The United States Department of Commerce (DOC) recently announced on March 28, 2022, the initiation of an anti-dumping and anti-subsidy tax evasion investigation with solar panels imported from 4 Southeast Asia countries that are Vietnam, Thailand, Malaysia, and Cambodia. Immediately after, on March 30, 2022, the DOC sent the Quantity & Value Questionnaires to Vietnamese exporters to collect information related to the anti-dumping and anti-subsidy tax evasion investigation with solar panels from Vietnam.
The products allegedly under investigation are crystalline silicon photovoltaic cells and modules (CSPV), mainly under HS codes: 8501.71, 8501.72, 8501.80, 8507.20, 8541.42, and 8541.43.
The DOC accused Vietnam of evading anti-dumping and anti-subsidy taxes that the United States is applying to products imported from China.
Specifically, Vietnam is accused of importing starting materials (silicon wafers) from China, processing, assembling, and making “insignificant changes” to produce photovoltaic cells and modules for export to the United States.
Currently, China’s solar panels are being subject to anti-dumping taxes from 15.85% to 238.95% by the United States and anti-subsidy taxes from 11.97% to 15.24%.
The US Department of Commerce (DOC) initiated the investigation based on a complaint filed by a group of US energy producers, known as American Solar Manufacturers Against Chinese Circumvention (A-SMACC). The plaintiffs accused Vietnamese enterprises of evading anti-dumping and anti-subsidy taxes that the United States is applying to solar panels products imported from China.
The United States issues a Questionnaire on Quantity and Value
After initiating the investigation, on March 30, 2022, the DOC sent Quantity & Value Questionnaires to Vietnamese exporters to collect information, and assess the quantity and export value of US businesses.
The results of these questionnaires will be used as the basis for the selection of mandatory respondents in the investigation case. Once a required respondent is identified, the DOC will issue follow-up questionnaires.
The deadline to respond to the Quantity and Value questionnaire is 5:00 p.m. (US time) on April 20, 2022.
Accordingly, Vietnamese businesses involved in the case need to actively coordinate and cooperate closely with the US investigative agency and participate in answering the questionnaire because voluntarily participating in the spirit of goodwill, and mutual cooperation will have a direct impact on the outcome of the case.
In the event that enterprises do not participate in answering the questionnaire or do not cooperate with the investigation, they may be subject to unfavorable tax rates.
To view the detailed content of the questionnaire, businesses can visit the DOC website: http://access.trade.gov, or contact the Trade Protection Department to receive the questionnaire.
In the event that, for objective reasons, the enterprise considers that it is not possible to complete and submit the questionnaire response on time, it may request an extension of the time to respond by submitting a Letter of Request for Extension to the DOC, clearly explain the reason and propose an extension time.
In Vietnam, the Ministry of Industry and Trade has repeatedly warned businesses about the risk involving solar panels products, even putting this item on the early warning list of items at risk of being investigated by foreign countries.
Accordingly, for the investigation of anti-dumping and anti-subsidy tax evasion with solar panels imported from Vietnam, businesses need to actively participate in cooperation and answer questionnaires from DOC, provide complete information, on time, and in the right format.
If the businesses encounter any difficulties during the process, they can contact the Trade Remedies Department to receive more information, guidance, and advice.
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.