The 201 tariff extension policy of the United States was initially implemented, which is conducive to the leading leader of globalization technology
On February 4, 2022, the Biden administration of the United States decided to extend the tariff of 201 originally scheduled to expire in February 2022: (1) extend the tariff of imported photovoltaic cells for 4 years, but there is an exemption of 5GW every year, and reduce the tax rate of cells exceeding the exemption year by year in the fifth to eighth years; (2) Extend the tariff of imported photovoltaic modules for 4 years and reduce the tax rate year by year in the fifth to eighth years; (3) Double sided components have immunity.
According to the exemption policy of 201 tariff on Southeast Asian origin and double-sided components, the main beneficiaries are the leading component integration enterprises that have built factories in Southeast Asia, such as Longi Green Energy Technology Co.Ltd(601012) , Ja Solar Technology Co.Ltd(002459) , Jingke energy, Trina Solar Co.Ltd(688599) . In addition, affected by the rise of the overall prosperity of the industrial chain, other beneficiaries include: inverter enterprises, such as Sungrow Power Supply Co.Ltd(300274) , Ginlong Technologies Co.Ltd(300763) ; Polysilicon enterprises, such as Tongwei Co.Ltd(600438) , poly GCL energy.
The extension decision is a continuation of the tariff policy in 2018, but it has been significantly eased
The Biden administration's decision to extend the tariff policy of the United States in 2018 is a continuation, but there has been a significant easing in the amount of single-sided exemption, tax rate and double-sided exemption. On January 23, 2018, the trump administration decided to impose 201 tariffs on imported battery chips and components and exempt double-sided components. In October 2020, the trump administration decided to withdraw the exemption of double-sided components and raise the tariff for the fourth year from 15% to 18%. In November 2021, the US Court of international trade ruled that the government announcement exceeded the statutory authority, recalled the tariff to 15%, and maintained the exemption of double-sided components.
Compared with a series of previous policies, the Biden administration's latest decision focuses on: (1) increasing the annual battery exemption from 2.5gw to 5GW; (2) Control the tax rate at 15% and reduce it year by year in 5-8 years; (3) The immunity of double-sided components is maintained. From the perspective of mitigation policy, it is obvious.
After the implementation of the policy, greater certainty is expected to improve the prosperity of the industry and benefit global photovoltaic enterprises
After the implementation of the policy, greater certainty is expected to improve the prosperity of the photovoltaic industry and benefit global photovoltaic enterprises. The tariff policy covers two types of immunity, namely, double-sided component immunity and origin immunity.
(1) the average annual new installed capacity of the United States in the next five years is expected to be 30GW, including about 21.5gw of utility grade, which can use exempted double-sided components; Industrial, commercial and household use is about 8.5gw, and 5GW tax-free single-sided battery quota can be applied. Therefore, the taxable part shall not exceed 3.5gW, and with the decline of double-sided cost, this part of single-sided components can also be replaced by double-sided components;
(2) in November 2021, the US Department of Commerce recognized that batteries and components originating in Southeast Asia could enjoy immunity. While Longi Green Energy Technology Co.Ltd(601012) , Ja Solar Technology Co.Ltd(002459) , Jingke energy, Atlas, Trina Solar Co.Ltd(688599) , poly GCL energy and other enterprises have built battery and component factories in Malaysia, Thailand, Vietnam and other places. Over quota components exported from Southeast Asian factories to the United States can effectively avoid tariff 201. With the formal implementation of the decision, the positive signal released by the policy content will effectively enhance the certainty of the photovoltaic industry chain, improve the prosperity of the industry, and benefit the component integration enterprises that have built factories in Southeast Asia in the early stage, as well as other global photovoltaic enterprises.
Risk tip: 201 tariff policy changes, the landscape of photovoltaic industry chain is less than expected, the construction of factories in Southeast Asia is less than expected, and the progress of double-sided modules is less than expected.
