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handle is hein.crs/govejvh0001 and id is 1 raw text is: S    Congressional                                                   ____
aResearch Service
Circumvention Inquiry into Solar Imports
Updated December 19, 2022
On April 1, 2022, the Commerce Department initiated an inquiry into whether Chinese manufacturers of
crystalline silicon photovoltaic (CSPV) cells and panels are circumventing U.S. measures intended to
counteract unfair trade practices. Commerce initiated the inquiry in response to a petition by Auxin Solar
Inc., a U.S. manufacturer, alleging that solar cells and panels imported from Cambodia, Malaysia,
Thailand, and Vietnam use Chinese-made parts and components to avoid high U.S. tariffs on solar
equipment imported directly from China. The investigation has been controversial, including among
Members of Congress. Some stakeholders assert that uncertainty about the tariffs could slow deployment
of solar energy in the United States while others insist that action is needed to protect U.S. solar
manufacturing. While the Biden Administration recently used emergency authorities in effort to support
U.S. solar deployment, a final decision in this circumvention inquiry is expected no later than April 2023.
Background
In 2012, the Commerce Department and the U.S. International Trade Commission (ITC) determined that
imports of solar cells and panels from China were being sold below cost (dumped) or unfairly
subsidized and were injuring or threatened to injure the U.S. solar manufacturing industry. Commerce
imposed two remedial orders. The antidumping (AD) order imposed duties ranging from 18%-25% on
goods produced by specific Chinese firms and 250% on imports from all other Chinese firms. The
countervailing duty (CVD) order, which counteract subsidies, imposed duties of 14%-15% on all solar
products from China. In its petition, Auxin contended that certain producers in Southeast Asia have
manufacturing operations that involve minimal capital investments and technical research and rely on
Chinese inputs (e.g., solar glass, aluminum frames, and silver paste) to make CSPV cells and panels that
are then exported to the United States.
How Commerce Conducts Circumvention Inquiries
Circumvention inquiries determine whether a good imported from a country not subject to an AD or CVD
order should be included in the scope of an existing order.
Any interested party (e.g., relevant domestic and foreign manufacturers, importers, unions, and trade
associations) may submit a request for a circumvention inquiry. The Secretary of Commerce may also
self-initiate an inquiry. Once the Secretary receives a request, federal law and regulations establish
deadlines for further action:
Congressional Research Service
https://crsreports.congress.gov
IN11946
CRS INSIGHT
Prepared for Members and
Committees of Congress

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