Update: Commerce revised CVD rates for Jinko Solar, Malaysia after ministerial error
This post has been updated below with the latest information for the Department of Commerce.
The U.S. Department of Commerce has released its preliminary determination in the Southeast Asia Antidumping and Countervailing Duties (AD/CVD) case regarding imported solar modules. This Preliminary Determination only covered CVD rates. Anti-dumping (AD) rates will be set at Commerce’s AD Preliminary Determination, is expected on either Nov. 27 or Dec. 2. AD and CVD rates are additive.
The CVD rates in the prelim decision are generally lower than what solar industry experts estimated, with a few key exceptions. According to Clean Energy Associates (CEA):
Based on our analysis of underlying market dynamics, we do not believe that these rates by themselves present a barrier to continued exports to the U.S. market for most large, tier 1 PV makers. The partial findings of critical circumstances and higher rates on many Thai PV module makers impose a competitive disadvantage, except for Trina which received a very low rate.
For Trina Solar (Thailand) and Boviet Solar (Vietnam) rates were set below 1%, which is a “de minimis” level. This means that these suppliers will not have to pay cash deposits going forward. If they can maintain this de minimis level through the CVD Final Determination, they will not be liable for duties.
Speaking of Trina, Steven Zhu, president of Trinasolar US, commented: “The ruling reaffirms Trina’s US expansion plans with confidence and dedication to the US market. Once operational in Q4 2024, the Texas facility will produce high power Vertex modules for utility-scale, commercial & industrial, and residential solar applications in the United States, utilizing polysilicon sourced from the US and Europe, and boosting the economy with over 1,300 local jobs.”
Critical circumstances
Commerce did not find critical circumstances for mandatory respondents Trina Solar (Thailand), JA Solar (Vietnam), and Boviet Solar (Vietnam). It did find critical circumstances for all other producers in Thailand and Vietnam. According to CEA:
This means Customs will collect cash deposits on PV cells and modules that were entered into the United States 90 days or fewer before the publication of the Preliminary Determination in the Federal Register from PV manufacturers and exporters in Thailand and Vietnam except these three.
CEA expects the finding of critical circumstances in Thailand to impact Canadian Solar, Runergy, and other Thai PV makers given the 23.06% country-wide CVD rate. But both the Thai and Vietnamese rulings also have implications for developers, EPCs, and other module buyers
Update 11/4: On 10/8/24, the petitioners in this AD/CVD case submitted to the Department of Commerce evidence of what they are calling “significant ministerial errors” in the calculation of Jinko’s preliminary CVD rate of 3.47% for Malaysia.
A “ministerial error” results from an arithmetic, clerical, or unintentional mistake, and the error is considered “significant” if the absolute corrected value is >5% different from the incorrect value and is >25% of the weighted average CVD rate.
On 11/1, the Department of Commerce agreed that it “made a significant ministerial error in calculating Jinko’s denominator by inadvertently copying inaccurate sales data reported using Microsoft Excel spreadsheets that contained mixed references.” Here are the updated CVD rates for Jinko Solar and Malaysia:
- 3.47% to 9.92% for Jinko;
- 123.94% to 124.78% for the non-responsive companies; and
- 9.13% to 12.32% for the all others rate in Malaysia.
Jinko also filed comments with the DOC to identify a clerical error in the calculation of certain exempted import duties and sales taxes, alleging that its “free trade zones” benefits were double counted, and that the rate for this benefits program should be reduced from 0.42% to 0.21%.
The following are the published preliminary subsidy rates for imported solar modules:
Cambodia
| Exporter/Producer | Subsidy Rate (percent) |
| Solarspace New Energy (Cambodia) Co., Ltd. | 8.25 |
| Jintek Photovoltaic Technology Co., Ltd | 68.45* |
| ISC Cambodia | 68.45* |
| All Others | 8.25 |
Malaysia
| Exporter/Producer | Subsidy Rate (percent) |
| Hanwha Q CELLS Malaysia Sdn. Bhd. | 14.72 |
| Jinko Solar Technology Sdn. Bhd.; Jinko Solar (Malaysia) Sdn. Bhd.; Omega Solar Sdn. Bhd.** | 9.92% (updated 11/1) |
| Baojia New Energy | 124.78% (updated 11/1) |
| Pax Union Resources SDN BHD | 124.78% (updated 11/1) |
| SunMax Energy SDN BHD | 124.78% (updated 11/1) |
| All Others | 12.32% (updated 11/1) |
**Commerce has found the following companies to be cross-owned with Jinko Solar Technology Sdn Bhd: Jinko Solar (Malaysia) Sdn. Bhd. and Omega Solar Sdn. Bhd.
Thailand
| Exporter/Producer | Subsidy Rate (percent) |
| Trina Solar Science & Technology (Thailand) Ltd. | 0.14 (de minimis*) |
| Taihua New Energy (Thailand) Co. Ltd | 34.52** |
| Sunshine Electrical Energy | 34.52** |
| All Others | 23.06 |
**Rate based on an adverse inference.
Vietnam
| Exporter/Producer | Subsidy Rate (percent) |
| Boviet Solar Technology Co., Ltd. | 0.81 (de minimis*) |
| JA Solar Vietnam Company Limited; JA Solar PV Vietnam Company Limited; JA Solar NE Vietnam Company Limited** | 2.85 |
| GEP New Energy Viet Nam Company Limited | 292.61*** |
| HT Solar Vietnam Limited Company | 292.61*** |
| Shengtian New Energy Vina Co., Ltd | 292.61*** |
| Vietnam Green Energy Commercial Services Company Ltd. | 292.61*** |
| All Others | 2.85 |
**Commerce has found the following companies to be cross-owned with JA Solar Vietnam Company Limited: JA Solar PV Vietnam Company Limited; and JA Solar NE Vietnam Company Limited.
***Rate based on an adverse inference.
Case Calendar
| Event | CVD INVESTIGATIONS |
| Petitions Filed | April 24, 2024 |
| Commerce Initiation Date | May 14, 2024 |
| ITC Preliminary Determination | June 10, 2024 |
| Commerce Preliminary Determinations | September 30, 2024 |
| Commerce Final Determinations | February 10, 2025 |
| ITC Final Determination* | March 27, 2025 |
| Issuance of Orders** | April 3, 2025 |
*This will take place only in the event of a final affirmative determination from Commerce.
**This will take place only in the event of final affirmative determinations from Commerce and the International Trade Commission.
Commerce also released its final determination on imported aluminum extrusions, imposing duties on imports from 14 countries. The decision will impact imported solar racking products.
Solar Builder will update this story as more information becomes available and reporting on the impacts on the project development.
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