US solar makers see tariff loophole for Asian competitors

[SAN FRANCISCO] US solar manufacturers are asking the US International Trade Commission to quickly address a potential tariff loophole on panel imports from South-east 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 per cent to 3,521 per cent depending on the country and manufacturer involved.

The agency said on Tuesday (May 27) it plans to publish that decision by Jun 30. But a group representing panel makers contends that if the decision is published after Jun 2 it risks allowing millions of US 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 to 50 gigawatts of solar panel inventory as at 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 have blamed a surge of discounted imports from South-east 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 per cent of total shipments, according to BloombergNEF.

The duties are separate from widespread tariffs imposed by US President Donald Trump to address trade imbalances. BLOOMBERG