U.S. Department of Commerce Issues Tariff Warning to Chinese Solar Companies for 'Circumvention Production'

U.S. authorities have warned Chinese solar companies attempting to evade tariffs through circumvention production. These companies are reportedly avoiding anti-dumping tariffs imposed on Chinese solar products by completing final assembly in Southeast Asian countries.

According to Fox Business on the 20th (local time), the U.S. Department of Commerce announced on the 18th that subsidiaries of Chinese companies such as BYD, Trina Solar, Vinasolar, and Canadian Solar are evading U.S. tariffs on Chinese solar cells and panels by finishing the last simple processes in Southeast Asia.

Solar Module Factory in China
Photo by Yonhap News

However, the Department of Commerce has postponed the imposition of tariffs until after June next year to give U.S. importers of related products time to adjust to suppliers who have violated U.S. laws.

So far, the U.S. has imposed anti-dumping tariffs on Chinese solar-related products based on investigations by the Department of Commerce that Chinese companies receive unfair government subsidies. Eighty percent of solar panels supplied to the U.S. are produced in Cambodia, Malaysia, Thailand, and Vietnam. These companies must prove through certification procedures that the three key components used in solar cells and panels, such as wafers, are not of Chinese origin.

This content was produced with the assistance of AI translation services.