Commerce Department Initiates Circumvention Investigation on Solar Cells and Modules Exported from Malaysia, Thailand, Vietnam, and Cambodia Containing Parts and Components Produced in China - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On March 28, 2022, the Department of Commerce (“DOC”) initiated a country-wide circumvention investigation on Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, from the People’s Republic of China (“CSPV”), which are further processed in Malaysia, Thailand, Vietnam, and/or Cambodia prior to exportation to the United States. The investigation was requested in a petition filed by Auxin Solar Inc. The petition alleged that CSPV producers are completing production in these third countries to circumvent the antidumping duty (“ADD”) and countervailing duty (“CVD”) Orders on CSPV cells and modules from China. This investigation covers all CSPV cells and modules that have been completed in these four countries using parts and components from China and are exported from these countries to the United States. This investigation is not limited to any specific manufacturer or group of manufacturers (i.e., Chinese-owned companies).
Under the DOC’s current practice CSPV containing Chinese wafers which are doped (i.e., p-n junction created) outside of China are not subject to the Chinese ADD/CVD Orders. If the DOC issues an affirmative determination in this case, CSPV exported from these countries which contain significant Chinse inputs – e.g., polysilicon, wafers, ingots, framing, glass, wires, EVA, silver paste, backsheets, silicone sealant, junction boxes, and inverters – could be subject to the China ADD/CVD Orders, even if the wafers are doped in one of these countries.
Important information on retroactivity: Upon publication of the Notice of Initiation, the DOC will instruct Customs and Border Protection (“CBP”) to continue the suspension of liquidation for any entries that were already suspended. Furthermore, if there is an affirmative preliminary determination of circumvention, the DOC will instruct CBP to suspend liquidation and require a cash deposit of estimated duties of all unliquidated entries retroactive to the date of publication of the notice of initiation. The DOC also has the authority to retroactively suspend liquidation prior to the initiation publication date based upon a request made by an interested party, or at its discretion. The Preliminary Determination is expected 150 days from the publication of initiation (i.e., last week of August 2022). The Final Determination is expected 150 days thereafter (i.e., end of January 2023).
The DOC intends to release CBP import data shortly after the initiation is published, and after reviewing comments, to issue quantity and value (“Q&V”) questionnaires to CSPV exporters from the four countries. Commerce intends to select mandatory respondents whose production processes will be subject to extensive examination based on responses to the Q&V questionnaires.
In light of the potential broad reach and retroactive impact of these investigations, all companies importing solar module products from Malaysia, Thailand, Vietnam, and Cambodia should promptly evaluate their supply chain and potential exposure for antidumping and countervailing duties.
We are available to advise companies on the potential impact of this circumvention investigation. Please feel free to contact Erik Smithweiss or any other attorney in our firm if you have questions or require assistance.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Cut-to-Length Carbon-Quality Steel Plate From Korea: Notice of Court Decision Not in Harmony With the Results of Countervailing Duty Administrative Review; Notice of Amended Final Results
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Superabsorbent Polymers From the Republic of Korea: Postponement of Preliminary Determination in the Less-Than-Fair-Value Investigation
• Investigations; Determinations, Modifications, and Rulings, etc.: Welded Stainless Steel Pressure Pipe From India; Scheduling of Expedited Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Walk-Behind Snow Throwers and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination
• Certain Lined Paper Products From India: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2019-2020
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Certain Walk-Behind Snow Throwers and Parts Thereof From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Digital Video-Capable Devices and Components Thereof; Notice of a Commission Determination Finding No Violation of Section 337; Termination of the Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses From the People's Republic of China: Final Results of Expedited Second Sunset Review of the Countervailing Duty Order
• Large Power Transformers From the Republic of Korea: Amended Final Results of Antidumping Duty Administrative Review; 2019-2020
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Variable Speed Wind Turbine Generators and Components Thereof; Commission Determination To Grant Respondents' Motion for Leave To Submit a Petition for Reconsideration Out of Time and Respondents' Petition for Reconsideration; Issuance of Corrected Commission Opinion
• Monosodium Glutamate From the Republic of Indonesia: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Emulsion Styrene-Butadiene Rubber From the Czech Republic and the Russian Federation: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Seamless Refined Copper Pipe and Tube From China and Mexico; Scheduling of Expedited Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of Korea, Mexico, and the Republic of Turkey: Continuation of the Antidumping Duty Orders and Countervailing Duty Order
• Certain Carbon and Alloy Steel Cut-to-Length Plate From the Republic of Korea: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order
• Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty and Countervailing Duty Orders
• Heavy Forged Hand Tools, Finished or Unfinished, With or Without Handles From the People's Republic of China: Final Results of the Expedited Fifth Sunset Review of the Antidumping Duty Orders
• Steel Concrete Reinforcing Bar From the Republic of Turkey: Final Results of Antidumping Duty Administrative Review and Final Determination of No-Shipments; 2019-2020; Second Correction
• Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Advance Notification of Sunset Review
• Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review and Join Annual Inquiry Service List
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Carbon and Alloy Steel Cut-to-Length Plate From Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, South Africa, South Korea, Taiwan, and Turkey; Notice of Commission Determination To Conduct Full Five-Year Reviews
• Sulfanilic Acid From China and India; Institution of Five-Year Reviews
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FTC Sues Intuit for Its Deceptive TurboTax “free” Filing Campaign - Federal Trade Commission
The Federal Trade Commission is taking action against Intuit Inc., the maker of the popular TurboTax tax filing software, by issuing an administrative complaint against the company for deceiving consumers with bogus advertisements pitching “free” tax filing that millions of consumers could not use. In addition, to prevent ongoing harm to consumers rushing to file their taxes, the Commission also filed a federal district court complaint asking a court to order Intuit to halt its deceptive advertising immediately.
The Commission alleges that the company’s ubiquitous advertisements touting their supposedly “free” products—some of which have consisted almost entirely of the word “free” spoken repeatedly—mislead consumers into believing that they can file their taxes for free with TurboTax. In fact, most tax filers can’t use the company’s “free” service because it is not available to millions of taxpayers, such as those who get a 1099 form for work in the gig economy, or those who earn farm income. In 2020, for example, approximately two-thirds of tax filers could not use TurboTax’s free product.
“TurboTax is bombarding consumers with ads for ‘free’ tax filing services, and then hitting them with charges when it’s time to file,” said Samuel Levine, Director of the Bureau of Consumer Protection. “We are asking a court to immediately halt this bait-and-switch, and to protect taxpayers at the peak of filing season.”
As detailed in the complaint, Intuit engaged in a years-long marketing campaign centered on the promise of “free” services. These ads have run during major events, including the Super Bowl, and have also aired during this year’s NCAA Basketball Tournament.
In spite of this advertising, many consumers who took the time to gather their documents, entrust their personal information to Intuit, and begin the filing process found that they could not file their taxes for free.
For example, in at least one ad a disclaimer appeared on the screen while an announcer said “That’s right, TurboTax Free is free. Free, free free free.”
This year, consumers whose adjusted gross income is $73,000 or less can use products in the IRS Free File Program, which are offered by several different companies, to file their federal tax return and, in some instances, state tax return, entirely for free. More information about the Free File Program is available at irs.gov/freefile.
The Commission is asking a federal court to put an immediate halt to Intuit’s false advertising and has also authorized the filing of an administrative complaint alleging that the company’s practices are illegal. Both complaints allege that Intuit’s practices violate the FTC Act.
The Commission vote authorizing the staff to file both the administrative complaint and federal court complaint seeking preliminary relief was 3-1, with Commissioner Noah J. Phillips dissenting.
NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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Certain Mobile Access Equipment and Subassemblies from China Threaten U.S. Industry, says USITC - U.S. International Trade Commission
The United States International Trade Commission (USITC) today determined that U.S. industry is threatened with material injury by reason of imports of certain mobile access equipment and subassemblies from China that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the affirmative.
As a result of the Commission’s affirmative determination, Commerce will issue antidumping duty orders on imports of this product from China.
The Commission’s public report Certain Mobile Access Equipment and Subassemblies from China (Inv. No. 731-TA-1557 (Final), USITC Publication 5317, April 2022) will contain the views of the Commission and information developed during the investigations.
The report will be available by April 14, 2022; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
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UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Certain Mobile Access Equipment and Subassemblies Thereof from China
Investigation No. 731-TA-1557 (Final)
Product Description: Mobile access equipment (MAE) consists primarily of boom lifts, scissor lifts, and telehandlers, and subassemblies thereof. MAE combines a mobile (self-propelled or towed) chassis, with a lifting device (e.g., scissor arms, boom assemblies) for mechanically lifting persons, tools and/or materials capable of reaching a working height of ten feet or more, and a coupler that provides an attachment point for the lifting device, in addition to other components. MAE includes mobile access equipment and subassemblies thereof whether finished or unfinished, whether assembled or unassembled, and whether the equipment contains any additional features that provide for functions beyond the primary lifting function.
Status of Proceedings:
1. Type of investigation: Final antidumping duty investigation.
2. Petitioner: The Coalition of American Manufacturers of Mobile Access Equipment (“CAMMAE” or “the Coalition”).
3. USITC Institution Date: Friday, February 26, 2021.
4. USITC Hearing Date: Tuesday, October 12, 2021.
5. USITC Vote Date: Thursday, March 24, 2022.
6. USITC Notification to Commerce Date: Friday, April 8, 2022.
U.S. Industry in 2020:
1. Number of U.S. producers: 8.
2. Location of producers’ plants: California, Kansas, Michigan, Nevada, Ohio, Oklahoma, Pennsylvania, Washington, and Wisconsin.
3. Production and related workers: [1]
4. U.S. producers’ U.S. shipments: [1]
5. Apparent U.S. consumption: [1]
6. Ratio of subject imports to apparent U.S. consumption: [1]
U.S. Imports in 2020:
1. Subject imports: $122.9 million
2. Nonsubject imports: $588.6 million
3. Leading import sources: Canada, China, and the United Kingdom.
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Shipping Equipment Giants Cargotec and Konecranes Abandon Merger After Justice Department Threatens to Sue - Department of Justice
Deal Would Have Eliminated Competition for Shipping Container Handling Equipment and Harmed the Global Supply Chain
Cargotec Corporation (Cargotec) confirmed today that it has abandoned its intended merger of equals with Konecranes Plc (Konecranes) one day after the Justice Department’s Antitrust Division informed the parties that the settlement proposal was not sufficient to address concerns that the proposed combination would eliminate important competition in four types of shipping container handling equipment used by port customers to move goods in the global supply chain.
“The Justice Department’s Antitrust Division will vigorously investigate potential violations of our antitrust laws, no matter the industry, no matter the company, and no matter the individual,” said Attorney General Merrick B. Garland. “The proposed merger of these two shipping equipment giants would have harmed American consumers. It threatened the global supply chain and the free and fair markets upon which the integrity of our economy depends. I commend the outstanding work of our Antitrust attorneys and investigators that led to this outcome and the cooperation of our enforcement partners around the world.”
“Cargotec’s and Konecranes’ proposed merger threatened to harm competition in the sale of container handling equipment to U.S. port customers and terminal operators that move consumer products, medicines, and other important goods through the global supply chain,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The combination of Cargotec and Konecranes would have been the culmination of decades of consolidation — and the companies proposed to accomplish it by extracting and retaining the strongest parts of both businesses and selling off the least desirable assets to placate the department. But the Clayton Act is clear: acquisitions that create or entrench market power are illegal. The department will not accept patchwork settlements that do not replace the competition that is lost by a merger.”
The proposed transaction would have eliminated intense competition between Cargotec and its closest rival, Konecranes, in markets that are already highly concentrated. In particular, the merger would have led to illegal consolidation in the manufacture and supply of four types of container handling equipment: straddle carriers, rubber-tired gantry cranes, automated stacking cranes, and rail-mounted gantry cranes. Each piece of equipment has a unique design that allows the equipment to move containers between different modes of transportation in the supply chain. Cargotec and Konecranes are also at the forefront of automating port operations and reducing carbon emissions by electrifying equipment — megatrends that are likely to drive purchasing decisions from port customers in the coming years.
The department expresses thanks to its enforcement partners, including the Australian Competition and Consumer Commission, the European Commission, and the United Kingdom’s Competition and Markets Authority, for their close and constructive collaboration on this matter.
Cargotec Corporation, operating under the Finnish name Cargotec Oyj, is a public limited company headquartered in Helsinki, Finland. Cargotec earned revenues of approximately $900 million in the United States in 2021.
Konecranes Plc, operating under the Finnish and Swedish names Konecranes Oyj and Konecranes Abp, is a Finnish public limited company headquartered in Hyvinkää, Finland. Konecranes earned revenues of approximately $1.1 billion in the Americas in 2021.
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Identity Theft: Report Identity Theft and Get a Recovery Plan - Federal Trade Commission
IdentityTheft.gov is the federal government’s one-stop resource for identity theft victims. The site provides streamlined checklists and sample letters to guide you through the recovery process.
Visit ftc.gov/idtheft for prevention tips and free resources to share in your community.