October 3, 2022

Volume XII, Number 276

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September 30, 2022

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Commerce Issues Final Rule on AD/CVD Grace Period

The Department of Commerce (DOC) has issued the final rule implementing the two-year moratorium on anti-dumping or countervailing duties (AD/CVD) for solar panels and cells from Cambodia, Malaysia, Thailand, and Vietnam in accordance with the June 6, 2022, Presidential Proclamation (Declaration of Emergency and Authorization for Temporary Extensions of Time and Duty-Free Importation of Solar Cells and Modules from Southeast AsiaSee GT Alert, Biden Uses Emergency Powers to Pause New Solar Import Tariffs—Frequently Asked Questions), which provided for the two year moratorium on those tariffs.

The Sept. 16, 2022, DOC final rule provides that in the event there is an affirmative preliminary or final determination in the AD/CVD circumvention inquiries, cash deposits will not be collected, liquidations will not be suspended, and AD/CV duty assessments will not be applied until June 6, 2024 (“Date of Termination”). The waiver applies to entries of merchandise after the date of the final rule and to shipments already entered and that may be subject to the AD/CVD duties should there be an affirmative preliminary or final determination.

Note that pursuant to the Presidential Proclamation the grace period could be ended earlier than June 6, 2024, should the commerce secretary declare “the emergency…has terminated” and “the United States has access to a sufficient supply of solar modules to assist in meeting our electricity generation needs.” The final rule adds another requirement: The solar cells must now be used or installed within 180 days of the termination date. Tariffs may be reinstated following this period, but importers of solar cells and modules will not be subject to retroactive payments of tariffs on imports during the suspension period.

The rule provides certainty to importers of solar cells and modules as they await the results of the preliminary determination in the DOC investigation, expected by Nov. 28, 2022, and the final determination in the spring of 2023. As described in the previous GT Alert on this topic, the DOC began an inquiry into whether imports of solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam are circumventing the antidumping and countervailing duties orders on crystalline silicon photovoltaic cells, whether or not assembled into modules, from China. The DOC is considering whether the scope of the existing antidumping and countervailing orders against China includes those solar cells and modules completed in those four countries using Chinese parts and components.

©2022 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume XII, Number 263
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About this Author

Laura Siegel Rabinowitz Corporate Trade Attorney Greenberg Traurig Law Firm
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Laura Siegel Rabinowitz counsels domestic and multinational businesses on complex supply chain issues and other complicated challenges associated with trade, advising on mitigation of duty exposure and compliance. Laura has deep experience handling international trade projects for clients, including multinational importers, exporters, manufacturers, retailers, customs brokers, and freight forwarders.

Laura advises clients on mitigating tariffs on Chinese-made products and steel and aluminum and helps clients navigate the maze of regulations,...

212-801-9201
Jeffrey A. Chester Energy Finance Attorney Greenberg Traurig Los Angeles, CA
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Jeff Chester, Global Head of Energy Project Finance, has deep experience handling transactions related to renewable energy, having closed more than 100 wind and solar power projects throughout the United States and Mexico. Jeff has been centrally involved in the development of the equity, debt, and capital markets for renewable energy projects and represents developers, sponsors, lenders, and investors in a wide variety of energy finance transactions. He counsels a broad range of participants on renewable energy finance transactions involving construction and term debt, backleverage, tax...

310-586-7743
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John Eliason, Global Co-Head of Energy Project Finance, is a highly respected attorney in the field of tax equity. He has spent more than 20 years representing tax equity investors and developers, with a focus on renewable and alternative energy for the last decade. John has played a pivotal role in the advancement of the renewable energy market. His clients include major financial institutions (tax equity investors and infrastructure funds), solar, wind, and alternative energy developers, as well as leading equipment manufacturers.

John focuses his practice on advising tax equity...

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