US CVD announcement against Chinese manufacturers
The USA Department of Commerce has announced its preliminary determination in the countervailing duty (CVD) investigation of imports of certain crystalline silicon photovoltaic products from the People's Republic of China (China).
A preliminary subsidy rate of 18.56 % was set for mandatory respondents Trina Solar (Changzhou) whilst Wuxi Suntech and five of its affiliates were hit with the highest rate of 35.21%. All other producers/exporters in China have been assigned a preliminary subsidy rate of 26.89 percent. The rates come into effect immediately with final decisions expected in August. The commission will also provide a preliminary rule on anti-dumping that has expanded to include Taiwan.
The information provided by the Department of Commerce states that the Government of China failed to respond completely to certain questions, and therefore adverse facts were assumed in determining that certain subsidy programs were countervailable. As a result of the preliminary affirmative determination, Commerce will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary rates.
The lead petitioner for this investigation is once again SolarWorld America and not surprisingly praised the announcement stating state-sponsored Chinese solar producers have been evading U.S. duties on solar panels by outsourcing production of photovoltaic cells to third countries, such as Taiwan.
"Today is a strong win for the U.S. solar industry," said Mukesh Dulani, president of SolarWorld Industries America Inc., based in Hillsboro. "We look forward to the end of illegal Chinese government intervention in the U.S. solar market, and we applaud Commerce for its work that supports fair trade."
In late 2012, the U.S. crystalline silicon solar manufacturing industry won duties averaging 31% to offset government subsidies that enabled Chinese producers to sell at prices lower than their American counterparts. .SolarWorld claims that Chinese producers evaded duties by commissioning manufacturers in other countries to partially or fully produce solar photovoltaic cells for assembly in solar panels back in China. SolarWorld stated it began cases following Chinese media comments that suggested at least 70 percent of U.S. imports from China contain Taiwanese cells. SolarWorld's trade petitions cover panels assembled in China from Taiwanese or third-country cells made from Chinese inputs.
Yingli Green Energy also commented on the preliminary CVD tariff decision by the U.S. Department of Commerce. According to the decision, Yingli Green Energy will be considered part of the Separate Rates Group and will be subject to a preliminary anti-subsidy tariff of 26.89% on certain PV solar module imports.
"Today's decision will unfortunately make solar power more expensive for American consumers, and diminish opportunities for tens of thousands of U.S. solar jobs that we have helped to create. We will continue to fight this petition and defend ourselves, alongside the majority of the U.S. solar industry," said Robert Petrina, Managing Director of Yingli Green Energy Americas, Inc., the Company's operating subsidiary in the U.S. "We have fully cooperated throughout this investigation and have prepared ourselves for today's outcome, given the highly politicized nature of this case. We remain dedicated to the U.S. solar market and will continue to support our customers and projects."
No final tariff decisions will be made until the International Trade Commission completes its investigation as well, which is scheduled to occur before the end of 2014.
"As we have witnessed globally now, tariffs are not the answer to driving affordable solar energy," said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "We support international trade and fair competition and hope that those will prevail at the end of this dispute."