US Commerce Department Initiates Antidumping and Countervailing Duty Probes into Solar Cell Imports
On May 14, 2024, in response to a petition by several producers of silicon photovoltaic solar modules, the US Department of Commerce (the “Department” or “Commerce”) initiated antidumping (“AD”) and countervailing duty (“CVD”) investigations of solar cells, whether or not assembled into modules, from Cambodia, Malaysia, Thailand, and the Socialist Republic of Vietnam. Meanwhile, the US International Trade Commission (“ITC”) began its preliminary investigation on April 24, 2024, to determine whether there is a reasonable basis to believe or suspect that the US industry has been materially injured or threatened with a material injury by reason of imports of solar cells and modules from the four Southeast Asian countries.
The petitioner is the American Alliance of Solar Manufacturing Trade Committee, which is comprised of several US producers of solar cells and modules. They allege that Chinese companies with factories in Malaysia, Cambodia, Vietnam, and Thailand, as well as other producers in those countries, have flooded the US market with solar cells priced below their cost of production, causing US prices to collapse by more than 50% and threatening US-made products.
If the ITC preliminarily determines there is a reasonable indication that the US industry has been materially injured or threatened with a material injury, then Commerce will proceed with its preliminary determinations as to whether solar cells and modules from Cambodia, Malaysia, Vietnam, or Thailand are “being sold, or are likely to be sold,” at less-than-fair value (i.e., dumped) in the United States, and “whether a countervailable subsidy is being provided with respect to” those solar cells and modules.1 If Commerce issues an affirmative preliminary determination in either the AD or the CVD case, it will instruct US Customs and Border Protection (“CBP”) to begin suspending entries and collecting AD/CVD cash deposits (i.e., provisional measures) at the preliminarily determined rate of dumping or subsidization, which may be applied retroactively for up to 90 days.
The ITC’s preliminary determination is scheduled to be released on June 10, 2024. The Department’s preliminary determinations are scheduled to be released July 18, 2024, for its CVD investigation and October 1, 2024, for its AD investigation, although both deadlines may be extended by 65 and 50 days, respectively.2 If both the ITC and the Department make a affirmative preliminary determination, then both will commence their final investigations in due course.
If both the Commerce Department and ITC’s final determinations are affirmative, Commerce will issue an AD or CVD Order, as appropriate, and will instruct CBP to continue suspension of liquidation and collection of cash deposits at the rate(s) determined in the final determinations. It usually takes about 1.5 years after the filing of the AD/CVD petition for an AD/CVD order to be put in place.
Interested parties should continue to monitor the investigations as they progress. Members of our global Trade team can assist with any questions you have or issues you are facing around this matter.
1 19 U.S.C. §§ 1671, 1673; https://www.usitc.gov/trade_remedy/documents/handbook.pdf.
