Industrial & Specialty Printing - July/August 2012 - 28

Feds Enforce Duties on Chinese Solar Imports

In the wake of affirmative preliminary antidumping (AD) and countervailing duty (CVD) determinations by the Department of Commerce, some Chinese solar-cell and panel exporters are reportedly planning to evade lawfully owed AD and CVD duties of up to 250%, according to the Coalition for American Solar Manufacturing (CASM). Any attempt to evade the AD/CVD orders will not be effective, could be illegal, and may expose U.S. importers, in addition to Chinese exporters, to liability under U.S. law, including significant financial penalties and criminal prosecution, according to CASM. U.S. Customs and Border Protection (CBP) has begun collecting cash deposits or bonds to secure estimated AD and CVD duties on imports of solar cells and modules from China, based on the affirmative preliminary determinations by Commerce in the AD and CVD investigations of Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules, from the People’s Republic of China. AD duties at rates up to 249.96% and CVD duties at rates up to 4.73% currently apply to all Chinese solar cells and modules that entered the United States, respectively, on or after Feb. 25, 2012, or Dec. 27, 2011. Certain Chinese producers/exporters are subject to an AD duty rate of 31%. All other Chinese exporters are subject to the 249.96 percent rate. Chinese imports from Dec. 27 through Feb. 26, are subject to CVD duties only. Chinese imports starting Feb. 27 are subject to both AD and CVD duties. By law, the U.S. importer of record is responsible for posting AD and CVD duties. The exporter may not reimburse these duties. If an exporter reimburses the U.S. importer, the amount of duties owed by the importer will double. The actual amounts of duties that will be owed on Chinese solar cells and modules will not be known until the first administrative reviews of the orders are completed.

Konarka Files for Chapter 7 Bankruptcy Protection
Lowell, MA-based Konarka Technologies, Inc., a leading developer of thin-film solar panels, has filed for bankruptcy protection under Chapter 7 of the federal bankruptcy laws. Under chapter 7 proceedings, the company’s operations cease and a trustee is tasked with liquidating the company’s assets for the benefit of creditors. Creditors will be asked to submit their claims to the Bankruptcy Court and are unable to obtain payment from the company. Howard Berke, chairman, president, and CEO of Konarka, said, “Konarka has been unable to obtain additional financing, and given its current financial condition, it is unable to continue operations. This is a tragedy for Konarka’s shareholders and employees and for the development of alternative energy in the United States.” Konarka was founded by Berke and by Dr. Alan Heeger, the winner of the Nobel Prize for his work in conductive polymers. Among the company’s assets are hundreds of owned and licensed patents and patent applications in the field of solar energy and a manufacturing plant in New Bedford, MA. Berke noted that several large international companies had expressed interest in financing or acquiring the company. He further noted that, given the worldwide interest in the company, including from the Chinese government, the company had not entirely given up hope that a rescue financing or acquisition would emerge in the bankruptcy. Under Chapter 7 proceedings, however, any such transactions are evaluated by a trustee and not by the company itself. Further information about the company, including a copy of its petition in bankruptcy, is contained on Konarka’s Website, www.konarka.com.

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Industrial & Specialty Printing - July/August 2012

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