The U.S. Department of Commerce (Department of Commerce) has finalized proposed regulations (final rules) to implement Presidential Proclamation 10414, exempting cells and modules imported from Southeast Asia from anti-circumvention or anti-dumping duties and adding new scope.
Exemption from import duties for two years
It is understood that the release of the final rule is in response to the anti-circumvention proposed by the California photovoltaic module manufacturer Auxin Solar. In March 2022, after receiving multiple petitions, the U.S. Department of Commerce finally decided to start the Chinese photovoltaic module manufacturer. Part of the manufacturing business Moved to Southeast Asia to circumvent anti-dumping and countervailing duty investigations.
On June 6, 2022, the President of the United States signed Proclamation No. 10414, exempting crystalline silicon photovoltaic cells and modules from Thailand, Vietnam, Malaysia, and Cambodia that are partially or fully assembled and exported to the United States for two years.
On July 1, 2022, the Department of Commerce released proposed rules implementing Presidential Proclamation 10414, with a public comment deadline of August 1, 2022. A total of 16 comments were submitted, of which 11 were generally in favour of the proposed rule and 5 were generally opposed.
Added 180-day limited use conditions
The final rule to be implemented this time introduces a new condition that in order to qualify for this exemption, cells and modules completed in Southeast Asia “must be in use in the U.S. by the expiration date,” i.e., installation must be completed within 180 days of the termination date. . That is, assuming the exemption ends on June 6, 2024, battery modules completed in Southeast Asia must be used by December 3, 2024.
The "Final Rule" provides that anti-dumping and countervailing duties will not be levied on Southeast Asian cells and modules entering the U.S. prior to the termination date if circumvention is determined.
The rule does not apply to PV cells and modules manufactured and exported from China and is subject to China's existing anti-dumping and countervailing duties on PV cells and modules.
U.S. PV modules are seriously short
The Commerce Department said the announcement required immediate action to ensure an adequate supply of PV modules to meet U.S. electricity generation needs.
The U.S. PV module market is heavily dependent on imports. According to statistics, the United States has only 5GW of crystalline silicon module manufacturing capacity, and about 2.5GW of thin-film module manufacturing capacity. Among the import sources, although only less than 5% are from China, more than 80% of the products come from Southeast Asia, where Chinese photovoltaic companies have established factories.