The Impact and Countermeasures of the Final Ruling of the US Photovoltaic Anti - circumvention Investigation

On August 18, 2023, the US Department of Commerce announced the final ruling results of the anti - circumvention investigation against Chinesephotovoltaicproducts. This announcement has had a profound impact on the global photovoltaic industry chain. Here, we will conduct an in - depth interpretation and analysis of this final ruling result and explore its long - term impact on the global photovoltaic industry.

On April 1, 2022, the US Department of Commerce launched an anti - circumvention investigation into Chinese photovoltaic products, aiming to explore whether third countries bypassed the taxation on Chinese products by transferring production or processing links. The countries involved in the investigation include Thailand, Cambodia, Vietnam, and Malaysia. After nearly a year of in - depth investigation, the US Department of Commerce made a positive preliminary ruling on December 1, 2022, and announced the final ruling results on August 18, 2023.

According to the final ruling results of the US Department of Commerce, this investigation mainly targets batteries and components that are manufactured in Cambodia, Malaysia, Thailand, or Vietnam and use raw materials or components produced in China.solarThese products are exported from the above four countries to the United States.

Batteries:The batteries identified as circumvention are mainly manufactured using silicon wafers produced in China in the above four countries, and they meet the description of the product scope of the US anti - dumping and counter - vailing duty orders on Chinese photovoltaic products.

2、Modules:The modules identified as circumvention are assembled from batteries produced in the above four countries using silicon wafers produced in China, and more than 2 (i.e., at least 3) of the other 6 main materials used in the modules (i.e., silver paste, aluminum frame, glass, backsheet, EVA, junction box) are produced in China. This means that as long as the silicon wafers and at least 3 other main materials are produced in China, the modules fall within the product scope of this anti - circumvention investigation.

The US Department of Commerce specifically clarified in the final ruling that even if the silicon wafers are sliced in a third country, as long as the silicon rods or silicon materials involved are from China, these silicon wafers are still considered as Chinese - made silicon wafers. In addition, modules assembled in a third country using batteries produced in the four Southeast Asian countries, or modules assembled in the four Southeast Asian countries using batteries from a third country, are not within the product scope of this anti - circumvention investigation.

The final ruling results show that there are circumvention behaviors in the four countries of Thailand, Cambodia, Vietnam and Malaysia, but three companies, Hanwha Q Cells (Malaysia), Jinko (Malaysia) and Boviet (Vietnam), are found not to have circumvention behaviors.

Compared with the preliminary ruling, there is no substantial change in the final ruling results. The US Department of Commerce maintains the affirmative conclusion on circumvention and continues to implement the three “duty - free declarations” system, especially the duty - free conditions based on non - Chinese components. This measure aims to ensure the supply in the US market, while encouraging the global photovoltaic industry to reduce its dependence on China and achieve the goal of supply chain diversification.

1、Clarification on “originating from” Chinese silicon wafers:The US Department of Commerce has clearly defined whether silicon wafers should be considered as “originating from” China. That is, as long as the silicon wafers are sliced in China, they are regarded as Chinese products, regardless of the origin of other raw materials of the silicon wafers.

2、Clarification on “use” and “installation” within 180 days:Photovoltaic products need to be used or installed in the US within the specified time, otherwise they do not meet the duty - free conditions.

3、Adjustment of the AFA enterprise list:Vina Solar (Vietnam) and NE Solar (Cambodia) are included in the AFA list, while Vietnam Sunergy (Vietnam) is removed.

4、Hanwha obtains the second “duty - free declaration”:The US Department of Commerce agreed with Hanwhas comment on keeping the name of the silicon wafer exporter confidential and allowed it to use the second “duty - free declaration”.

The US Department of Commerce, in order to ensure market supply and avoid over - reliance on a single country, proposed three “duty - free declarations”. These three “declarations” are based on different conditions and provide enterprises with the opportunity to continue exporting to the US.

1、The first “duty - free declaration”:Based on the 2 - year exemption order of the US President, photovoltaic products imported into the US within a specific time are exempt from duties.

2、The second “duty - free declaration”:For the 3 enterprises not identified as circumvention, the exporter and importer are required to declare the product origin and meet specific conditions.

3、The third “duty - free declaration”:For products not within the product scope of the anti - circumvention investigation, the exporter and importer are required to declare the origin of the raw materials or components of the products.

The final ruling result of the US Department of Commerce is expected to promote a deep adjustment of the global photovoltaic industry. To meet the US duty - free conditions, many enterprises may adjust their supply chains, reduce their dependence on China, and seek raw material or component supplies from other countries.