U.S. finds China subsidizes solar panel exports

   A Commerce Department investigation on Tuesday determined China subsidizes its exports of crystalline silicon photovoltaic cells, and said U.S. imports of these products should be subject to countervailing duties.
   The countervailable subsidies in China range from 2.9 to 4.73 percent. According to Commerce, Wuxi Suntech Power Co. received a preliminary subsidy rate of 2.9 percent, while Changzhou Trina Solar Energy Co. obtained a subsidy rate of 4.73 percent. All other Chinese producers/exporters received a preliminary subsidy rate of 3.61 percent.
   As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates, applicable to all entries of Chinese solar cells made up to 90 days prior to the preliminary determination.
   Commerce’s preliminary determination in the companion antidumping duty investigation on solar cells from China is scheduled for release on May 17.
   On March 20, Commerce also announced a clarification in the scope of its antidumping and countervailing duty investigations, finding that it covers not only imports of solar cells produced in China and solar modules/panels produced in China from Chinese-made solar cells, but also imports of solar modules/panels produced outside China from solar cells produced in China. Commerce also found its investigations do not cover imports of modules/panels produced in China from solar cells made in a third country.
   Merchandise covered by the countervailing duty investigation is currently classified in the Harmonized Tariff System of the United States under subheadings 8501.61.0000, 8507.20.80, 8541.40.6020 and 8541.40.6030.
   In 2011, imports of solar cells from China reached $3.1 billion.
   Commerce is scheduled to make its final determination in June. If Commerce makes an affirmative final determination, and the U.S. International Trade Commission makes an affirmative final determination that imports of solar cells from China injure the domestic industry, Commerce will issue a countervailing duty order. The ITC is scheduled to make its final injury determination in July 19.