Policy & Regulation

White House removes bifacial solar tariff exemption, following new tariffs targeting China

White House removes bifacial solar tariff exemption, following new tariffs targeting China
(Containers being unloaded at the Port of Long Beach in California. Credit: Dennis Schroeder/NREL)

The White House, after increasing tariffs targeting China across sectors like steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, and ship-to-shore cranes, announced it will remove the tariff exemption for bifacial modules and take additional actions to address what it calls China’s “unfair” trade practices.

Bifacial solar panels generally used in utility-scale solar projects are not currently subject to safeguard tariffs under Section 201 of the Trade Act of 1974. After the Trump administration implemented an exclusion for bifacial modules, they now make up almost all U.S. solar panel imports, the White House said.

Importers with pre-existing contracts for bifacial solar modules to be delivered within 90 days of the removal of the exclusion will be able to certify those contracts to continue using the exclusion for that period.

“We commend the Biden administration for closing the loophole in the 201 safeguard bifacial exemption that was opened in the previous administration,” said Mike Carr, executive director of the Solar Energy Manufacturers for America (SEMA) Coalition in response to the news. “The 201 safeguard was so weakened as to be largely irrelevant through the bifacial exclusion. Lifting the exemption reinstates a 15% tariff, providing important, but sadly still insufficient, relief from anti-competitive trade practices until the tariff is set to expire in February 2026. 

“We look forward to working with Customs and Border Protection to help craft a robust anti-stockpiling enforcement plan and are pleased to see their recognition of this burgeoning problem in today’s actions,” he added. “This plan must include specifics on what documentation is required to prove that modules are utilized by December 2024, or the market will continue to contend with a glut of below-cost-of-production modules. Finally, we hope to help craft solar trade monitoring systems akin to the robust regime the International Trade Administration currently provides for steel monitoring. This will help protect against continued efforts by Chinese-headquartered companies to protect their manufacturing cartel that manipulates global pricing to their advantage and the detriment of American manufacturing.” 

In June 2022, President Biden initiated a temporary, 24-month bridge to facilitate certain imports from Cambodia, Malaysia, Thailand, and Vietnam duty-free while the domestic solar manufacturing base ramped up. Since then the U.S. solar manufacturing capacity has grown, which the White House said removes the need for the bridge. The bridge will end as scheduled on June 6, 2024, and producers in Southeast Asia that have been found to be circumventing antidumping and countervailing duties on solar manufacturers from the People’s Republic of China (PRC) will be subject to those duties.

GO DEEPER: Check out the Factor This! manufacturing playlist, including episodes on the U.S. solar manufacturing boom, thin-film manufacturing, and more. Subscribe wherever you get your podcasts.

Additionally, in implementing the solar bridge, the Department of Commerce requires that panels imported duty-free must be installed within 180 days to prevent stockpiling. Customs and Border Protection (CBP) announced that it will enforce this provision, including by requiring importers to provide CBP with a certification of solar module utilization with detailed information about the modules being deployed.

The White House also announced that the Department of Energy and the Department of Commerce will closely monitor import patterns to ensure the U.S. market does not become oversaturated and will explore measures to take action against “unfair” practices. Imports of solar modules from Southeast Asia, where PRC manufacturers have been found to be circumventing antidumping and countervailing duties, have surged over the last year, the White House said.

The Department of Treasury is also issuing further guidance concerning the domestic content bonus to enable more clean energy developers and manufacturers in the U.S. to take advantage of the bonus.

Tags