Post date: 21/08/2023 - 13:18 The U.S. Department of Commerce (DoC) on Friday (Aug. 18) announced its final decision in the investigation into imports of solar modules from Cambodia, Malaysia, Thailand and Vietnam. In February 2022, Auxin Solar LLC, a very small solar module manufacturer based in San Jose, California, had requested the DoC to conduct the investigation, which was then officially launched the following December. The investigation was based on the suspicion that Chinese companies or companies producing in China were merely carrying out subordinate processing or sales steps in the four countries mentioned in order to circumvent the import restrictions imposed by the US government on solar products from China.
The DoC has now concluded that this is the case for five of the eight companies investigated: BYD Hong Kong, New East Solar, Canadian Solar, Trina Solar, and Vina Solar. No circumvention was found at Hanwha Q Cells, Jinko Solar, and Boviet Solar. Furthermore, the DoC also found circumvention at unnamed companies that were not specifically the subject of the investigations. For now, the finding has no concrete impact, as an executive order from President Joe Biden has suspended the punitive tariffs on imports from the four countries until June 2024. Therefore, according to the DoC's assessment, importers of solar modules also have »sufficient time to adjust supply chains and ensure that sourcing is not occurring from companies found to be violating U.S. law.«
The U.S. Solar Industries Association (SEIA) has a completely different take on the situation: »The U.S. Department of Commerce is out of step with the administration’s clean energy goals, and we fundamentally disagree with their decision,« it says in a statement. The accusations made by Auxin Solar were »meritless from the beginning,« and the investigation had unsettled the market: »The final affirmative determinations only perpetuate current supply problems, given the lack of adequate domestic supply of cells and modules.«
While the country is experiencing a »$20 billion solar manufacturing renaissance« due to the incentives provided by the Inflation Reduction Act (IRA), »it will take at least three to five years to ramp up domestic solar manufacturing capacity«, SEIA said. That's why the global supply chain »will be vital in the short-term.« The renewable energy industry association ACORE (American Council on Renewable Energy) also sharply criticized the DoC decision, saying it »directly undermines Biden administration efforts to accelerate the deployment of renewable energy and address climate change.«
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