DOC Opens Solar Tariff Circumvention Probe Into Ethiopia

The Department of Commerce on Thursday announced it will initiate a tariff circumvention investigation into solar cell imports from Ethiopia.

The investigation will analyze solar cells, “whether or not assembled into modules.”

A coalition of U.S. manufacturers, including First Solar, Talon PV and Qcells, filed a petition seeking the probe in May. Officials in June gave themselves a 30-day extension to make their decision.

The petition alleges TOYO Solar and Origin Solar Manufacturing are circumventing existing anti-dumping/countervailing duties (AD/CVD) tariffs on Chinese solar components by completing the production of cells and modules in Ethiopia then shipping them to the U.S., or by producing cells in Ethiopia that are assembled into modules in Vietnam before being shipped to the U.S.

TOYO has denied the claims, with Chief Strategy Officer Rhone Resch telling PV Magazine the petition was “riddled with misinformation.”

Origin has not been as vocal in its pushback. But in comments filed May 27, an attorney representing the company rejected an implication from petitioners that Origin is “cross-owned” with Canadian Solar, or “took deliberate steps to conduct processing or sell merchandise that they could have reasonably known would still be subject to the AD/CVD.”

Tim Brightbill, an attorney with Wiley Rein representing the petitioners, said they “commend” the DOC’s decision to initiate the probe.

“Our sustained monitoring of these trade flows is delivering results, and this new investigation sends a clear signal to bad actors: we will not stand by while they repeatedly circumvent our trade laws to undercut American manufacturing,” Brightbill said in a statement.

The DOC has notified Customs and Border Protection (CBP) to continue the suspension of liquidation of all imports subject to the original China AD/CVD orders, and “to apply the cash deposit rates that would be applicable if the products were determined to be covered by the scope of the Orders.”

The DOC intends to publish its preliminary circumvention determination within 150 days, or by mid-December, and its final determination within 300 days.

Reporting by Colt Shaw, cshaw@opisnet.com; Editing by Jordan Godwin, jgodwin@opisnet.com