Trina Solar responds to Commerce Department’s preliminary duty

Trina Solar responds to Commerce Department’s preliminary dutyOn March 20, the U.S. Department of Commerce announced that it was imposing preliminary countervailing duties on Chinese PV manufacturers. The duties will force Chinese PV manufacturers to pay relatively small fines on their imports because of allegedly unfair trade practices that artificially lowered the prices of their modules below that of competitors.

The highest such duties were assessed to Trina Solar Ltd.

Under the preliminary duties, the Commerce Department imposed a 4.73 percent countervailing duty on Trina Solar’s imports to the U.S. The duty was imposed retroactively to December 2011, meaning that the company will have to set aside funds to cover the amount of the duties for the products it’s imported from then until the trade case and the actual amount of the countervailing duty is decided.

While Trina’s was the highest, the department also imposed such duties on all Chinese PV imports. Suntech received the lowest duty at 2.9 percent, and all other Chinese PV manufacturers received an average 3.59 percent duty.

The trade dispute was originally brought by the Coalition for American Solar Manufacturing, led by SolarWorld Industries America. But the dispute has been contended even by PV manufacturers and other solar industry players in the U.S.

“Unfortunately it has consumed a lot of time and attention when we should be focused on how to drive down the cost of solar,” said Michael Grunow, marketing director for Trina Americas.

He would not comment on whether Trina was pleased or displeased, saying it was too early to really tell what the impact would be.

“We’re convinced that the Department of Commerce is doing thorough analysis, and we’ve been complying with all their requests,” he said.

Grunow stressed that this is a preliminary duty and only half of a larger trade dispute. The second half, which is evaluating whether Chinese companies dumped excess modules in the U.S. is still being determined.

Whatever happens, Trina is likely to keep selling in the U.S.

“We are committed to complying with any ruling that comes down the pipe because we’re committed to the U.S. market. We’re committed to it and are going to be in it for the long run,” he said.

The company has been conservative and has the capital to respond to a range of possibilities, he said.