Việt Nam held the largest market share of solar panels exported to the US in the first quarter of 2023. — Photo evn.vn

HÀ NỘI — The United States International Trade Commission (USITC) has initiated a midterm review of safeguard measures on solar energy panels and components, including components, equipment and photovoltaic cell components, whether partially or fully integrated into other products.

These measures were imposed in February 2018 and extended by President Joe Biden in February 2022 for an additional four years. The extension increased the tariff rate quota to 5 gigawatts, doubling the original measure.

Under the extension, imported products within the tariff rate quota will not be subject to safeguard duties but will be subject to regular import duties based on the current US tariff schedule (currently set at zero per cent). Products beyond the quota will face a safeguard duty of 14.75 per cent for the first year, gradually decreasing by 0.25 per cent each subsequent year.

The midterm review is required for safeguard measures lasting more than three years. Its purpose is to assess the impact and effectiveness of the measures on the US manufacturing industry. Based on the review results, the USITC may propose adjustments to the measures, such as maintaining the duty rate, extending or reducing their duration, lowering the duty rate or exempting certain countries from the duties.

US imports of solar panels surged to over 850,000 tonnes in the first quarter this year, a significant increase from the previous quarter's 670,000 tonnes. Among these imports, Việt Nam held the largest market share, accounting for over 30 per cent, followed by Thailand, Malaysia, and Cambodia. Collectively, these four Southeast Asian countries comprised nearly 80 per cent of the photovoltaic (PV) panel imports to the US in the first three months, as per statistical data provided by Panjiva, a supply chain research unit of S&P Global.

Panjiva also highlighted that the Vietnamese production branch of American company First Solar Inc, a major supplier of solar panels to the US market, is not under investigation by the US Department of Commerce.

A hearing related to the investigation is scheduled for November 14, 2023. The USITC is required to submit the midterm review report to the President and the US Congress by February 6, 2024. — VNS