambodia, Thailand, Malaysia, and Vietnam incorporated wafers that originated in China, contravening U.S. tariffs.</p>
<p>The inquiry identified several companies involved in the circumvention of tariffs. Among them are BYD Hong Kong (Cambodia), New East Solar (Cambodia), Canadian Solar (Thailand), Trina Solar (Vietnam), and Vina Solar (Vietnam).</p>
<p>BYD Hong Kong, Canadian Solar, Trina Solar, and Vina Solar had previously been <a href="https://www.mercomindia.com/us-finds-chinese-module-manufacturers-evading-tariffs" target="_blank" rel="noopener">found</a> to be circumventing tariffs in December last year.</p>
<p>The final decisions will not immediately impact trade at the border. According to the Presidential Proclamation issued on June 6, 2022, solar module and cell imports from the countries above will not be <a href="https://mercomindia.com/president-biden-waives-duties-solar-module-imports/" target="_blank" rel="noopener">subject</a> to duties until June 2024, provided that these imports are utilized in the U.S. market within six months following the termination of the proclamation.</p>
<p>This allows U.S. solar importers ample time to adjust their supply chains and ensure their sourcing practices align with U.S. trade regulations.</p>
<p>The Department has clarified that these findings do not ban imports from these South East Asian countries. Companies will have the opportunity to affirm through certification that they are adhering to duties and not circumventing them; this would exempt them from the circumvention rulings.</p>
<p>The Department establishes that a company is deemed to have evaded tariffs when it utilizes Chinese wafers and at least two of the following materials: silver paste, aluminum frames, glass, backsheets, ethylene vinyl acetate sheets, and junction boxes.</p>
<p>In cases where a company does not possess an existing tariff rate, it will be subject to an AD rate of 238.95% and a CVD rate of 15.24%. If a company previously held a tariff rate from a preceding order, that specific rate will be applicable. However, in instances where the company does not possess a tariff rate, it will adopt the tariff rate of the company from which it sources Chinese materials.</p>
<p>If these scenarios do not apply, the company will be subjected to an antidumping duty rate of 238.95% and a countervailing duty rate of 15.24%.</p>
<p>As the Commerce Department initially determined that circumvention was taking place across all four Southeast Asian countries, the agency is issuing a comprehensive country-wide designation for circumvention. This designation implies that these countries are identified collectively as channels through which solar cells and modules are evading duties on their route from China.</p>
<p>Under U.S. law, the Commerce Department can initiate circumvention inquiries where evidence indicates that goods subjected to existing AD or CVD orders are either completed or assembled in third countries using components imported from the country subject to the order. The imposition of tariff orders is intended to provide relief to domestic industries within the United States when confronted with inequitable competition.</p>


US Concludes Circumvention Inquiries on Solar Products from China


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					</table><p>The <a href="https://www.commerce.gov/" target="_blank" rel="noopener">U.S. Department of Commerce</a> found that Chinese solar manufacturers are evading antidumping duty (AD) and countervailing duty (CVD) by assembling solar cells and modules in Southeast Asia before shipping them to the U.S.</p>
<p>The probe found that some solar cells and modules exported from Cambodia, Thailand, Malaysia, and Vietnam used wafers produced in China in violation of U.S. tariffs.</p>
<p>Further, the agency found that BYD Hong Kong (Cambodia), Canadian Solar (Thailand), Trina Solar (Vietnam), and Vina Solar (Vietnam) were circumventing tariffs.</p>
<p>The department determines a company to have circumvented tariffs if it uses Chinese wafers and more than two of the following materials− silver paste, aluminum frames, glass, backsheets, ethylene vinyl acetate sheets, and junction boxes.</p>
<p>If a company does not already have a tariff rate, it will have an AD of 238.95% and a CVD of 15.24%.</p>
<p>Additionally, if the company already had a tariff rate from the previous order, that rate will be used. But if the company does not have a tariff rate, it will use the tariff rate from the company from which it imports Chinese materials.</p>
<p>If this does not apply, the company will use AD of 238.95% and CVD of 15.24%.</p>
<p>However, the department stated that this does not constitute a ban on imports from those countries. The companies will be permitted to certify that they are not circumventing the duties, in which case the circumvention findings will not apply.</p>
<p>These findings are preliminary, and as a next step, Commerce will conduct in-person audits in the coming months to verify the information that was the basis of its finding.</p>
<p>Furthermore, all parties will have an opportunity to comment on the finding, which Commerce will fully consider before issuing its final determination scheduled for May 1, 2023.</p>
<p>As Commerce preliminarily found that circumvention was occurring through each of the four Southeast Asian countries, the agency is making a country-wide circumvention finding, which designates the country as one through which solar cells and modules are being circumvented from China.</p>
<p>The outcome of the probe is unlikely to lead to an immediate increase in solar tariffs as in June, President Biden <a href="https://mercomindia.com/president-biden-waives-duties-solar-module-imports/" target="_blank" rel="noopener">waived</a> duties on the solar module and cell imports from Cambodia, Thailand, Malaysia, and Vietnam until June 2024. The proclamation was issued to ensure that U.S. solar importers received sufficient time to adjust supply chains and that sourcing is not happening from companies violating U.S. law.</p>
<p>Under U.S. law, Commerce may conduct a circumvention inquiry when evidence suggests that merchandise subject to an existing AD or CVD order is completed or assembled in third countries from parts and components imported from the country subject to the order.</p>
<p>The tariff orders are designed to relieve the U.S. domestic industries when facing unfair competition.</p>
<p>The probe was <a href="https://mercomindia.com/us-probe-solar-module-imports-southeast-asia/" target="_blank" rel="noopener">conducted</a> at the behest of California-based solar module manufacturer Auxin Solar, which had filed the petition to determine whether crystalline silicon photovoltaic cells and modules containing such cells produced in Malaysia, Cambodia, Thailand, and Vietnam use parts and components from China. And whether it circumvents the AD and CVD orders on solar cells and modules.</p>
<p>Last year, <a href="https://mercomindia.com/us-commerce-department-petition-solar-imports/" target="_blank" rel="noopener">Mercom</a> reported a similar development where the Department of Commerce rejected a circumvention petition filed by an anonymous group of domestic solar manufacturers known as American Solar Manufacturers Against Chinese Circumvention (A-SMACC). The department had explicitly pointed to the anonymity of A-SMACC and said it was the sole reason for the rejection. The department had also ruled that the names of A-SMACC members be made public so interested parties could comment on the nature of their involvement in the matter.</p>


US Finds Chinese Solar Module Manufacturers are Evading Tariffs

<p>China has terminated the levy of anti-dumping and countervailing duties on solar grade polysilicon originating from the European Union. The duties were in place since May 2014.</p>
<p>Back then after an investigation it was decided to implement anti-dumping and countervailing measures on imports of solar-grade polysilicon originating from European Union for a period of 2 years. In the investigation, the Chinese Ministry of Commerce had found that the European Union had dumped and down-valued solar grade polysilicon in the Chinese market.</p>
<p>Upon being requested by the domestic industry the Ministry of Commerce starting May 2017, extended implementation period of anti-dumping measures and countervailing measures on European Union imports of solar-grade polysilicon for an 18-month period.</p>
<p>The domestic industry in China was supposed to file a review by October 31, 2018, which it did not file even after being reminded by the Ministry of Commerce. This led to the Ministry of Commerce dropping the plan of initiating another investigation. The Ministry of Commerce terminated the levy of anti-dumping and countervailing duties.</p>
<p>This is bonhomie from the Chinese in response to the European Union removing anti-dumping and anti-subsidy measures put against Chinese solar panels.</p>
<p>Mercom <a href="https://mercomindia.com/chinese-solar-panels-no-add-eu/" target="_blank" rel="noopener">previously reported</a>, the European Union first imposed definitive anti-dumping and anti-subsidy measures in December 2013 for a period of two years. These were then renewed in March 2017 for a period of 18 months. In September, Chinese solar panels were free from anti-dumping and anti-subsidy measures put in place by the EU.</p>
<p>This is good news for Chinese solar component manufacturers as the price of polysilicon could now go down.</p>
<p>However, another major global player, the United States, has <a href="https://mercomindia.com/us-imposes-25-percent-tariff-solar-china/" target="_blank" rel="noopener">announced</a> a 25 percent additional tariff on the import of 279 Chinese products, worth approximately $16 billion. Among these products, solar cells and modules are included under the category “diodes for semiconductor devices, other than light-emitting diodes.”</p>
<p>In India, the office of Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated an <a href="https://mercomindia.com/dgad-anti-dumping-investigation-solar-sheets-imports/" target="_blank" rel="noopener">investigation</a> on import of Ethylene Vinyl Acetate (EVA) sheets for solar modules imported from China PR, Malaysia, Saudi Arabia, South Korea, and Thailand.</p>
<p>In February 2018, Indian solar glass producer Gujarat Borosil <a href="https://mercomindia.com/dgad-anti-dumping-solar-imports-malaysia/" target="_blank" rel="noopener">filed</a> a petition requesting the imposition of an anti-dumping duty on import of textured tempered glass (solar glass), whether coated or uncoated, to India from Malaysia. In <a href="https://mercomindia.com/india-imposes-anti-dumping-duty-tempered-solar-glass-imported-china/" target="_blank" rel="noopener">August 2017</a>, the Indian Ministry of Finance imposed an anti-dumping duty on tempered glass (solar glass) imported from China in the range of $64.04 per metric ton (MT) to $136.21/MT.</p>
<p>While one market has toughened up its stance, another one has just opened its markets.</p>
<p>Image credit: <a href="http://www.openpr.com">www.openpr.com</a></p>


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