Friday, October 21, 2011

Antidumping and Countervailing Duty Investigations of Crystalline Silicon Photovoltaic "Solar" Cells and Panels from China


On October 19, 2011, Solar World Industries America Inc., with the support of the Coalition for American Solar Manufacturing, filed a petition, with the U.S. International Trade Commission and U.S. Department of Commerce, requesting the initiation of antidumping and countervailing duty investigations of crystalline silicon photovoltaic ("CSPV") cells—better known as "solar cells," the building blocks of solar panels—from China.  The petitioner alleges that Chinese companies are dumping CSPVs with margins in excess of 250%.  The petitioner also alleges that Chinese CSPV cell producers and exporters illegally benefited from approximately thirty-nine different government subsidy programs. 

The U.S. International Trade Commission has initiated its investigation into injury to the domestic U.S. CSPV industry.  It will have forty-five days to make its preliminary injury determination.  U.S. importers, producers, and exporters can participate in the U.S. International Trade Commission’s evaluation of whether CSPV imports are injuring the U.S. domestic CSPV industry by filling out and sending in a questionnaire response concerning their production, importation, and sales of CSPVs. 

The U.S. Department of Commerce will evaluate the petition to determine whether it contains sufficient evidence that CSPVs from China are being illegally subsidized and dumped (sold at less than fair value) in the United States.  If the Department of Commerce determines that the petition is sufficient, it will initiate antidumping and countervailing duty investigations twenty days from the date of the filing of the petition.  Once theses investigations are initiated, Chinese exporters will have sixty days to file separate rate applications.  If an exporter does not file a separate rate application, or if the application is rejected, that exporter will be assigned a punitive antidumping duty rate—in this case, likely to be an additional import duty in excess of 232.56%. 

Merchandise covered by these proceedings is classified in the Harmonized Tariff System of the United States ("HTSUS") under subheadings 8501.61.00.00, 8507.20.80, 8541.40.60.20, and 8551.40.60.30.  However, the written description of the scope of these proceedings, as contained in the petition, is dispositive.