To Further Facilitate Positive Adjustment to Competition From Imports of Certain Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or Fully Assembled Into Other Products)

Proclamation 10101 of October 10, 2020

To Further Facilitate Positive Adjustment to
Competition From Imports of Certain Crystalline Silicon
Photovoltaic Cells (Whether or Not Partially or Fully
Assembled Into Other Products)

By the President of the United States of America

A Proclamation

1. On January 23, 2018, pursuant to section 203 of the
Trade Act of 1974, as amended (the ``Trade Act'') (19
U.S.C. 2253), I issued Proclamation 9693, which imposed
a safeguard measure for a period of 4 years that
included both a tariff-rate quota (TRQ) on imports of
certain crystalline silicon photovoltaic (CSPV) cells,
not partially or fully assembled into other products,
provided for in subheading 8541.40.6025 of the
Harmonized Tariff Schedule of the United States (HTS)
and an increase in duties (safeguard tariff) on imports
of CSPV cells exceeding the TRQ and imports of other
CSPV products, including modules provided for in
subheading 8541.40.6015 of the HTS. I exempted imports
from certain designated beneficiary countries under the
Generalized System of Preferences from the application
of the safeguard measure.

2. On February 7, 2020, the United States International
Trade Commission (ITC) issued its report pursuant to
section 204(a)(2) of the Trade Act (19 U.S.C.
2254(a)(2)), on the results of its monitoring of
developments with respect to the domestic solar
industry (ITC, Crystalline Silicon Photovoltaic Cells,
Whether or Not Partially or Fully Assembled Into Other
Products: Monitoring Developments in the Domestic
Industry, No. TA-201-075 (Monitoring)). In its report,
the ITC found that, following imposition of the
safeguard measure, prices for CSPV cells and modules
declined in a manner consistent with historical trends
but were higher than they would have been without the
safeguard measure.

3. With respect to CSPV cells, the ITC found that
imports increased following imposition of the safeguard
measure and that major domestic CSPV cell producers
ceased production, leading to declines in domestic CSPV
cell production capacity and production.

4. With respect to CSPV modules, imports initially
declined but rose in the first half of 2019 compared
with the first half of 2018. Additionally, the ITC
found that multiple CSPV module producers opened
production facilities in the United States,
particularly in the first half of 2019, leading to
increases in domestic CSPV module production capacity,
production, and market share.

5. On March 6, 2020, the ITC issued an additional
report pursuant to a request from the United States
Trade Representative under section 204(a)(4) of the
Trade Act (19 U.S.C. 2254(a)(4)), regarding the
probable economic effect on the domestic CSPV cell and
module manufacturing industry of modifying the
safeguard measure to increase the level of the TRQ on
CSPV cells from the current 2.5 gigawatts (GW) to 4.0,
5.0, or 6.0 GW (ITC, Crystalline Silicon Photovoltaic
Cells, Whether or Not Partially or Fully Assembled Into
Other Products: Advice on the Probable Economic Effect
of Certain Modifications to the Safeguard Measure, No.
TA-201-075 (Modification)). In its report, the ITC
advised that increasing the TRQ would

help to continue growth in solar module production but
that expanded access to imported cells not subject to
safeguard duties would put downward pressure on prices
for United States cells.

6. The ITC also found that the exclusion of bifacial
modules from the safeguard measure will likely result
in substantial increases in imports of bifacial modules
if such exclusion remains in effect, and that such
modules will likely compete with domestically produced
CSPV products in the United States market. Furthermore,
the ITC found that the benefits to domestic CSPV module
producers from an increase in the TRQ would likely be
limited if the bifacial module exclusion remained in
place. According to the ITC, bifacial modules are
likely to account for a greater share of the market in
the future and can substitute for monofacial products
in the various market segments, such that exempting
imports of bifacial modules from the safeguard tariff
would apply significant downward pressure on prices of
domestically produced CSPV modules.

7. Section 204(b)(1)(B) of the Trade Act (19 U.S.C.
2254(b)(1)(B)) authorizes the President, upon petition
from a majority of the representatives of the domestic
industry, to reduce, modify, or terminate an action
taken under section 203 of the Trade Act when the
President determines that the domestic industry has
made a positive adjustment to import competition.

8. Section 204(c)(1) of the Trade Act (19 U.S.C.
2254(c)(1)) authorizes the President to request that
the ITC investigate whether action under section 203 of
the Trade Act continues to be necessary to prevent or
remedy serious injury and whether there is evidence
that the domestic industry is making a positive
adjustment to import competition. Section 204(c)(3) of
the Trade Act (19 U.S.C. 2254(c)(3)) establishes the
date by which the ITC will transmit the report on its
investigation, unless the President specifies a
different date.

9. After taking into account the information provided
in the ITC's reports, and after receiving a petition
from a majority of the representatives of the domestic
industry with respect to each of the following
modifications, I have determined that the domestic
industry has begun to make positive adjustment to
import competition, shown by the increases in domestic
module production capacity, production, and market
share. In addition, I have made the following further
determinations:

(a) that the exclusion of bifacial panels from
application of the safeguard tariff has impaired and is
likely to continue to impair the effectiveness of the
action I proclaimed in Proclamation 9693 in light of
the increased imports of competing products such
exclusion entails, and that it is necessary to revoke
that exclusion and to apply the safeguard tariff to
bifacial panels;
(b) that the exclusion of bifacial panels from
application of the safeguard tariffs has impaired the
effectiveness of the 4-year action I proclaimed in
Proclamation 9693, and that to achieve the full
remedial effect envisaged for that action, it is
necessary to adjust the duty rate of the safeguard
tariff for the fourth year of the safeguard measure to
18 percent.

10. Section 604 of the Trade Act (19 U.S.C. 2483)
authorizes the President to embody in the HTS the
substance of the relevant provisions of that Act, and
of other acts affecting import treatment, and actions
thereunder, including the removal, modification,
continuance, or imposition of any rate of duty or other
import restriction.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the
United States of America, acting under the authority
vested in me by the Constitution and the laws of the
United States, including but not limited to sections
203, 204, and 604 of the Trade Act, do proclaim that:

(1) In order to modify the action applicable to imports of CSPV cells under
HTS subheading 8541.40.6025 and other CSPV products such as modules under
HTS subheading 8541.40.6015, subchapter III of chapter 99 of the HTS is
modified as set forth in the Annex to this proclamation.

(2) The United States Trade Representative is authorized to exercise my
authority under section 204(c)(1) and (3) of the Trade Act to request that
the ITC investigate whether action under section 203 of the Trade Act
continues to be necessary to prevent or remedy serious injury and whether
there is evidence that the domestic industry is making a positive
adjustment to import competition, and to specify a different date for the
ITC to transmit its report.

(3) Any provision of previous proclamations and Executive Orders that is
inconsistent with the actions taken in this proclamation is superseded to
the extent of such inconsistency.

(4) The modifications to the HTS made by this proclamation, including the
Annex hereto, shall be effective with respect to goods entered for
consumption, or withdrawn from warehouse for consumption, on or after 12:01
a.m. eastern daylight time 15 days after the date of this proclamation, and
shall continue in effect as provided in the Annex to this proclamation,
unless such actions are earlier expressly reduced, modified, or terminated.
One year from the termination of the safeguard measure established in this
proclamation, the U.S. note and tariff provisions established in the Annex
to this proclamation shall be deleted from the HTS.

IN WITNESS WHEREOF, I have hereunto set my hand this
tenth day of October, in the year of our Lord two
thousand twenty, and of the Independence of the United
States of America the two hundred and forty-fifth.

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