The American Alliance for Solar Manufacturing Trade Committee, represented by Wiley Rein, has filed critical circumstances allegations with the U.S. Department of Commerce, targeting the surge in solar imports from Vietnam and Thailand, claiming it has reportedly harmed the domestic solar sector.

The Trade Committee’s allegations hinge on a marked increase in solar imports from these countries. Between April 2024 and June 2024, imports from Vietnam surged by 39%, while those from Thailand increased by 17%, compared to the period from January 2024 through March 2024.

In June 2024, Vietnam’s monthly imports reached a record high of over 2.5 GW, with an average of about 2.3 GW per month from April to June, up from less than 1.5 GW per month in the previous six months.

Tim Brightbill, co-chair of Wiley’s International Trade Practice and lead counsel to the petitioners, expressed concerns that several China-based companies operating in Thailand and Vietnam have accelerated their U.S. solar exports.

This acceleration is perceived as an attempt to evade impending antidumping and countervailing duties. The allegations come in response to these import surges, which are seen as detrimental to the U.S. market.

The U.S. Department of Commerce had already initiated an investigation on May 14, 2024, following petitions filed by the Alliance. The U.S. International Trade Commission (USITC) made a preliminary determination on June 7, 2024, affirming that imports from Vietnam, Cambodia, Malaysia, and Thailand are injuring U.S. solar manufacturers.

If the critical circumstances allegations are upheld, it could result in severe consequences, including retroactive duties on merchandise that entered up to 90 days before the preliminary determinations.

Antidumping duties are designed to counteract the sale of products in the U.S. at less than fair value, while countervailing duties offset unfair subsidies provided by foreign governments.

Following affirmative preliminary determinations by the Department of Commerce, importers will have to pay estimated duties at the time of import.

The USITC will assess whether these imports materially injure the domestic industry.

The Department of Commerce will continue its investigation, with preliminary determinations expected in late September 2024 for countervailing duties and late November 2024 for antidumping duties.

Final determinations are anticipated by spring 2025. This action follows a previous decision that Chinese solar manufacturers circumvent tariffs by routing products through Southeast Asian countries, including Vietnam and Thailand.

The petitioners, represented by a coalition of seven companies, aim to ensure fair trade practices and support the growth of the U.S. solar industry.

Last year, the U.S. Department of Commerce identified that Chinese solar manufacturers bypassed U.S. tariffs by routing their operations through subject Southeast Asian countries.

The U.S. also announced it would bring back bifacial solar modules under Section 201 tariffs as the country clamps down on cheap clean energy technology entering its shores from China. The exclusion for bifacial modules, widely used in utility-scale solar projects, was in force under Section 201 of the Trade Act of 1974. The exclusion, implemented by the previous administration, had led to a surge in imports.