Imports Surge, U.S. No-shows Anti-circumvention Investigation

Mar 29, 2022

March 25 was the deadline for the U.S. Department of Commerce to respond to Auxin Solar’s petition for an anti-circumvention investigation of photovoltaic cell modules in Southeast Asia. However, the U.S. Department of Commerce missed the appointment.

On March 10, the U.S. Department of Commerce delayed its response to Auxin Solar's petition for an anti-circumvention investigation by half a month, and should issue its final decision on March 25. However, it is unknown whether the conflict between Russia and Ukraine disrupted the rhythm of the U.S. government, or whether the U.S. Department of Commerce could not reach a consensus. Until the press release on this site at noon on March 27, Beijing time, the U.S. Department of Commerce had not announced its final decision.

U.S. solar companies are waiting for a Biden administration to make trade decisions that could disrupt the industry, EENEWS news network reported.

Accompanying the Commerce Department's delay in issuing a decision is a "surge in imports" of U.S. PV products since Auxin Solar filed an anti-circumvention investigation petition, Auxin Solar's lawyers told Commerce Department officials in filings that on March 25 Days before the Commerce Department's deadline to launch a circumvention investigation, a "large amount" of imported CSPV cells and modules is "influxing into the United States." According to information released by the US solar energy industry association SEIA, Auxin Solar, the promoter of the petition, complained to the US Department of Commerce about "market volatility caused by the surge in imports."

SEIA said a few days ago: Auxin Solar is the only company seeking this anti-circumvention investigation petition, and Auxin Solar blatantly attempted to unfairly gain a competitive advantage, causing great damage to other domestic module manufacturers and the entire U.S. solar industry. SEIA believes Auxin Solar's attempts to abuse U.S. trade laws are appalling and their petition must be denied.

The author found that Hanwha Q CELLS, who had been the most active in promoting the 201 tariffs on photovoltaic double-reverse and double-sided modules, also expressed a disapproval of Auxin Solar's petition this time, thinking that it would affect its products in its production base in Malaysia.

Imports from Malaysia, Thailand, Vietnam and Cambodia will be severely hindered if the Ministry of Commerce initiates an anti-circumvention investigation. The reason for imports is that the initiation of this case by the Ministry of Commerce can immediately start imposing tariffs of 50% to 250% for future buyers. Costs create enormous uncertainty. Since 80% of the products in the U.S. photovoltaic market depend on imports, and more than 80% of them are from these countries, U.S. photovoltaic product importers choose to “import and stock up” before the Commerce Department makes a decision.

At present, only Auxin Solar has filed an anti-circumvention investigation petition. Three days ago, the U.S. Department of Commerce just restored 352 tariff exemptions for imported goods from China, including junction boxes in photovoltaic products. Two days ago, the U.S. The Ministry of Commerce has re-examined the double-reverse tariffs on some portable solar products.

Under the Russia-Ukraine conflict, the United States has a clear trend of wanting to ease trade with China, and the US Department of Commerce may reject the petition for an anti-circumvention investigation; and if an anti-circumvention investigation is implemented, it will bring huge costs to the US photovoltaic market and renewable energy targets. On the other hand, the U.S. government is extremely uncomfortable with China’s position and attitude, and it is difficult to solve its annoyance without investigating. Is this arrangement the reason why the U.S. Department of Commerce has been delayed in announcing its final decision.