Commerce Assigns Preliminary 541.94% AFA CV Rate in Solar Cells Review
Two Chinese exporters are set to face a high 541.94% countervailing duty rate based on their alleged lack of cooperation, said the Commerce Department in the preliminary results of an administrative review on solar cells from China published April 23. Solarchina did not cooperate in the review, and Taichang did not obtain a full questionnaire response from its parent company, causing Commerce to set a CV duty rate for the two companies as if they benefited from every program examined for all respondents during the administrative review.
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Commerce’s preliminary adverse facts available (AFA) memo shows nearly 400% out of the preliminary 541.94% rate is attributed to 747 grant programs, each accounting for 0.58%. Up until now, no Chinese exporter had yet received an AFA rate in any proceeding related to the CV duty order on crystalline silicon photovoltaic cells, whether or not assembled into modules, from China.
According to the issues and decision memorandum associated with the preliminary results, Solarchina, a mandatory respondent, did not submit a questionnaire response. Taichang, on the other hand, was not a mandatory respondent but instead produced solar cells exported by another mandatory respondent, Tianran. After unsuccessfully attempting to obtain financial statements for CMEC, Taichang’s grandparent, Tianran answered Commerce’s questionnaire based on publicly available information.
Commerce did not assign an AFA rate to Tianran, finding the company “demonstrated reasonable efforts” but “cannot be expected to obtain and submit a complete questionnaire response from an unrelated supplier that is unwilling to provide it.”