Kabir's Econ Blog

October 3, 2009

Initiative Blog-Solar Panel Tariff

Filed under: Uncategorized — kabir1892 @ 5:37 am

us-china

Solar Panel Tariff May Further Strain U.S.-China Trade

http://www.nytimes.com/2009/10/01/business/global/01tariff.html?_r=1&ref=business

Solar panel imports cause the United States to face $70 million in tariffs. This could cause an effect on the solar makers and the foreign and American distributors. With this in mind, the trade relationship that China and the US have can be strained. The agreement of the tariff to import solar panels from China happened on January 9th when the agency replied by saying that the “panels had become too sophisticated to qualify for duty free import”. But since the solar panels contained a electronic device that was used for safety and energy efficiency, it was used as a electric generator, causing a duty of 2.5%. This is a relatively good duty on imports since China had announced a 35% tariff on tires.

Even though this is true, even a small amount amount of duty can cause problems for global solar industries. This is because manufacturers of these panels are losing money since the competition is getting larger in China, and also because of the fall in prices. Unpaid duties have risen due to this, as well as penalties which are likely to double the cost.

The amount of solar panel that the US has imported and exported has been around the same in the first seven months. The Solar Energy Industries Association (China’s largest solar panel makers) say that the American tariffs on solar panels can cause other countries to impose tariffs as well on American exports.

To solve this problem, suggestions have come up. The decision was to divide the industries between the producers of solar equipment and importers in the United States. 

To avoid duties in the future, Chinese solar panel manufacturers are planning on changing solar modules to pants in the United States.

Duties are usually implemented on solar panels that have power on a electrical system. An example of this is built in lights which are considered as being electric lights and are subjected to have a tariff of 3.9%.

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