Post by jeffolie on Aug 26, 2012 10:47:34 GMT -6
200% import duty on US solar panels from tariffs:
RETROACTIVE PENALTY surprise for those ignorant of the law; ignorance of a law is no excuse in a court of law
Obama may let this be final or may defer the ruling due Oct 31st 2012, just before the elections.
"... Nearly $930 million of Chinese solar cells were imported into the U.S. between February and May, according to the Commerce Department.
"... A Commerce Department spokesman said media coverage of its investigation into dumping allegations should have served as warning to buyers that tariffs were possible. The department is scheduled to make a final decision on its duties in October.
" ... The International Trade Commission has been conducting a parallel investigation to determine whether the U.S. solar manufacturing industry has been harmed by the alleged dumping and unfair subsidies. It may consider the impact of tariffs on end users as part is its review. Although the agencies are considered equal, the ITC has the authority to wipe out the entire case. Or, the commission could find that the duties are warranted but shouldn't be collected retroactively. The ITC will make its final decision in November.
" ... In rare cases, the ITC and the Commerce Department have agreed to slap retroactive duties on imports, a Commerce Department spokesman said.
================================
200% import duty on US solar panels from tariffs:
RETROACTIVE PENALTY
Businesses Burned by Surprise Solar Tax
U.S. businesses that bought solar panels made in China earlier this year are retroactively being hit with unexpected tax bills, as they find themselves caught in the middle of a trade fight between U.S. and Chinese manufacturers. Cassandra Sweet has details on The News Hub.
video:
live.wsj.com/video/businesses-burned-by-surprise-solar-tax/9FDBF84C-1FD4-450B-B3FE-CD28E8ED6609.html?link=MW_hp_tboverticalx8#!9FDBF84C-1FD4-450B-B3FE-CD28E8ED6609
===================================
August 24, 2012
Solar Flare-Up: Back Tax Roils U.S. Firms
U.S. businesses that bought solar panels made in China earlier this year are retroactively being hit with unexpected tax bills, as they find themselves caught in the middle of a trade fight between U.S. and Chinese manufacturers.
ProVision Solar co-owners Marco Mangelsdorf and Douglas Bath had to pay $138,000 in retroactive tariffs on a solar-panel shipment from China.
.
The unusual bills are the result of action by the U.S. Commerce Department, which slapped provisional antidumping duties of between 31% and nearly 250% on solar panels containing Chinese-made solar cells in May.
U.S. businesses that bought solar panels made in China earlier this year are retroactively being hit with unexpected tax bills, as they find themselves caught in the middle of a trade fight between U.S. and Chinese manufacturers. Cassandra Sweet has details on The News Hub.
.The U.S. government imposed the tariffs in response to a trade case started last year by the U.S. arm of German company SolarWorld AG SWV.XE -1.41%and six small U.S. solar firms. They accused Chinese solar-panel makers of receiving unfair government subsidies and selling their products in the U.S. at prices below the cost of production.
The trade case has stirred tensions between Washington and Beijing and divided the U.S. solar industry. It is also resulting in large import-tax bills for dozens of U.S. companies, many small and medium-sized, that bought solar panels from Chinese suppliers as much as three months before the trade decisions were issued. The Commerce Department made the tariffs retroactive by 90 days.
Marco Mangelsdorf, who co-owns a company in Hawaii, ProVision Solar Inc., that designs and installs rooftop solar-panel systems, has been fuming since he received a tax bill in June from U.S. Customs, saying that he owed more than $138,000. That is 250% more than what he paid for a shipment of panels he received in February from a Chinese supplier.
Mr. Mangelsdorf said he wasn't aware the tariffs could be retroactive, or so steep.
"If I had any clue that I would be on the hook for a 200-plus percent duty on this order, I would be a crazy man" to make it, Mr. Mangelsdorf said.
William Perry, a Seattle attorney who has been representing some of the companies facing the tariffs, has estimated that U.S. firms that imported Chinese solar panels could be on the hook for roughly $100 million in new import taxes.
Nearly $930 million of Chinese solar cells were imported into the U.S. between February and May, according to the Commerce Department. The Commerce Department decided to impose duties only on the value of Chinese-made solar cells, not on the glass and metal panels that contain them. The cells are the most costly component.
A Commerce Department spokesman said media coverage of its investigation into dumping allegations should have served as warning to buyers that tariffs were possible. The department is scheduled to make a final decision on its duties in October.
The International Trade Commission has been conducting a parallel investigation to determine whether the U.S. solar manufacturing industry has been harmed by the alleged dumping and unfair subsidies. It may consider the impact of tariffs on end users as part is its review. Although the agencies are considered equal, the ITC has the authority to wipe out the entire case. Or, the commission could find that the duties are warranted but shouldn't be collected retroactively. The ITC will make its final decision in November.
In rare cases, the ITC and the Commerce Department have agreed to slap retroactive duties on imports, a Commerce Department spokesman said.
Some of the U.S. companies ensnared in the tariff fight buy and sell specialized solar products that are easily found in China but almost nowhere else.
Lincoln Dahl of St. David, Ariz., owns a small company called African Energy that buys "off the grid" solar panels and other equipment that can generate electricity and can bypass a utility's electrical grid. It then exports the products to customers in Africa. These lower-voltage solar products, which provide energy directly to appliances such as televisions and lights, are available in sufficient quantity mainly from China, Mr. Dahl said.
The company, which has seven employees, had to pay more than $42,000 for tariffs equal to 31% of the value of a shipment of solar gear that Mr. Dahl received in May, days before the Commerce Department decision, plus countervailing duties of 3% tied to the effects of the government subsidies.
Solar-panel makers world-wide have seen their profits erode due to oversupply, which has come about amid a rapid build-out of manufacturing capacity, primarily in China. Prices have plunged, driving smaller solar-panel makers into bankruptcy and putting pressure on larger players to find new demand for their products.
SolarWorld, the company that pushed for the tariffs, maintains the case is only about leveling the playing field with China, not making trouble for U.S. buyers. Chinese manufacturers have distorted the solar market thanks to deep financial support from the Chinese government, argued Gordon Brinser, president of the company's U.S. branch, SolarWorld Industries America.
"Today, there is no free market in solar," he said. In July, SolarWorld's German business and other European solar firms filed a similar trade case against Chinese rivals in Europe.
The Chinese government criticized the U.S. tariff decision at the time as "protectionist" and "unreasonable. China's Commerce Ministry meanwhile has fought back with its own investigation. It is examining allegedly unfair subsidies and potential dumping by U.S. companies that export polysilicon, a raw material used in solar manufacturing.
The U.S. tariffs are based on inaccurate assumptions about China's solar manufacturing industry and don't take into account legitimate cost-cutting that Chinese manufacturers have been able to achieve, said Mark Kingsley, chief commercial officer of China-based Trina Solar Ltd. TSL -5.46%
As the two sides argue, U.S. firms stung by the tariffs are pressing the government to reverse or soften them.
"It's completely unfair," said Chris Greacen, who runs a small side business supplying solar-powered desk lamps and cell phone chargers made in China to U.S. retailers such as Amazon.com Inc. AMZN +1.88%"This will ultimately be a tax on renewable energy."
online.wsj.com/article/SB10000872396390444082904577609254176643244.html
RETROACTIVE PENALTY surprise for those ignorant of the law; ignorance of a law is no excuse in a court of law
Obama may let this be final or may defer the ruling due Oct 31st 2012, just before the elections.
"... Nearly $930 million of Chinese solar cells were imported into the U.S. between February and May, according to the Commerce Department.
"... A Commerce Department spokesman said media coverage of its investigation into dumping allegations should have served as warning to buyers that tariffs were possible. The department is scheduled to make a final decision on its duties in October.
" ... The International Trade Commission has been conducting a parallel investigation to determine whether the U.S. solar manufacturing industry has been harmed by the alleged dumping and unfair subsidies. It may consider the impact of tariffs on end users as part is its review. Although the agencies are considered equal, the ITC has the authority to wipe out the entire case. Or, the commission could find that the duties are warranted but shouldn't be collected retroactively. The ITC will make its final decision in November.
" ... In rare cases, the ITC and the Commerce Department have agreed to slap retroactive duties on imports, a Commerce Department spokesman said.
================================
200% import duty on US solar panels from tariffs:
RETROACTIVE PENALTY
Businesses Burned by Surprise Solar Tax
U.S. businesses that bought solar panels made in China earlier this year are retroactively being hit with unexpected tax bills, as they find themselves caught in the middle of a trade fight between U.S. and Chinese manufacturers. Cassandra Sweet has details on The News Hub.
video:
live.wsj.com/video/businesses-burned-by-surprise-solar-tax/9FDBF84C-1FD4-450B-B3FE-CD28E8ED6609.html?link=MW_hp_tboverticalx8#!9FDBF84C-1FD4-450B-B3FE-CD28E8ED6609
===================================
August 24, 2012
Solar Flare-Up: Back Tax Roils U.S. Firms
U.S. businesses that bought solar panels made in China earlier this year are retroactively being hit with unexpected tax bills, as they find themselves caught in the middle of a trade fight between U.S. and Chinese manufacturers.
ProVision Solar co-owners Marco Mangelsdorf and Douglas Bath had to pay $138,000 in retroactive tariffs on a solar-panel shipment from China.
.
The unusual bills are the result of action by the U.S. Commerce Department, which slapped provisional antidumping duties of between 31% and nearly 250% on solar panels containing Chinese-made solar cells in May.
U.S. businesses that bought solar panels made in China earlier this year are retroactively being hit with unexpected tax bills, as they find themselves caught in the middle of a trade fight between U.S. and Chinese manufacturers. Cassandra Sweet has details on The News Hub.
.The U.S. government imposed the tariffs in response to a trade case started last year by the U.S. arm of German company SolarWorld AG SWV.XE -1.41%and six small U.S. solar firms. They accused Chinese solar-panel makers of receiving unfair government subsidies and selling their products in the U.S. at prices below the cost of production.
The trade case has stirred tensions between Washington and Beijing and divided the U.S. solar industry. It is also resulting in large import-tax bills for dozens of U.S. companies, many small and medium-sized, that bought solar panels from Chinese suppliers as much as three months before the trade decisions were issued. The Commerce Department made the tariffs retroactive by 90 days.
Marco Mangelsdorf, who co-owns a company in Hawaii, ProVision Solar Inc., that designs and installs rooftop solar-panel systems, has been fuming since he received a tax bill in June from U.S. Customs, saying that he owed more than $138,000. That is 250% more than what he paid for a shipment of panels he received in February from a Chinese supplier.
Mr. Mangelsdorf said he wasn't aware the tariffs could be retroactive, or so steep.
"If I had any clue that I would be on the hook for a 200-plus percent duty on this order, I would be a crazy man" to make it, Mr. Mangelsdorf said.
William Perry, a Seattle attorney who has been representing some of the companies facing the tariffs, has estimated that U.S. firms that imported Chinese solar panels could be on the hook for roughly $100 million in new import taxes.
Nearly $930 million of Chinese solar cells were imported into the U.S. between February and May, according to the Commerce Department. The Commerce Department decided to impose duties only on the value of Chinese-made solar cells, not on the glass and metal panels that contain them. The cells are the most costly component.
A Commerce Department spokesman said media coverage of its investigation into dumping allegations should have served as warning to buyers that tariffs were possible. The department is scheduled to make a final decision on its duties in October.
The International Trade Commission has been conducting a parallel investigation to determine whether the U.S. solar manufacturing industry has been harmed by the alleged dumping and unfair subsidies. It may consider the impact of tariffs on end users as part is its review. Although the agencies are considered equal, the ITC has the authority to wipe out the entire case. Or, the commission could find that the duties are warranted but shouldn't be collected retroactively. The ITC will make its final decision in November.
In rare cases, the ITC and the Commerce Department have agreed to slap retroactive duties on imports, a Commerce Department spokesman said.
Some of the U.S. companies ensnared in the tariff fight buy and sell specialized solar products that are easily found in China but almost nowhere else.
Lincoln Dahl of St. David, Ariz., owns a small company called African Energy that buys "off the grid" solar panels and other equipment that can generate electricity and can bypass a utility's electrical grid. It then exports the products to customers in Africa. These lower-voltage solar products, which provide energy directly to appliances such as televisions and lights, are available in sufficient quantity mainly from China, Mr. Dahl said.
The company, which has seven employees, had to pay more than $42,000 for tariffs equal to 31% of the value of a shipment of solar gear that Mr. Dahl received in May, days before the Commerce Department decision, plus countervailing duties of 3% tied to the effects of the government subsidies.
Solar-panel makers world-wide have seen their profits erode due to oversupply, which has come about amid a rapid build-out of manufacturing capacity, primarily in China. Prices have plunged, driving smaller solar-panel makers into bankruptcy and putting pressure on larger players to find new demand for their products.
SolarWorld, the company that pushed for the tariffs, maintains the case is only about leveling the playing field with China, not making trouble for U.S. buyers. Chinese manufacturers have distorted the solar market thanks to deep financial support from the Chinese government, argued Gordon Brinser, president of the company's U.S. branch, SolarWorld Industries America.
"Today, there is no free market in solar," he said. In July, SolarWorld's German business and other European solar firms filed a similar trade case against Chinese rivals in Europe.
The Chinese government criticized the U.S. tariff decision at the time as "protectionist" and "unreasonable. China's Commerce Ministry meanwhile has fought back with its own investigation. It is examining allegedly unfair subsidies and potential dumping by U.S. companies that export polysilicon, a raw material used in solar manufacturing.
The U.S. tariffs are based on inaccurate assumptions about China's solar manufacturing industry and don't take into account legitimate cost-cutting that Chinese manufacturers have been able to achieve, said Mark Kingsley, chief commercial officer of China-based Trina Solar Ltd. TSL -5.46%
As the two sides argue, U.S. firms stung by the tariffs are pressing the government to reverse or soften them.
"It's completely unfair," said Chris Greacen, who runs a small side business supplying solar-powered desk lamps and cell phone chargers made in China to U.S. retailers such as Amazon.com Inc. AMZN +1.88%"This will ultimately be a tax on renewable energy."
online.wsj.com/article/SB10000872396390444082904577609254176643244.html