The US Customs Department has launched an investigation into Waaree Energies, accusing the company of tax evasion. The company is suspected of selling solar cells and panels made in China in the US by falsely labeling them as 'Made in India'. Following this news, Waaree Energies' shares fell by over 6% today.
waaree energies: Solar company Waaree Energies is facing increased difficulties as the US Customs Department has initiated an investigation, accusing the company of tax evasion. The agency alleges that the company sold solar cells and panels manufactured in China in the US, falsely labeling them as 'Made in India'. Due to this news, Waaree Energies' shares dropped by ₹228 to ₹3,217.60.
Reason for the US Investigation
The US Customs Department alleges that Waaree Energies sold solar cells and panels manufactured in China in the US, labeling them as 'Made in India'. The US has long enforced strict tariff rules on dumping products from China. According to the department, Waaree failed to comply with anti-dumping and countervailing duties on certain imported products. This is why the investigation into the company has been initiated.
Memo from US Authorities
The US Customs and Border Protection department has sent a memo to Waaree and the lawyers of the American Alliance for Solar Manufacturing Trade Committee. This committee is an alliance of domestic solar manufacturers in the US. The memo states that Waaree's products were not subjected to appropriate duties, which constitutes a violation of US regulations.
Company's Stance
Waaree Energies stated that the company is taking steps to ensure compliance with US tax regulations. The company has initiated the process of depositing the necessary cash during the investigation. The company's lawyers and spokespersons were not immediately available to provide a detailed statement on the matter.
Import of Solar Panels from India to the US
Over the past two years, the US imposed tariffs on solar panels from Southeast Asian countries. Subsequently, the import of solar panels from India to the US increased. These panels hold a significant share in the US market. The US has had tariffs imposed on China for over a decade.
Impact on Shares
The news of the US Customs Department's investigation immediately impacted Waaree's shares. The company's shares were trading down by approximately 6.60% at ₹3,217.60 today. As of the time of reporting, a decline of about ₹228 was recorded in the shares.
Waaree Energies' Performance Over the Last Six Months
Despite the recent decline, the company's performance has been b over the past six months. Investors have received approximately 33% returns from Waaree's shares during this period. The company has recorded steady growth in the solar energy sector through its products and services.
Future of the Investigation and Potential Impact
The US Customs Department's investigation could prove challenging for Waaree Energies. If the allegations against the company are proven true, there could be financial and legal repercussions. Nevertheless, the company's products and projects will continue to operate in the US.
The business of Indian solar companies in the US is growing rapidly. Major players like Waaree Energies are playing a significant role in this sector. Adhering to tax regulations in the US is essential for these companies.
