The moratorium on duties and tariff enforcement for Chinese-origin solar imports from Cambodia, Malaysia, Thailand and Vietnam found to be circumventing U.S. trade law expires tomorrow, Thursday, June 6th. In 2023, the Commerce Department determined that several Chinese manufacturers were indeed bypassing trade regulations by routing imports through four countries in Southeast Asia. However, in 2022, President Biden issued by proclamation an unprecedented moratorium on tariffs for circumvented products, which stipulated that regardless of an affirmative finding of circumvention, no duties would be imposed on the circumventing imports until June 6, 2024. During this period, the affected companies have successfully relocated their supply chains to produce non-circumventing solar products in the Southeast Asian countries. Below is a statement from Tim Brightbill, lead counsel for The American Alliance for Solar Manufacturing Trade Committee
“The circumvention investigation, and the industry’s response to it, followed the same pattern we’ve seen with many solar trade cases against Chinese-owned companies: They deny the allegations, predict disaster if tariffs are imposed, and then quickly adjust their operations to avoid duties. Given two years to adjust, companies in Vietnam, Malaysia, Thailand and Cambodia did just that. First, they proceeded to dump their products in our markets and harm our workers. Second, they moved additional manufacturing to these four countries, which is what makes our new AD/CVD cases so important. As a result, with more than 40 GW of new wafer capacity built in Southeast Asia in recent years to avoid the circumvention ruling, we expect the end of this moratorium to have a relatively small impact on leveling the playing field for our domestic industry.
“The AD/CVD petition we filed comes at a crucial moment for the American solar industry. It is more important than ever that investigators follow the facts and enforce our trade laws. Our ability to create jobs and strengthen U.S. manufacturing, achieve our climate goals, and secure our energy future depend on it.”