U.S. trade probe finds some Chinese solar panel makers are dodging tariffs By Reuters

(Reuters) -U.S. trade officials on Friday said a months-long investigation had found that certain Chinese solar panel makers were dodging tariffs by finishing their products in four Southeast Asian countries.

The preliminary decision means certain large suppliers of solar panels to the U.S. market will be subject to duties on products made in Malaysia, Cambodia, Thailand and Vietnam, driving up costs for American project developers that buy those products.

The four countries account for about 80% of U.S. panel supplies.

The U.S. Commerce Department probe found that units of BYD Co (OTC:) Ltd, Trina Solar Co Ltd, Longi Green Energy Technology Co Ltd and Canadian Solar (NASDAQ:) Inc were circumventing the tariffs.

Those companies and others will face the same duty rates the United States already assesses on their Chinese-made products, officials said. The United States has had tariffs in place on Chinese solar cells and panels for a decade.

Auxin Solar, a small U.S. solar panel maker, requested the Commerce investigation in February. It was the latest in a string of efforts by U.S. solar panel producers to stem the flow of cheap Asian goods that they argue make their products uncompetitive.

“Commerce’s investigations have largely validated and confirmed Auxin’s allegations of Chinese cheating,” Auxin Chief Executive Mamun Rashid said in a statement.

Producers including New East Solar, Hanwha Q CELLS, Jinko Solar and Boviet Solar were found not to be dodging the tariffs, Commerce said.

A final decision is expected in May.

“The only good news here is that Commerce didn’t target all imports from the subject countries,” Abigail Ross Hopper, president of solar trade group the Solar Energy Industries Association, said in an emailed statement. “This is a mistake we will have to deal with for the next several years.”

The levies will not take effect for two years thanks to a moratorium imposed by President Joe Biden earlier this year after solar companies said the mere threat of tariffs was freezing projects nationwide.

The waiver is meant to allow U.S. manufacturing time to ramp up, the White House has said.