{"id":107707,"date":"2024-10-30T08:00:19","date_gmt":"2024-10-30T12:00:19","guid":{"rendered":"https:\/\/\/?p=107707"},"modified":"2025-01-29T07:48:06","modified_gmt":"2025-01-29T12:48:06","slug":"unique-ad-cvd-case-brings-extra-taxes-to-imported-solar-racking","status":"publish","type":"post","link":"https:\/\/\/2024\/10\/unique-ad-cvd-case-brings-extra-taxes-to-imported-solar-racking\/","title":{"rendered":"Unique AD\/CVD case brings imported solar racking into spotlight"},"content":{"rendered":"

UPDATE<\/strong>:\u00a0<\/em>The U.S. International Trade Commission has reversed anti-dumping\/countervailing duties issued by the Dept. of Commerce on aluminum extrusion imports from 14 countries. In early October, Commerce completed a yearlong investigation determining that the domestic aluminum extrusion industry wasn’t able to compete with the cost of these imports. Then on the afternoon of Oct. 30, a majority vote was reached by the four-person ITC board to overrule these import duties.<\/p>\n

Imported solar racking, including solar tracker assemblies, were among the extruded aluminum products affected by these potential duties. The ITC is expected to publish a report on its determinations by Dec. 10. Petitioners are able to appeal<\/a> the ITC’s decisions on cases related to imported goods.<\/p>\n

Originally reported story below:<\/em><\/p>\n


\n

Domestically manufactured solar racking and mounts may experience a boon thanks to recently enacted trade duties on a range of aluminum products imported from countries around the world.<\/p>\n

\"\"

Credit: Adobe Stock<\/p><\/div>\n

The U.S. Dept. of Commerce in October placed antidumping and countervailing duties (AD\/CVD) on aluminum extrusions imported from 14 countries. After nearly 13 months of review, these trade duties<\/a> cover a list of aluminum extruded products from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates and Vietnam.<\/p>\n

\u201cIn all of these [AD\/CVD] cases, typically what you see is a surge of subject imports from the countries that are at issue \u2014 so, the 14 countries here \u2014 where they\u2019re taking market share from the U.S. producers, and they\u2019re priced much lower,\u201d said Robert DeFrancesco, a partner in international trade practice at Wiley Rein LLP and counsel to this case\u2019s filing petitioners. \u201cThey\u2019re using dumped and subsidized pricing to gain market share in the United States.\u201d<\/p>\n

Among the aluminum products within the scope of these import duties are solar panel racking rails, solar tracker assemblies, electric vehicle battery trays and EV charging station parts or assemblies. Aluminum framing on imported solar modules is not affected by these trade duties.<\/p>\n

The federal government\u2019s look into the current state of aluminum imports followed an existing case regarding aluminum extrusion imports from China, which was initiated in 2011. This latest AD\/CVD investigation started in October 2023 after a petition was filed by the U.S. Aluminum Extruders Coalition, a group representing 14 domestic aluminum extruders, and the United Steel Workers Union.<\/p>\n

\u201cIn order to bring a case, you have to have standing, and you have to show that you represent at least 25% of the U.S. industry and 50% of anyone who expresses an opinion on it,\u201d said Greg Husisian, partner and litigation attorney with Foley & Lardner LLP and chair of the firm\u2019s International Trade and National Security Practice. \u201cAt the very start, there\u2019s a requirement that it be filed on behalf of the U.S. industry producing the same product, and the orders result, generally, in fairly high duty rates.\u201d<\/p>\n

Depending on their country of origin, the new import duty rates on aluminum extrusions range from a few percent up to nearly 377%. The latter applies to imports from China. All 14 countries received antidumping duties, while only China, Indonesia, Mexico and the United Arab Emirates also have countervailing duties, due to their own countries\u2019 efforts at subsidizing aluminum extrusion production costs.<\/p>\n

AD\/CVD investigations aren\u2019t new to international trade or even the solar industry, but this aluminum extrusion case had its quirks.<\/p>\n

An unusual case of anti-dumping<\/strong><\/p>\n

The U.S. solar market is familiar with trade duties imposed on industry-specific products, like the AD\/CVD investigations into solar cells imported from Southeast Asia. However, solar cells generally have similar methods of production and are within a single product group. AD\/CVD investigations typically center on a single product type.<\/p>\n

\u201cAluminum extrusion\u201d is instead a production method that covers a breadth of different industries, from door frames to solar racking, and even includes \u201cfabrication.\u201d<\/p>\n

\u201c[This] is a very odd order, a very complicated scope, because it\u2019s based on how the product is made rather than the physical product,\u201d Husisian said. \u201cThat\u2019s why it covers so many different things \u2026 because it\u2019s based on a production process to reflect the fact that you can squeeze the aluminum out into, basically, whatever form you want.\u201d<\/p>\n

According to final investigation filings, Commerce considers aluminum extrusions from those countries subject to these duties \u201cregardless of form, finishing or fabrication, whether assembled with other parts or unassembled, whether coated, painted, anodized or thermally improved.\u201d If the product is extruded using the common elements composing aluminum and comes from one of those 14 countries, then it is subject to the additional trade duties.<\/p>\n

The exception to these duties is for aluminum extrusions that are permanently assembled with other components besides other aluminum extrusions and fasteners. That\u2019s why aluminum frames on solar modules are not subject to the duties.<\/p>\n

How these duties might affect the market<\/strong><\/p>\n

The purpose of initiating an AD\/CVD investigation is to level the playing field within a certain market, DeFrancesco said. With these duties in effect, importers will be responsible for paying those additional costs on affected extruded aluminum reaching American ports. The party making the purchase is commonly the one paying those duties.<\/p>\n

\u201cYou’re going to see lots of renegotiations, lots of risk management strategy,\u201d Husisian said. \u201cSometimes, people will come up with arrangements like not [setting] the final price until the administrative review is finished.\u201d<\/p>\n

A year following enactment of AD\/CVD duties, Commerce will reassess its determinations to see if the initial cash deposit rate set was sufficient. There is a chance that these duties could change, which would result in importers either being charged or refunded.<\/p>\n

Additionally, with these import duties in place, there is the chance that aluminum extrusion supply and prices in the United States will fluctuate, Husisian said. But the initial purpose of starting this investigation was to drive business to domestic aluminum extruders \u2014 including solar racking, mounting and tracker suppliers.<\/p>\n

\u201cLike all these cases, it’s always a lot of work at the beginning, and it\u2019s an awful lot of work at the very end,\u201d DeFrancesco said. \u201cWe’re hopeful for a good outcome, and we’ll have to wait and see.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

UPDATE:\u00a0The U.S. International Trade Commission has reversed anti-dumping\/countervailing duties issued by the Dept. of Commerce on aluminum extrusion imports from 14 countries. In early October, Commerce completed a yearlong investigation determining that the domestic aluminum extrusion industry wasn’t able to compete with the cost of these imports. Then on the afternoon of Oct. 30, a…<\/p>\n","protected":false},"author":19854,"featured_media":107708,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5119,640,3941,3004,3009,3010,5117,1690,5118,3011,1697,5120],"tags":[],"class_list":{"2":"type-post","19":"entry","20":"has-post-thumbnail"},"acf":[],"yoast_head":"\nUnique AD\/CVD case brings imported solar racking into spotlight<\/title>\n<meta name=\"description\" content=\"UPDATE:\u00a0The U.S. International Trade Commission has reversed anti-dumping\/countervailing duties issued by the Dept. of Commerce on aluminum extrusion\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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