Why is the US considering temporary tax exemption for solar panels imported from Vietnam?

Lack of supply, US considers temporary tax exemption with solar battery Vietnam

US President Joe Biden has declared a state of emergency related to a shortage of cells and modules solar battery in the country to serve the production of solar power, contributing to reducing dependence on thermal power in order to achieve the goal of developing clean energy and combating climate change of the United States.

Accordingly, 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 any). ) for solar cell and module products imported from 04 Southeast Asian countries (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).

Previously, on March 28, 2022, the US Department of Commerce initiated an anti-dumping and anti-subsidy tax evasion investigation that the US applied to China for cell and tissue products. heat solar battery imported from 04 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 the statement of President Joe Biden, there are a number of points that Vietnamese businesses should note as follows: The above statement is the direction of the US President 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 the above statement, the President of the United States re-committed to protecting the independence and integrity of trade investigations being conducted by the United States Department of Commerce and recognizing the important role these investigations play in the strengthening the economy. The case of investigation against evasion of trade remedies tax on solar cell products and modules imported from 04 Southeast Asian countries (including Vietnam) is still being investigated by the Ministry of Trade. The United States conducts and has not yet reached an official conclusion on the case. Products imported from Vietnam are not currently under investigation by the US anti-dumping and anti-subsidy.

According to the proclamation of the President of the United States, in the event that the United States Department of Commerce concludes an investigation of cell and module products, Solar battery imported from Vietnam To avoid trade remedy tax, the decision to apply anti-circumvention measures is likely to be postponed 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 remains to boost domestic solar cell production capacity so if US solar cell production capacity increases, restrictions on imports will be applied.

To ensure their legitimate interests, the Trade Remedies Administration recommends manufacturing enterprises, export solar battery continue to review the export activities of products subject to anti-circumvention investigation to the United States; study, master the regulations, order and procedures for anti-tax evasion investigation of the United States; properly and fully comply with the requirements of the US investigation agency, closely coordinate with the Trade Remedies Bureau throughout the course of the case.