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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.
The goods subject to investigation are crystalline silicon photovoltaic cells and modules (CSPV) with HS codes: 8501.71, 8501.72, 8501.80, 8507.20, 8541.42, and 8541.43.
The US Department of Commerce (DOC) initiated an investigation based on a complaint filed by a coalition of US energy producers, called the American Solar Manufacturers Against Chinese Circumvention (A-SMACC). Specifically, the plaintiffs accused Vietnamese enterprises of evading anti-dumping and anti-subsidy taxes that the United States is applying to solar battery products imported from China.
In the denunciation, the enterprises of these 4 countries are said to have done the following steps to evade anti-dumping and anti-subsidy taxes:
- First, the defendants are accused of importing starting materials (silicon wafers) from China;
- They then fabricate, assemble, and make “negligible changes” to produce photovoltaic cells and modules;
- Finally, they export the above items to the US to avoid anti-dumping and anti-subsidy taxes.
Anti-dumping and anti-subsidy tax evasion with solar panels imported from Vietnam
Currently, China’s solar panel products 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%.
It is known that this is not the first time that the United States has taken strong action against anti-dumping and anti-subsidy tax evasion with solar batteries.
In February 2022, the United States extended the application of a global safeguard measure with solar cells with HS codes 8541.40.6015 and 8541.40.6025 for another four years (2022-2026) in the form of tariff quotas with the applicable tax rate of 14.75% for the first year and gradually decreasing every year by 0.25%.
On the Vietnamese side, the Ministry of Industry and Trade has tried to warn businesses of the solar panel risk of being applied anti-dumping taxes many times, even putting this item on the early warning list of items at risk of being investigated by foreign trade remedies.
Accordingly, for the investigation of anti-dumping and anti-subsidy tax evasion with solar batteries imported from Vietnam, businesses involved in the case should closely monitor the situation, and proactively and closely coordinate with investigative agencies throughout the course of the case to ensure the legitimate rights and interests of enterprises.
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.
