Vietnamese Solar Products Made From Chinese Wafers Not Subject to AD/CVD, Commerce Says

Solar panels made outside China using Chinese-origin solar wafers are not subject to antidumping and countervailing duties on crystalline silicon photovoltaic products from China (A-570-010/C-570-011), the Commerce Department said in a recent scope ruling.

SunSpark, the importer of the solar panels, had apparently requested the scope ruling after CBP sent it a notice of action that said it would suspend liquidation and require cash deposits on its entries. The panels were made by Irex in Vietnam using solar cells also produced by Irex in Vietnam, which were in turn manufactured using solar wafers sourced from China. The wafers must “undergo a series of high-tech production processes in order to transform them into energy-collecting solar cells.”

Commerce said CBP “disclosed no reason for subjecting SunSpark’s products to the Orders other than CBP’s belief that products produced from Chinese origin wafers are subject merchandise.” The notice of action also gave no other reason to suspend liquidation, “other than the fact that they are produced from Chinese wafers,” Commerce said.

“Put simply, wafers are not cells,” Commerce said. The AD/CVD orders on solar products only cover solar panels manufactured in China, so they clearly don’t apply to the panels imported by SunSpark. If the panels had been made from solar cells sourced from China, they would be covered by the separate AD/CVD orders on solar cells from China, but “the only involvement of China in this matter is as the country of origin of the wafers,” the agency said.

Commerce said it would “instruct CBP not to suspend liquidation of entries, and to discontinue the suspension of liquidation of entries, if any, of the products covered by this scope ruling.”

Email ITTNews@warren-news.com for a copy of this scope ruling.