US solar makers spot tariff loophole for SE Asian competitors
NEW YORK : US solar manufacturers are asking the US International Trade Commission to quickly address a potential tariff loophole on panel imports from Southeast Asia before a flood of equipment pours into the country.
The commission last week found solar imports from Cambodia, Malaysia, Thailand and Vietnam — which make up the bulk of the US market — were injuring domestic producers. The decision cleared the way for duties ranging from 34% to 3,521% depending on the country and manufacturer involved.
The agency said Tuesday it plans to publish that decision by June 30. But a group representing panel makers contends that if the decision is published after June 2 it risks allowing millions of dollars of equipment to enter the US free of the new duties. The American Alliance for Solar Manufacturing filed a petition to address the issue.
The petition adds a new wrinkle to a years-long effort waged by US-based manufacturers to boost the competitiveness of their equipment.
Already, developers have stored 40 gigawatts to 50 gigawatts of solar panel inventory as of the end of last year in a rush to avoid anticipated duties, according to an estimate from Wood Mackenzie, a research firm.
The trade commission declined to comment on the petition.
Companies including Hanwha Q Cells and First Solar Inc have blamed a surge of discounted imports from Southeast Asia for making it difficult to build and sell equipment domestically, even with tax incentives meant to help drive US manufacturing of advanced energy technology.
The US imported US$12.9 billion in solar equipment last year from the nations, accounting for nearly 80% of total shipments, according to BloombergNEF.
The duties are separate from widespread tariffs imposed by President Donald Trump to address trade imbalances.
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