Chinese Solar Cells & Modules Face US Sanctions

Fresh List Of Products Under Second Tranche Of Section 301 By US Government Include 274 Tariff Lines, Taking Chinese Solar Cells & Modules Under Its Ambit
06:52 AM (Beijing Time) - 15. August 2018
trump

The US administration under President Donald Trump had in January 2018 imposed 30% anti-dumping duty on imported solar panels including those shipped by Chinese manufacturers. The new wave of tariffs under Section 301 will make Chinese importers of solar cells and modules pay 55% of tariffs to enter the US solar marketas of Aug. 23. (Photo Credit: Official White House Photo by D. Myles Cullen/Whitehouse.gov)

Key Takeaways

  • USTR office has announced 25% additional tariff on $16 billion worth of imports from China
  • This list includes ‘diodes for semiconductor devices, other than light-emitting diodes, nesoi’ which includes solar cells and modules
  • The new tariffs have been proposed under second tranche of Section 301 by the US government
  • Formal notice will be published shortly in the Federal Register through which the government will announce a process by which interested persons may request exclusion of certain products covered by a tariff line subject to additional duties
  • Customs and Border Protection will begin to collect additional duties on Chinese imports under the second tranche of Section 301 from August 23, 2018

The United States Trade Representative (USTR) office has slapped an additional tariff of 25% on $16 billion worth of imports from China. The code 8541.40.60 defines the category as ‘diodes for semiconductor devices, other than light-emitting diodes, nesoi’. This definition brings solar cells and modules under its ambit.

Section 301 trade tariffs come soon after the US government imposed 30% anti-dumping duty on imported solar panels (see Trump Slaps 30% Tariff On Imported Cells & Modules). With new tariffs, Chinese PV modules will have to shell out a 55% tariff to enter the US market.

This is the second tranche of additional tariffs the US government has imposed on imports from China under Section 301. Under the first tranche, tariffs were levied on $34 billion worth of imports from China. These have been in place since July 6, 2018.

The final approved list under second tranche contains 274 products. Originally, 284 tariff lines were proposed in June 2018. Post evaluation and public hearings, USTR and the interagency Section 301 committee trimmed it down to 274 products.

The new set of tariffs will come into effect on August 23, 2018, when US Customs and Border Protection will begin to collect additional duties on Chinese imports.

Products that have made it to the final list from USTR are listed on its website.

Formal notice will be published shortly in the Federal Register through which the government will announce a process by which interested persons may request exclusion of certain products covered by a tariff line subject to additional duties.

Recently, Robert Lighthizer of the USTR announced that President Trump had directed the agency to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10% in response to China’s decision to impose retaliatory duties on US goods. The process was initiated on July 10, 2018. Trump later conveyed that the proposed additional duty be increased to 25% from 10%.

The US and China have been on a ‘warpath’ over imports from each of these countries. The US conducted an ‘exhaustive’ Section 301 investigation in March 2018 according to which the Asian giant’s acts, policies and practices related to technology transfer, intellectual property and innovation as unreasonable, discriminatory and burden on US commerce.

 

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani