New Antidumping and Countervailing Duty Petitions on Solar Cells and Modules from Cambodia, Malaysia, Thailand and Vietnam

Introduction

On April 24, 2024, a group of domestic producers of crystalline silicon photovoltaic (CSPV) solar cells and modules filed a petition with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) seeking the imposition of antidumping and countervailing duties (AD/CVD duties) on imports of CSPV cells and modules from Cambodia, Malaysia, Thailand and Vietnam. The petitioning group (hereinafter Petitioner) is the American Alliance for Solar Manufacturing Trade Committee, an ad hoc coalition that consists of four members: Convalt Energy; First Solar, Inc.; Hanwha QCELLS USA, Inc.; and Mission Solar Energy LLC. Hanwha QCELLS and First Solar have manufacturing facilities in the United States but are also listed importers of these products and have affiliates who produce in the targeted countries. Meyer Burger (Americas) Ltd., REC Silicon and Swift Solar are listed as domestic producers that support the petition.

Petitioner alleges that imports into the United States of CSPV cells and modules from the four subject countries have increased over the past few years by over 100%. The petition follows multiple trade cases against CSPV cells or modules: two AD/CVD cases against China in 2011 (Solar I) and 2013 (Solar II), a global safeguard investigation in 2017 and circumvention inquiries against imports from the same four Southeast Asian countries. In the circumvention inquiries, DOC determined that producers in the targeted countries avoided AD/CVD duties on imports by moving production outside of China.

Under U.S. law, a domestic industry (including workers in that industry) may petition for the government to initiate an AD investigation into the pricing of an imported product to determine whether it is sold in the United States at less than fair value (i.e., “dumped”). A domestic industry may also petition for the initiation of an investigation of alleged countervailable subsidies provided by a foreign government to producers and exporters of the subject merchandise. DOC will impose AD and/or CVD duties on a product if it determines that imports of that product are dumped and/or subsidized, and if the ITC also determines that the domestic industry is materially injured or threatened with such injury by reason of imports of that product.

If the ITC and DOC make preliminary affirmative determinations, U.S. importers will be required to post cash deposits in the amount of the AD and/or CVD duties for all entries of the subject merchandise entered on or after the date of publication of DOC’s preliminary determinations. The preliminary AD/CVD rates can change in the final DOC determinations, following further factual investigation, verification and briefing.

Scope

Petitioner has identified the following product scope for the investigations:

The merchandise covered by these investigations is crystalline silicon photovoltaic cells, and modules, laminates, and panels, consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including, but not limited to, modules, laminates, panels and building integrated materials.

These investigations cover crystalline silicon photovoltaic cells of thickness equal to or greater than 20 micrometers, having a p/n junction formed by any means, whether or not the cell has undergone other processing, including, but not limited to, cleaning, etching, coating, and/or addition of materials (including, but not limited to, metallization and conductor patterns) to collect and forward the electricity that is generated by the cell.

Merchandise under consideration may be described at the time of importation as parts for final finished products that are assembled after importation, including, but not limited to, modules, laminates, panels, building-integrated modules, building-integrated panels, or other finished goods kits. Such parts that otherwise meet the definition of merchandise under consideration are included in the scope of the investigations.

The petition further explains that:

Subject merchandise includes products meeting the physical description set forth in the scope language, regardless of the manufacturing technology utilized (e.g., tunnel oxide passivated contact (“TOPCon”), passivated emitter and rear cell (“PERC”)). So-called “hybrid” c- Si PVcells and modules that also contain a layer of thin film are covered by the scope, consistent with the Department’s scope rulings in the Solar I China case. Tandem solar cells consisting of crystalline silicon and perovskite or other cell material, including but not limited to those produced in serial fashion or by mechanical stacking, are also covered. Also consistent with the Department’s Solar I scope rulings, c- Si PVcells are created once a wafer is doped and a positive/negative (“p/n”) junction is created.

Additionally,

Modules, laminates, and panels produced in a third-country from cells produced in a subject country are covered by the investigations; however, modules, laminates, and panels produced in a subject country from cells produced in a third-country are not covered by the investigations.

There are several exclusions listed in the petition’s detailed scope description, which can be found in Attachment 1.

Foreign Producers and Exporters of Subject Merchandise

A list of foreign producers and exporters of CSPV cells and modules, as identified in the petition, is provided in Attachment 2. 

U.S. Importers of Subject Merchandise

A list of U.S. importers of CSPV cells and modules, as identified in the petition, is provided in Attachment 3.

Alleged Margins of Dumping/Subsidization

Petitioner alleged the following dumping margins:

These are merely estimates based on the Petitioner’s choice of data to include in the petition, and rarely reflect the actual level of dumping. But DOC generally assigns duties at these alleged dumping rates to foreign producers and exporters that fail to cooperate with the investigation.   

No specific subsidy rates are included in the petition.

Potential Trade Impact

According to official U.S. import statistics, imports of the subject merchandise totaled 36.4 GW or $12.3 billion in 2023, representing approximately 80 percent of all imports of CSPV cells and modules.  In terms of trade value, we believe this is the largest case ever filed under U.S. AD/CVD laws.   

Estimated Schedule of Investigations

No Allegation of Critical Circumstances

If made, an allegation of critical circumstances would permit DOC to impose duty deposits retroactively to 90 days prior to DOC’s preliminary AD and/or CVD determinations, the purpose of which is to dissuade a surge in imports while the investigation is pending. No such allegation was made in the petition, but can be made later during the course of the investigations. Ultimately, before any final duties are owed for that retroactive period, both DOC and ITC must reach affirmative critical circumstances findings.