[Newsletter | June, 2023] – US President Vetoes proposal to Abolish Tariff Exemption for Imported Solar Panels from Vietnam

The US Department of Commerce (DOC) considers taking appropriate action to grant exemption from anti-dumping, anti-subsidy, and anti-evading duties (if any) for solar cell products imported from Vietnam, Cambodia, Malaysia, Thailand…

According to the Trade Remedies Administration (Ministry of Industry and Trade), US President Joe Biden vetoed a US Congress resolution that would have eliminated the tax exemption for solar panels imported from Cambodia, Malaysia, Thailand, and Vietnam on May 16, 2023. The Department of Commerce (DOC) initiated an anti-dumping/anti-subsidy tax evasion inquiry into solar battery products imported from Cambodia, Malaysia, Thailand, and Vietnam. This is the latest development in a string of linked incidents.

On April 1, 2022, the DOC opened an investigation into the incident. Since approximately three-quarters of imported solar modules used in the United States are imported from Southeast Asia, US solar companies run the risk of increasing input costs, halting or delaying national projects, and laying off workers. This would negatively impact the nation’s efforts to deal with climate change and support sustainable economic growth based on the fast-paced adoption of solar and other clean energy technologies.

On June 6, 2022, US President Joe Biden declared a state of emergency due to the lack of domestic solar cells and modules for generation of electricity, thus reducing reliance on thermal power to advance the development of clean energy and fighting climate change in the United States.

As a result, the President Biden directed the DOC to evaluate taking certain actions necessary to allow exemption of anti-dumping, anti-subsidy, and anti-evading duties (if any) for solar cell products imported from Southeast Asian countries, including: Cambodia, Malaysia, Thailand, and Vietnam, for a period of 24 months from the date of declaration or until the state of emergency grant is revoked.

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On April 19 – 2023, the US House of Representatives passed Resolution H.J.Res.39 related to the import of solar battery products. Accordingly, the House of Representatives proposed to annul the Decision of the DOC. On May 3, 2023, the US Senate voted to pass the above resolution.

According to the legislative process of the United States, the Resolution, after being passed in the United States Congress (including the Senate and the House of Representatives), will be sent to the President of the United States for approval or veto. If the Resolution is approved, the DOC will not be able to exempt anti-dumping/anti-subsidy and anti-evading duties for solar panel products imported from some Southeast Asian countries within two years as directed by President Joe Biden.

On May 16, 2023, the President Joe Biden officially declared a veto on the proposal of the United States Congress. He said the development of a stable clean energy source is making headway and attracting a lot of international investment in the field of clean energy, as well as creating many jobs for the American people. According to Joe Biden, the US economy in the field of renewable and solar energy, will have a strong prosperity once the US has a stable source of raw materials after June 2024.

As for the solar energy industry, since he took office, there have been 51 new and expanded solar power equipment factories, and the US is on a path to increase the capacity of solar energy up to eight times.

If the veto of President Joe Biden’s proposal to abolish the tax exemption for solar panels is passed, this will create a great opportunity for Vietnamese businesses supplying solar products in Vietnam to enter this market. Noble Network will continue to monitor the situation, providing updates, and supporting your businesses in importing and exporting between Vietnam and the United States.

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