Canadian Solar, Inc. v United States, No. 21-1434 (Fed. Cir. 2022)
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Canadian Solar produces and exports certain crystalline silicon photovoltaic cells from China. The U.S. Department of Commerce, after an investigation, issued an order imposing a duty to counteract subsidies Canadian Solar received from the government of China. During its fourth administrative review of that countervailing duty order, Commerce determined that Canadian Solar received regionally specific electricity subsidies subject to countervailing duties under 19 U.S.C. 1677(5A)(D)(iv); Commerce identified electricity price variation across the different provinces and applied adverse facts available—due to the central government of China’s failure to cooperate in Commerce’s investigation—to conclude that the central government sets variable electricity pricing that is region-specific for development purposes.
The Trade Court and Federal Circuit affirmed. The record supports Commerce’s conclusions. Commerce sufficiently and reasonably explained that it lacked key information because the government of China failed to cooperate by not acting to the best of its ability to comply with requests for information. As a result, Commerce was forced to fill informational gaps and properly relied on adverse inferences to find that Canadian Solar received a regionally specific electricity subsidy that must be countervailed.
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