China and Taiwan Solar Products: Prelim AD Cash Deposit Rates Take Effect
The Commerce Department made a preliminary affirmative antidumping determination that crystalline silicon photovoltaic products from China (A-570-010) and Taiwan (A-583-853) are being sold in the U.S. at less than fair value. As a result, Commerce will impose AD duty cash deposit requirements on shipments of subject merchandise from the two countries entered on or after July 31. Commerce also set certification requirements for some importers claiming their product is not subject to duties.
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Commerce set countervailing duty cash deposit requirements and suspended liquidation for Chinese solar products in June (see 14060914). In a separate notice issued alongside its preliminary AD duty determinations (here), Commerce said it intends to issue its final CV duty determination at the same time that it issues its final AD duty determinations, currently set for mid-December.
Controversial Scope Still Under Consideration
Domestic industry requested this investigation to close a purported "loophole" in AD/CV duties already in place for solar cells from China. They said Chinese exporters got around those duties by assembling solar panels in China from cells fully or partially made in Taiwan. The current scope of duties is meant to close the "loophole" by including "modules, laminates and/or panels assembled in the subject country consisting of crystalline silicon photovoltaic cells that are completed or partially manufactured within a customs territory other than that subject country, using ingots that are manufactured in the subject country, wafers that are manufactured in the subject country, or cells where the manufacturing process begins in the subject country and is completed in a non-subject country." The inclusion of merchandise from third-countries is a topic of controversy, and Commerce says it is still considering the issue.
AD Suspension of Liquidation and Cash Deposit Requirements
Commerce will instruct CBP to suspend liquidation for all entries of subject merchandise from China or Taiwan that is entered, or withdrawn from warehouse, for consumption on or after July 31 (liquidation is already suspended for China merchandise for CV duty purposes).
China
The preliminary AD cash deposit rates for Chinese companies are as follows:
| Exporter | AD Rate |
|---|---|
| Changzhou Trina Solar Energy Co., Ltd./Trina Solar (Changzhou) Science & Technology Co., Ltd. | 26.33% |
| Renesola Jiangsu Ltd./Renesola Zhejiang Ltd./Jinko Solar Co. Ltd./Jinko Solar Import and Export Co., Ltd. | 58.87% |
| Average rate for 42 other producer-exporter combinations | 42.33% |
| China-wide rate | 165.04 |
Average rate companies. Commerce assigned an average rate to 42 producer-exporter combinations that proved independence from Chinese government control but weren't individually reviewed. See the notice for a full list of companies subject to the 42.33% rate.
Adjustment for export subsidies. Commerce says it will adjust AD duty cash deposit rates downward for Chinese companies to account for export subsidies preliminarily found in the agency's concurrent CV duty investigation on China.
Taiwan
Preliminary AD cash deposit requirements for Taiwanese companies are as follows:
| Producer or Exporter | AD Rate |
|---|---|
| Motech Industries, Inc. | 44.18% |
| Gintech Energy Corporation | 27.59% |
| All Others | 35.89% |
Certification Requirements
Any importers of solar products assembled in China or Taiwan that claim the merchandise is not subject to the duties because it is made from third-country solar cells that do not contain solar cells manufactured in third countries using ingots, wafers, or partially produced solar cells manufactured in China or Taiwan will be required to maintain a certification in order to avoid paying cash deposits. If the importer is located in China or Taiwan both the importer and exporter will have to maintain certifications. Importers and China or Taiwan exporters are also required to maintain documentation backing up their certifications, although they won't have to provide the certifications to CBP as part of the entry process.
For any entries where certification requirements are not met, Commerce will instruct CBP to suspend liquidation and require cash deposits. For mixed panels containing some China- or Taiwan- origin cells, if an importer is unable or unwilling to identify the value of product subject to duties, liquidation of the entire entry will be suspended and cash deposits will be required.
(The period of investigation for China is 04/01/13 - 09/30/13, and for Taiwan is 10/01/12 - 09/30/13. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 14012811 for summary of initiation of this investigation, and 14010301 for the underlying petition.)
AD/CVD Operations contact -- Taiwan: Magd Zalok (202) 482-4162; China: Jeffrey Pedersen (202) 482-2769
The Federal Register notice for China is (here).
The Federal Register notice for Taiwan is (here).
(Federal Register 07/31/14)