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6 December 2022

Commerce Department Releases Preliminary Findings: Solar-Cell Manufacturers Circumvented US Tariffs

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Brown Rudnick LLP

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The Commerce Department released preliminary findings that four Chinese solar-cell manufacturers circumvented U.S. tariffs.
United States Energy and Natural Resources
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The Commerce Department released preliminary findings that four Chinese solar-cell manufacturers circumvented U.S. tariffs. However, there will be no immediate increase in solar tariffs because President Biden, after the investigation was announced, utilized emergency powers under the Tariff Act of 1930 to exempt solar imports from new antidumping and countervailing duties - for a period of 24 months. Many solar industry advocates have stressed that this is not enough time.

Accordingly, this preliminary ruling is likely to accelerate the mad dash to find new suppliers and may have a significant impact on the solar supply chain - both domestically and internationally.

Import compliance for solar components is already in a heightened state of risk due to forced labor concerns. It is critical that companies ensure tariff and other import compliance factors are built into their procurement programs and accounted for in all forms of energy commercial contracting.

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