November 17, 2022
With the Inflation Reduction Act celebrations over, the solar business is again to specializing in the anti-circumvention commerce case. The deadline is approaching for a call from the Department of Commerce, and greater than 240 solar and storage corporations are imploring Secretary Gina Raimondo to reject the petition for brand new anti-circumvention tariffs on solar merchandise.
Commerce should make its preliminary willpower in Auxin Solar’s anti-circumvention case by December 1, and the businesses on this letter are making clear that an affirmative willpower just isn’t justified and can as soon as once more stifle America’s potential to deploy clear energy.
Yes, President Biden did waive any new tariffs from this area for a 24-month interval, wielding Section 318(a) of the Tariff Act of 1930 to create a protected harbor. The certainty helps, however a discovering of circumvention can be one other complication for future PV module imports, a lot of that are already being detained on the border because of the Uyghur Forced Labor Protection Act.
“President Biden took a crucial near-term step over the summer to free up a gridlocked solar supply chain, but companies won’t be able to capitalize on the administration’s landmark climate policy if this baseless case isn’t thrown out,” stated Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA). “The Inflation Reduction Act has launched a steady stream of manufacturing investments in the United States, but more tariffs will only undermine this success.”
The U.S. solar and storage business stays agency that the case lacks authorized advantage primarily based on the truth that solar cell and module manufacturing requires specialised tools and is an intensive course of, and the usual in a case like that is the substantial transformation of a brand new product. Because of the numerous and main manufacturing work finished within the Southeast Asian international locations named within the investigation, the case doesn’t meet the usual for circumvention.
As we’ve written beforehand — there’s already precedent of Commerce deciding cell manufacturing just isn’t minor or insignificant.
“In addition to the 2012 AD/CVD case, Commerce has taken the position in subsequent scope rulings that the p/n junction constitutes the essential characteristic of solar cells,” based on Lynn Kamarck, International Trade Counsel with McDermott Will & Emery, citing the “SunSpark Scope Ruling Memo” on Oct. 23, 2020. In this, the place is taken that “solar cells produced in Vietnam from raw wafers imported from China are not subject to the scope of the orders because the raw wafers from China did not include a p/n junction,” she says. In one other memorandum, “ET Solar Scope Ruling Memo,” on June 15, 2021, solar cells produced in Vietnam had been deemed throughout the scope of the order as a result of the wafers already had a p/n junction earlier than export.
“If it’s basically raw materials coming from China — wafers, wires, etc., and there’s a lot of value add, and, in effect transformation taking place, then that’s pretty strong evidence of no circumvention,” says Mark Herlach, with Eversheds Sutherland. “But that could vary from plant to plant and manufacturer to manufacturer. If it turns out the vast majority of work is still being done in China, then that’s a going to be a problem for the respondents.”
Here’s extra on how substantial a solar cell is.
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Tags: AD/CVD, SEIA, tariffs