Advice for businesses as the US considers tax exemptions for solar batteries

Regarding the US consideration of a temporary tax exemption with solar battery Importing from Vietnam, the Trade Remedies Administration (Ministry of Industry and Trade) has just issued a recommendation that businesses need to continue to review the export activities of products subject to anti-circumvention investigation to the United States; master the regulations, order and procedures for anti-tax evasion investigation of the United States. On the other hand, enterprises must strictly and fully comply with the requirements of the US investigation agency as well as closely coordinate with the Trade Remedies Department throughout the course of the case.

Earlier, on June 6, 2022, US President Joe Biden declared a state of emergency related to a shortage of domestic supply of solar cells and modules for solar power production. , contributing to reducing dependence on thermal power to achieve the goal of developing clean energy and combating climate change of the United States.

Notably, the US President assigned the US Secretary of Commerce to consider taking appropriate action to allow exemption from anti-dumping, anti-subsidy and anti-evading anti-dumping and anti-subsidy taxes (if applicable) yes) for solar cell and module products imported from 4 Southeast Asian countries.

Specifically, including Cambodia, Malaysia, Thailand and Vietnam with a period of 24 months from the date of declaration or until the state of emergency is lifted, whichever comes first.

According to the Trade Remedies Administration, on March 28, 2022, the United States Department of Commerce initiated an anti-dumping and anti-subsidy tax evasion investigation by the United States of America on Chinese medical products. solar cells and modules imported from the four Southeast Asian countries mentioned above. Currently, these Chinese products are being imposed by the United States with anti-dumping duties ranging from 15.85% to 238.95% and anti-subsidy taxes from 11.97% to 15.24%.

In President Joe Biden’s statement, there are several points businesses should note that the above statement is the direction of the President of the United States to the US Department of Commerce. The United States Secretary of Commerce shall consult with the Secretary of the Treasury and the Secretary of Homeland Security regarding the implementation of this declaration.

In particular, the President of the United States recommitted to protecting the independence and integrity of trade investigations conducted by the United States Department of Commerce and recognizing the important role these investigations play in strengthen the economy.

The case of investigation against evasion of trade remedies tax on solar cell and module products imported from 4 Southeast Asian countries; in which, Vietnam is still being conducted by the US Department of Commerce and has not yet come to an official conclusion on the case. Products imported from Vietnam are not currently under investigation by the United States, applying anti-dumping and anti-subsidy measures.

In addition, in the event that the US Department of Commerce concludes an investigation into solar cell products and modules imported from Vietnam to evade trade remedy duties, the decision to apply anti- Evasion is likely to be deferred until June 6, 2024, or until the state of emergency is lifted (whichever comes first).

The postponement (if any) is only temporary. The US Government’s priority goal is still to boost domestic solar cell production capacity so if US solar cell production capacity increases, restrictions on imports will be applied.

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