Venable LLP’s Lydia Childre has provided a brief update on the US Department of Commerce’s investigation into circumvention of antidumping and countervailing duties (AD/CVD) for solar cells and modules imported from Malaysia, Vietnam, Thailand, and Cambodia, made with parts and components originating from China. The investigation has undergone recent developments in Congress and the DOC.
Following President Biden’s solar emergency declaration in June 2022, which suspended duties for two years, the House of Representatives voted (221-202) to rescind the emergency declaration on April 18, through H.J.R. 39, a Congressional Review Act Legislation on Solar Tariffs. The Senate is expected to pass the CRA as well, but the President has announced his intention to veto it, and it is unclear whether there are enough votes in both chambers to override the veto. House trade counsel is exploring how far back the DOC can retroactively apply duties, potentially as far back as 2012 when the initial order was imposed.
The DOC issued a preliminary determination on December 27, 2022, with “country-wide” circumvention findings for all four countries. The deadline for the final determination was originally set for May 1, 2023, but due to the investigation’s complexity, the DOC has postponed the deadline to August 17, 2023.
Customs brokers should be cautious of potential retroactivity for duties and ensure compliance with DOC’s certification requirements in their transmittals to Customs and Border Protection (CBP).
