Sun Sets on Solar Panel Trade Dispute

2018-08-07T14:29:24+00:00November 15th, 2017|Customs, Import, Industry Spotlight|

The United States International Trade Commission (ITC) submitted tariff recommendations regarding foreign imports of solar products after a September hearing petitioned against growing harm to domestic solar panel industry. The petitioner, a Georgia-based panel manufacturer majority-owned by a Chinese company, filed complaint against cheap, subsidized solar panel imports that drove them into Chapter 11 bankruptcy as domestic industry marketshare diminished.

In efforts to counteract the imbalance, ITC officials proposed import tariffs on solar panels up to 35 percent. The agency submitted it’s recommendations to the President on Monday, November 13th. Proposals under review include limitations to specific materials such as crystalline silicon cells, the electricity-producing component of solar panels.

The tariff proposals were significantly lower than what was anticipated by both large U.S. manufacturer plaintiffs.  The domestic suppliers expressed concern that the solution would not be sufficient enough to resolve the problem.

Imported panels for large solar farms are still expected to remain at 32 cents per watt in the United States. The percentages suggested by the ITC are expected to add 10-11 cents per watt. Producers expect the tariff to revert costs to summer 2016 prices.

Summary of Recommendations:

  • Restrict imports of cells, modules, and photovoltaic products to 9 gigawatts in the first year
    1. 1.4 gigawatt increase annually
    2. possible auctioning of licenses
  • 30 percent on tariff on imports of solar cells and modules more than 1 gigawatt
    1. will gradually be lowered annually
  • 10 percent tariff on the first 5 gigawatts of cells imported, and a 30 percent tariff on exceeding volumes; 35 percent tariff on modules
    1. will gradually reduce over 4 years

The President has 60 days to make the final decision with plans to visit China in the next week to discuss security and trade issues.

As always, Green Worldwide Shipping is proud to deliver regulatory compliance guidance for the international shipping community.

For more information on this case, contact Rex Sherman, Vice President, LAX Branch Manager, CHB, at [email protected].

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