PRESIDENT ESTABLISHES 24-MONTH MORATORIUM ON IMPOSITION OF ANTIDUMPING, COUNTERVAILING DUTIES ON SOLAR GOODS FROM SOUTHEAST ASIAN COUNTRIES

In a somewhat unprecedented development, President Biden today announced a 24-month moratorium on the imposition of antidumping and countervailing duties on solar panels and cells imported from four Southeast Asian countries – Cambodia, Malaysia, Thailand and Vietnam.

  The development comes in the midst of a series of Commerce Department anticircumvention investigations, designed to determine whether solar cells and panels from the four countries are evading antidumping and countervailing duty measures imported on solar cells and panels from the People’s Republic of China.

  Concerns over the possible retroactive assessment of high tariffs on solar products from the Southeast Asian countries have caused the cancellation or postponement of a large number of clean energy projects being undertaken in the United States. The newly announced moratorium is styled as a “bridge”, designed to allow United States energy companies to complete installation of solar projects using components from the Southeast Asian countries in question, without concern about possible crippling tariff assessments.

  Despite the President’s actions, Commerce’s anticircumvention investigations will continue. Presumably any tariffs announced as a result of the investigations will be imposed on goods imported on and after the date the Presidential moratorium on duty assessment lapses.

  This type of Presidential intervention in antidumping and countervailing duty matters is rare. It remains to be seen whether the proponents of the anticircumvention investigations will seek to challenge the President’s action in the United States Court of International Trade.

  In addition to imposing the tariff moratorium, the President invoked the Defense Production Act (DPA), directing increased production of United States-origin solar goods as well as other energy products including building insulation, heat pumps, electrolyzers, fuel cells and certain platinum group metals. The President is also seeking to stimulate domestic production of grid infrastructure products, such as transformers .

  In the government procurement area, the President is also creating new incentives for Federal government agency procurement of domestically-made energy products, including the creation of “Master Supply Agreements” for such goods, and providing “Super Preferences” for such procurement under the Buy American Act.

  If you have questions concerning these actions, please contact a Neville Peterson professional.