Ep276: The Department of Commerce’s New Anti-Dumping Duties
Dec 12, 2024
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Stefan Reisinger, a partner at Norton Rose Fulbright, delves into the new anti-dumping duties on solar panels imported from Southeast Asia. He explains how these duties, prompted by a petition from the American Alliance for Solar Manufacturing, could reshape import costs and practices. The discussion reveals the complexities of tracing supply chains regarding silicon and solar cells. Reisinger also highlights the implications for project developers, including retroactive tariffs and their impact on contract negotiations.
The Department of Commerce has implemented new anti-dumping duties that will financially impact importers of solar panels and cells from Southeast Asia.
Retroactive tariffs on imports from Thailand and Vietnam complicate the supply chain, compelling importers to scrutinize product origins and supplier connections.
Deep dives
New Anti-Dumping Duties on Solar Imports
Recent announcements from the Department of Commerce have established new anti-dumping duties on solar cells and panels imported from Cambodia, Malaysia, Thailand, and Vietnam. This follows a petition raised by the American Alliance for Solar Manufacturing that sought these duties due to identified dumping practices. The preliminary determinations indicate that customs will begin collecting cash deposits from importers based on the calculated dumping margins effective from December 4th. This is a significant shift that adds financial strain on importers as they navigate the implications of these duties.
Retroactive Application of Duties
The announcement includes retroactive dumping duties specifically for imports from Thailand and Vietnam, applying to solar cells and modules dating back to September 5th. This critical circumstances finding necessitates that importers from these countries need to prepare for additional costs incurred during this retroactive period. However, modules manufactured by certain suppliers like JA Solar and JNCO Solar in Vietnam are exempt from these retroactive tariffs. This distinction obliges importers to keenly analyze both the origin of their products and the suppliers involved to ascertain potential tariff liabilities.
Impact on Pricing and Supply Chains
The introduction of anti-dumping duties is expected to exacerbate existing supply chain issues and drive up prices for solar modules in the U.S. Demand for solar imports is already high, and these new tariffs may lead to fewer options and increased costs for domestic developers. Strategies are emerging as manufacturers begin to negotiate new contracts, assessing who will bear the costs of such duties while exploring alternative supply sources to mitigate financial impacts. As a result, urgency is intensifying among procurement teams to secure inventory before any further price hikes.
Stefan Reisinger, Norton Rose Fulbright partner, joins us to discuss the new anti-dumping duties on imported solar panels using cells made in Thailand, Cambodia, Malaysia and Vietnam.
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