US Commerce Dept Confirms Anti-dumping Duties on China, Solar Products, Taiwan Roped in

The US Commerce Department confirmed preliminary anti-dumping duties on certain Chinese and Taiwanese solar products last Friday, 25 July. The move, coming just weeks after the government agency announced anti-subsidy duties on such products in a separate probe, has drawn a harsh rebuke from Beijing and is expected to worsen long-running tensions between the two sides on renewable energy trade.

The probe was launched in January, and specifically covers crystalline silicon photovoltaic (PV) cells, and the modules, laminates, and/or panels that use them. The US agency began the investigation following a petition by the American branch of SolarWorld Industries, which had claimed that Chinese producers were skirting an existing set of duties on these goods.

SolarWorld had alleged that, in order to avoid the duties already in place, Chinese producers were using cells made abroad, primarily from Taiwan, in their production processes.

According to the US Commerce Department, the preliminary dumping margins for Chinese producers are set at rates between 26.33 to 58.87 percent, depending on the producer. The China-wide entity, meanwhile, received a preliminary dumping margin of 165.04 percent. Taiwanese producers received dumping margins between 27.59 percent and 44.18 percent.

The cash deposits that will be collected by customs officials on the Chinese goods are lower than these dumping margins, Commerce said, in order to adjust for the export and domestic subsidies that were found in the US agency’s separate countervailing duty investigation.

Under the latter countervailing duty probe, Chinese producers are facing preliminary duties of 18.56 to 32.51 percent. A final determination in that investigation is expected from Commerce by mid-August, unless a decision is made to extend the deadline.

A negotiated solution was reached in a similar row between the EU and China last year. However, European solar industry groups have since claimed that Chinese producers are violating the terms of the settlement, known as a “price undertaking” agreement, with EU officials now in the process of reviewing those claims.

Under the terms of the EU deal, participating Chinese exporters can export up to 7 gigawatts of solar products to the EU at a price of at least 53 cents per watt. While the US was reportedly involved in the original discussions for such an arrangement, it did not take part in the final deal.

Final results due date

The final determinations are expected by 15 December of this year, Commerce said. Should those final determinations indicate dumping, the International Trade Commission (USITC) – another agency that is involved in US trade remedy investigations – will then examine whether such imports materially injure, or threaten to injure, US industry.

The deadline for the latter probe is 29 January 2015. If injury is found by USITC, then final anti-dumping orders will be issued. Otherwise, no duties will be applied.