Commerce Proposes to Apply Grace Period for Solar Cell AD/CV Duties Prior to Proclamation

The Commerce Department on July 1 issued a proposed rule to implement the 24-month grace period announced by presidential proclamation in June (see 2206060014) for imports potentially subject to antidumping and countervailing duties on solar cells from Cambodia, Malaysia, Thailand and Vietnam. As announced in the proclamation, the proposal would exempt solar cells subject to the inquiries from AD/CV duties until June 6, 2024.

“This proposed rule would provide that, in the event of an affirmative preliminary or final determination in the circumvention inquiries, Commerce would not instruct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of these cells and modules, collect cash deposits on those entries, or apply antidumping or countervailing duties to those entries, so long as the entries of the cells or modules were entered, or withdrawn from warehouse, for consumption before June 6, 2024 or before the date the emergency has terminated, whichever occurs first,” the proposal said.

The proposed grace period would not apply to imports already subject to existing antidumping and countervailing duty orders on solar cells and solar products from China and Taiwan, Commerce said.

The proposed grace period also would apply to entries before the proclamation was signed, i.e., prior to June 6, 2022, Commerce said. “This treatment of pre-Proclamation entries is merited because the President has determined that an emergency exists that affects both current and potential future energy projects dependent on solar module imports. Consistent with the purpose of the Proclamation, entities that use [Southeast Asian]-Completed Cells and Modules should not be financially restricted from investing in near-term or future solar capacity additions because they had to pay cash deposits on merchandise that entered the United States just a few months, or even days, before the signing of the Proclamation.”

If Commerce issues an affirmative determination of circumvention in its inquiries, it will instruct CBP to begin suspension of liquidation and cash deposit requirements for entries on or after June 6, 2024, or earlier if the emergency proclaimed in the proclamation is ended prior to that date, Commerce said. “This proposed action would ensure that once this emergency has passed, suspension of liquidation and collection of cash deposits of antidumping and countervailing estimated duties and duties would be instituted and applied prospectively, to post-Date of Termination entries, as set forth by statute and regulation.”