Solar

Commerce pushes ruling in Auxin Solar tariff case to August

Commerce pushes ruling in Auxin Solar tariff case to August
(A container ship at the Port of Los Angeles. Credit: Flickr/Corey Seeman)

The U.S. Department of Commerce has pushed the deadline for a final ruling in the Auxin Solar tariff investigation to August 17.

Jose Rivera, International Trade Compliance Analyst AD/CVD Operations, Office VII, said the extension is needed due to "extensive case and rebuttal briefs" submitted to the agency, which require more time to review.

The previous deadline for a final ruling was May 1.

Commerce is investigating whether solar manufacturers in China are using four countries in Southeast Asia — Thailand, Malaysia, Cambodia, and Vietnam — as a conduit to evade American tariffs.

The petition, brought by California-based manufacturer Auxin Solar, has led to significant supply uncertainty for the solar industry.

Auxin Solar tariff petition timeline

Nov. 10, 2021: Commerce Department rejects an antidumping tariff petition brought by a group of anonymous domestic solar manufacturers against solar modules imported from three Southeast Asian countries.

Members of the American Solar Manufacturers Against Chinese Circumvention (A-SMACC) claimed that Chinese crystalline silicon photovoltaic cells and modules were being completed in Malaysia, Thailand, or Vietnam before being exported to the U.S., thus circumventing the antidumping duty and countervailing duty (AD/CVD) orders on crystalline silicon PV cells from China.

Commerce claimed A-SMACC's refusal to identify its members limited the scope of the agency's inquiry. The domestic manufacturers had claimed that identifying themselves could lead to retaliation by Chinese companies and government entities.

Feb. 10, 2022: San Jose, Calif.-based solar manufacturer Auxin Solar alleges unfair trade practices from Chinese solar module suppliers and asks Commerce to intervene.

In a 105-page petition, Auxin Solar asked Commerce to determine that solar cells and modules assembled in Malaysia, Thailand, Vietnam, and Cambodia are circumventing and undermining the effectiveness of U.S. trade remedy laws.

In a statement, Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association criticized Auxin for pursuing what she called the “self-interests of one company.” 

March 28, 2022: Commerce initiates an investigation into the Auxin Solar tariff petition.

May 11, 2022: Commerce Sec. Gina Raimondo testifies before Congress that the chance of her agency implementing a 200% tariff on solar modules implemented from Southeast Asia is "exceedingly unlikely" in an attempt to quell concerns from the solar industry over the Biden administration's investigation.

Raimondo testifies that the Commerce Department is required, by law, to investigate a petition that meets statutory requirements.

May 9, 2022: In an exclusive interview on the Factor This! podcast from Renewable Energy World, Auxin Solar CEO Mamun Rashid explained his reasoning for bringing forward the AD/CVD petition. Rashid denied receiving support from large domestic manufacturers, as the broader industry gossiped that First Solar was behind the push.

"We want to make sure investing in American manufacturing is a safe bet. That's what this is all about," Rashid said. "Once we saw the data (regarding solar modules produced in Southeast Asia), it looked very suspicious."

June 6, 2022: Following a $5 million pressure campaign from the solar industry, President Joe Biden issued a two-year pause on new solar tariffs through June 2024. The moratorium alleviated fear that Commerce's investigation could result in retroactive tariffs— a threat that brought many projects to a halt.

Aug. 16, 2022: President Joe Biden signed into law the Inflation Reduction Act, which devoted $369 billion to clean energy and climate change mitigation.

The law included historic incentives for domestic manufacturing with the goal of reducing the solar industry's dependence on suppliers from China and Southeast Asia.

Dec. 1, 2022: A preliminary determination issued by Commerce found that the Thailand operations of Canadian Solar and Trina Solar, as well as BYD Cambodia and Vina Solar Vietnam (LONGi), have circumvented U.S. tariffs.

Other companies also under investigation — New East Solar Cambodia, Hanwha Q CELLS Malaysia, Jinko Solar Malaysia, and the Vietnam operations of Boviet Solar — were found not to be violating AD/CVD rules.

Jan. 26, 2023: A bipartisan group in Congress filed a bill that would undo President Joe Biden's two-year pause on new solar tariffs. The group aimed to use the Congressional Review Act to reverse the moratorium, raising fears that retroactive tariffs could again be on the table.

The Congressional Review Act allows Congress to repeal rules enacted by the executive branch if they were enacted within 60 legislative days of the end of the last legislative session. To repeal an eligible rule, lawmakers must introduce CRA legislation within 15 days of a new legislative session.

While a simple majority is required in both chambers for passage, a CRA bill must pass the U.S. House of Representatives within 60 calendar days of its introduction, or it expires. Two-thirds of both the House and Senate would have to vote in favor of the bill to override a presidential veto.

April 17, 2023: More than 400 companies signed a letter addressed to leaders in Congress opposing use of the Congressional Review Act to turn back Biden's executive order.

April 24, 2023: White House officials told Reuters that President Joe Biden would veto a bill attempting to override his two-year pause on new solar tariffs should it pass both chambers in Congress.

Officials added that Biden does not intend to extend the tariff pause when it expires in June 2024 due to "strong trends in the domestic solar industry."

April 26, 2023: Commerce extends the deadline for a final determination in the Auxin Solar petition investigation from May 1, 2023 to Aug. 17, 2023, citing "complex" and "extensive" responses to the case.