New Investigations Commenced to Impose AD and CVD Duties
on Solar Cells and Panels from China and Taiwan


March 10, 2014

On January 29, 2014, the U.S. Department of Commerce published a notice in the Federal Register (79 FR 4661 and 4667), announcing that new antidumping (AD) and countervailing duty (CVD) investigations have been launched to possibly impose AD and CVD duties on solar cells and panels from China and Taiwan.  Although there are already established AD and CVD orders for solar cells from China, the petition expands the scope of the AD and CVD existing order on solar cells and panels from China and Taiwan.  The period of the investigation is from January 1, 2012 to December 31, 2012.

The scope description in the investigations includes solar cell modules, laminates, or panels that use ingots or wafers made in China or Taiwan, or cells where the solar cell manufacturing process begins in China or Taiwan and is completed in a third country.  This scope language is currently not included in the existing AD and CVD orders.

Commerce’s preliminary findings are due March 28, 2014 for the CVD investigations, and June 11, 2014 for the AD investigations.  These due dates, however, may be extended.  Commerce will make a preliminary conclusion as to whether there exists dumping or countervailable subsidies for the solar cells or panels in issue.  If Commerce's findings are "affirmative," meaning that Commerce has preliminarily determined that there exists dumping and/or countervailable subsidies, importers will be required to post cash deposits of AD and CVD duties effective for all in‑scope solar cells and panels imported from China or Taiwan on or after the date published in the Federal Register.  Importers at this date of publication will be required to post a cash deposit or a bond for the payment of estimated AD/CVD determined owing based on the published preliminary margins.  After a final determination is precluded on the Federal Register, a cash deposit must be posted.

If AD and CVD orders are eventually established, importers who are claiming that their imported solar cells are totally produced outside of China or Taiwan may be issued Requests for Information (Form 28) from U.S. Customs to provide documentation that substantiates the cells were not made in China or Taiwan.  Usually, the information needed to respond to a Form 28 of this type is extensive.  Such documentation may include purchase orders for the input materials, inventory records, production records, bills of lading, proof of payment, etc., down to the serial number of the cells.  If Customs determines that the importer has not provided adequate or complete documentation, Customs can assess the country-wide or all-others rate against the entry.  Thus, the failure to adequately respond to the Form 28 could result in the assessment of substantial AD and CVD duties.

Alternatively, importers may provide this information to the import specialist at the port of entry or to a CEE if the company is a CEE member.

We recommend that companies who claim the solar cells and panels are not subject to the investigation verify the source of the solar cells and panels at this time.

If you have any questions with regard to this newsletter or any other antidumping or countervailing matter, please do not hesitate to contact Steve Spraitzar at steve.spraitzar@tuttlelaw.com or at (415) 288-0427.

Steve Spraitzar is a senior attorney with the Law Offices of George R. Tuttle in San Francisco, California.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2014 by Tuttle Law Offices. 

All rights reserved.  Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

 

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