A small group of local solar energy companies that paid import duties retroactively on photovoltaic panels shipped from China will have their payments refunded as the result of a ruling issued Wednesday by the U.S. International Trade Commission.
In a two-part ruling, the commission upheld duties on imports from Chinese manufacturers who were found responsible for harming the U.S. panel industry by dumping solar products in the United States below cost. However, the federal trade panel rejected a U.S. Commerce Department finding of "critical circumstances," which would have made the penalties retroactive.
The second part of the ruling was welcome news for Marco Mangelsdorf, a Hawaii island PV installer who testified against the retroactive tariffs at an commission hearing last month in Washington, D.C. ProVision Solar, owned by Mangelsdorf and Douglas Bath, paid the Commerce Department about $138,000 in duties for a shipment of panels from a manufacturer in Jiangsu province.
"This is beyond fantastic news," Mangelsdorf said. "I’ll never know what effect, if any, going to Washington and telling my story to the commissioners had on the outcome. But it gives me the feeling that one small business owner speaking up can make a positive difference."
All six members of the commission voted to support a Commerce Department decision to impose anti-dumping duties of up to 250 percent on imports of Chinese-made solar products. The commissioners voted 4-2 against making a determination of critical circumstances.
"As a result of the Commission’s negative determinations regarding critical circumstances, the antidumping and countervailing duty orders concerning those imports will not apply retroactively to goods that entered the United States prior to the date of publication in the Federal Register of the Department of Commerce’s affirmative preliminary determinations," according to a news release.
The department in June hit ProVision Solar and an estimated 100 other companies nationwide with retroactive import duties. Officials from the Hawaii Solar Energy Association said they were aware of only a small number of Hawaii PV installers that paid the duties as a result of the department’s preliminary ruling.
ProVision’s order for nearly 300 panels arrived in March, costing roughly $54,000. On June 6, ProVision’s owners received a letter from the department telling them they owed the additional tariffs due to a May 17 preliminary anti-dumping decision.
The department’s finding of critical circumstances allowed tariffs to be imposed retroactively on any shipment that arrived 90 days before the ruling was issued.
Gary Hamakawa, a Honolulu-based customs broker, said the ruling is a relief to ProVision Solar and other local PV installers caught in the trade dispute.
"The retroactivity was a major issue. The ruling is especially good for Marco because he stood to lose a lot," Hamakawa said.
