Auxin Solar, a California-based solar panel manufacturer, has filed a lawsuit against the U.S. Department of Customs and Border Patrol (CBP) and the Department of Commerce. The lawsuit alleges that these departments have failed to enforce antidumping and countervailing duties (AD/CVD) on solar imports, as required by U.S. trade laws.
The conflict traces back to a petition filed by Auxin, which claimed that solar component suppliers in Vietnam, Cambodia, Thailand, and Malaysia were circumventing trade laws. These countries, responsible for approximately 80% of U.S. solar imports at the time, were accused of facilitating the entry of tariff-dodging goods from Chinese manufacturers into the U.S. market. Products found in violation of AD/CVD laws are subject to tariffs ranging from 50% to 250%.
In June 2022, President Joe Biden issued a two-year moratorium on solar tariffs, responding to concerns from the solar industry about the potential negative impacts of tariffs, including project delays and cancellations due to financial risks associated with tariff assessments.
Auxin’s lawsuit, filed on December 29, 2023, contends that the Departments of Commerce and CBP are not legally bound to adhere to Biden’s executive order. The company argues that the moratorium is an overreach of executive authority and that the Commerce Department’s actions to halt the application of AD/CVD tariffs, the liquidation of seized assets, and the collection of cash deposits for imported solar goods are unlawful. Auxin requests that the Court of International Trade overturn the moratorium, labeling it as “an abuse of discretion” by the Commerce Department.
The lawsuit also asserts that the Commerce Department’s actions have contributed to a market flooded with low-cost solar components. Auxin and its co-plaintiff, Concept Clean Energy, argue that the pause on tariff collection has infringed on their right to relief from what they perceive as unfairly priced Chinese products. This legal action highlights the ongoing debate and complexities surrounding the enforcement of trade laws in the renewable energy sector.
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