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

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Text

[Federal Register Volume 87, Number 27 (Wednesday, February 9, 2022)]

[Presidential Documents]

[Pages 7357-7362]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2022-02906]

Presidential Documents

Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 /

Presidential Documents

___________________________________________________________________

Title 3--

The President

[[Page 7357]]

Proclamation 10339 of February 4, 2022

To Continue Facilitating 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), the President issued Proclamation 9693,

imposing 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 all imports

of other CSPV products, including modules provided for

in subheading 8541.40.6015 of the HTS. Proclamation

9693 exempted imports from certain designated

beneficiary countries under the Generalized System of

Preferences from the application of the safeguard

measure.

xceeding the TRQ and all imports

of other CSPV products, including modules provided for

in subheading 8541.40.6015 of the HTS. Proclamation

9693 exempted imports from certain designated

beneficiary countries under the Generalized System of

Preferences from the application of the safeguard

measure.

2. Clause (4) and Annex I of Proclamation 9693 directed

the United States Trade Representative (USTR) to

establish procedures for interested persons to request

the exclusion of particular products from the safeguard

measure. These provisions also authorized the USTR, in

consultation with the Secretary of Commerce and the

Secretary of Energy, to determine whether a particular

product should be excluded, and, upon publication of a

determination in the Federal Register, to modify the

HTS to implement such determination. Furthermore, they

authorized the USTR to modify or to terminate such

determinations. Effective June 13, 2019, the USTR

excluded bifacial solar panels that absorb light and

generate electricity on each side of the panel and that

consist of only bifacial solar cells that absorb light

and generate electricity on both sides of the cells

(bifacial modules). Exclusion of Particular Products

From the Solar Products Safeguard Measure, 84 FR 27684

(June 13, 2019).

light and

generate electricity on each side of the panel and that

consist of only bifacial solar cells that absorb light

and generate electricity on both sides of the cells

(bifacial modules). Exclusion of Particular Products

From the Solar Products Safeguard Measure, 84 FR 27684

(June 13, 2019).

3. On February 7, 2020, the United States International

Trade Commission (USITC) 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 (USITC, 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 USITC found that, following imposition of the

safeguard measure, prices for CSPV cells and modules

declined in a manner consistent with historical trends,

but that prices were higher than they would have been

without the safeguard measure.

4. On March 6, 2020, the USITC issued an additional

report pursuant to a request from the USTR 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

[[Page 7358]]

t pursuant to a request from the USTR 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

[[Page 7358]]

2.5 gigawatts (GW) to 4.0, 5.0, or 6.0 GW (USITC,

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 USITC 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 cells made in the

United States.

5. After taking into account the information provided

in the USITC'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, and under section 204(b)(1)(B) of the

Trade Act (19 U.S.C. 2254(b)(1)(B)), the President

issued Proclamation 10101 on October 10, 2020, in which

he determined that the domestic industry has begun to

make a positive adjustment to import competition, as

shown by the increases in domestic module production

capacity, production, and market share. Proclamation

10101 also:

)), the President

issued Proclamation 10101 on October 10, 2020, in which

he determined that the domestic industry has begun to

make a positive adjustment to import competition, as

shown by the increases in domestic module production

capacity, production, and market share. Proclamation

10101 also:

(a) revoked the exclusion of bifacial modules from

application of the safeguard measure on the basis that

it had impaired and was likely to continue to impair

the effectiveness of the safeguard action; and

(b) adjusted the safeguard tariff for the fourth

year of the safeguard measure from 15 percent to 18

percent on the basis that the exclusion of bifacial

modules from application of the safeguard tariffs had

impaired the remedial effectiveness of the 4-year

action proclaimed in Proclamation 9693, and to achieve

the full remedial effect envisaged in that action.

6. On November 16, 2021, the United States Court of

International Trade held in Solar Energy Industries

Association et al. v. United States (SEIA) that the

President acted outside of his statutory authority in

issuing Proclamation 10101, and enjoined the Government

from enforcing that proclamation. This injunction had

the effect of reinstating the exclusion of bifacial

modules from the safeguard tariffs and lowering the

fourth year safeguard tariff to 15 percent. On January

14, 2022, the Government filed a notice of appeal of

SEIA to the United States Court of Appeals for the

Federal Circuit.

his injunction had

the effect of reinstating the exclusion of bifacial

modules from the safeguard tariffs and lowering the

fourth year safeguard tariff to 15 percent. On January

14, 2022, the Government filed a notice of appeal of

SEIA to the United States Court of Appeals for the

Federal Circuit.

7. On December 8, 2021, in response to petitions by

representatives of the domestic industry, the USITC

issued its determination and report pursuant to section

204(c) of the Trade Act (19 U.S.C. 2254(c)), finding

that safeguard action continues to be necessary to

prevent or remedy the serious injury to the domestic

industry, and that there is evidence that the domestic

industry is making a positive adjustment to import

competition (USITC, Crystalline Silicon Photovoltaic

Cells, Whether or Not Partially or Fully Assembled Into

Other Products, Investigation No. TA-201-75

(Extension)).

8. Section 203(e)(1)(B) of the Trade Act (19 U.S.C.

2253(e)(1)(B)) authorizes the President, after

receiving an affirmative determination from the USITC

pursuant to section 204(c) of the Trade Act (19 U.S.C.

2254(c)), to extend the effective period of any action

taken under section 203 of the Trade Act if the

President determines that the action continues to be

necessary to prevent or remedy the serious injury, and

there is evidence that the domestic industry is making

a positive adjustment to import competition.

2254(c)), to extend the effective period of any action

taken under section 203 of the Trade Act if the

President determines that the action continues to be

necessary to prevent or remedy the serious injury, and

there is evidence that the domestic industry is making

a positive adjustment to import competition.

9. After taking into account the information provided

in the USITC's report and the information received from

the public through the process published in the Federal

Register on September 30, 2021 (86 FR 54279), pursuant

to section 203(e)(1)(B) of the Trade Act (19 U.S.C.

2253(e)(1)(B)), I have determined that the safeguard

action on imports of CSPV cells, whether or not

partially or fully assembled into other products,

continues to be necessary to prevent or remedy the

serious injury to the domestic industry, and that there

is evidence that the domestic industry is making a

positive adjustment to import competition. I have

further determined to extend the safeguard measure

proclaimed in Proclamation 9693, as modified by

Proclamation 10101 (to the extent permitted by law), as

follows:

[[Page 7359]]

ry, and that there

is evidence that the domestic industry is making a

positive adjustment to import competition. I have

further determined to extend the safeguard measure

proclaimed in Proclamation 9693, as modified by

Proclamation 10101 (to the extent permitted by law), as

follows:

[[Page 7359]]

(a) continuation of the TRQ on imports of solar

cells not partially or fully assembled into other

products described in paragraph 1 of this proclamation

for an additional period of 4 years, with unchanging

within-quota quantities of 5.0 GW for each year and

annual reductions in the rates of duty applicable to

goods entered in excess of those quantities of cells in

the fifth, sixth, seventh, and eighth years, as

described in Annex I to this proclamation;

(b) continuation of the increase in duties on

imports of modules described in paragraph 1 of this

proclamation for an additional period of 4 years, with

annual reductions in the fifth, sixth, seventh, and

eighth years, as described in Annex I to this

proclamation; and

(c) exclusion of bifacial panels from the extension

of duties proclaimed in this paragraph.

10. I have determined that an extension of this

safeguard measure will provide greater economic and

social benefits than costs.

11. As provided in Proclamation 9693, this safeguard

measure shall continue to apply to imports from all

countries, except as provided in clause (4) of this

proclamation and paragraph 10 of Proclamation 9693.

n of this

safeguard measure will provide greater economic and

social benefits than costs.

11. As provided in Proclamation 9693, this safeguard

measure shall continue to apply to imports from all

countries, except as provided in clause (4) of this

proclamation and paragraph 10 of Proclamation 9693.

12. Section 204(a)(2) of the Trade Act (19 U.S.C.

2254(a)(2)) requires the USITC to issue a report on its

monitoring of developments with respect to the domestic

industry, including the progress and specific efforts

made by workers and firms in the domestic industry to

make a positive adjustment to import competition, no

later than the midpoint of the period of the extension.

After I receive that report, I will evaluate whether to

reduce, modify, or terminate the safeguard measure

pursuant to section 204(b)(1) of the Trade Act (19

U.S.C. 2254(b)(1)).

13. As proclaimed in Proclamation 9693, the in-quota

quantity in each year of the TRQ described in paragraph

9 of this proclamation shall be allocated among all

countries except those countries the products of which

are excluded from such TRQ pursuant to clause (4) of

this proclamation or paragraph 10 of Proclamation 9693.

14. In order to address certain technical errors in the

HTS, the HTS is modified as set forth in Annex II to

this proclamation.

ng all

countries except those countries the products of which

are excluded from such TRQ pursuant to clause (4) of

this proclamation or paragraph 10 of Proclamation 9693.

14. In order to address certain technical errors in the

HTS, the HTS is modified as set forth in Annex II to

this proclamation.

15. 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, JOSEPH R. BIDEN JR., President of

the United States of America, by the authority vested

in me by the Constitution and the laws of the United

States, including sections 203, 204, and 604 of the

Trade Act, do proclaim that:

(1) In order to extend the measure applicable to

imports of CSPV cells, not partially or fully assembled

into other products, described in paragraph 1 of this

proclamation, subchapter III of chapter 99 of the HTS

is modified as set forth in Annex I to this

proclamation, subject to clauses (3) and (4) below. Any

merchandise subject to the safeguard measure that is

admitted into United States foreign trade zones on or

after 12:01 a.m

n paragraph 1 of this

proclamation, subchapter III of chapter 99 of the HTS

is modified as set forth in Annex I to this

proclamation, subject to clauses (3) and (4) below. Any

merchandise subject to the safeguard measure that is

admitted into United States foreign trade zones on or

after 12:01 a.m. eastern standard time on February 7,

2022, must be admitted as ``privileged foreign status''

as defined in 19 CFR 146.41, and will be subject upon

entry for consumption to any tariffs or quantitative

restrictions related to the classification under the

applicable HTS subheading.

(2) Except as provided in clause (3) below, imports

of CSPV products of World Trade Organization Member

countries, as listed in subdivision (b) of Note 18 to

subchapter III of chapter 99 of the HTS (Note 18),

shall continue to be excluded from the safeguard

measure extended by this proclamation, and such imports

shall not be counted toward the TRQ limits that trigger

the over-quota rates of duties.

[[Page 7360]]

(3) If, after the extension proclaimed herein is in

effect, the USTR determines that:

(a) the share of total imports of a country listed in subdivision (b) of

Note 18 exceeds 3 percent;

(b) imports of the product from all listed countries with less than 3

percent import share collectively account for more than 9 percent of total

imports of the product; or

(3) If, after the extension proclaimed herein is in

effect, the USTR determines that:

(a) the share of total imports of a country listed in subdivision (b) of

Note 18 exceeds 3 percent;

(b) imports of the product from all listed countries with less than 3

percent import share collectively account for more than 9 percent of total

imports of the product; or

(c) a country listed in subdivision (b) of Note 18 is no longer a

developing country for purposes of this proclamation;

the USTR is authorized, upon publication of a notice in

the Federal Register, to revise subdivision (b) of Note

18 to remove the relevant country from the list or

suspend operation of that subdivision, as appropriate.

(4) I instruct the USTR to enter into negotiations

pursuant to section 203(f) of the Trade Act (19 U.S.C.

2253(f)) with Canada and Mexico. In the event that the

USTR concludes an agreement that the USTR, in

consultation with the Secretary of Commerce and the

Secretary of Energy, determines will ensure that

imports of Canada or Mexico do not undermine the

effectiveness of the action extended through clause (1)

of this proclamation, the USTR is authorized, upon

publication of a notice in the Federal Register, to

revise Note 18 to suspend application of that

subdivision, in whole or in part, as appropriate, with

respect to imports of Canada or Mexico

effectiveness of the action extended through clause (1)

of this proclamation, the USTR is authorized, upon

publication of a notice in the Federal Register, to

revise Note 18 to suspend application of that

subdivision, in whole or in part, as appropriate, with

respect to imports of Canada or Mexico. If the USTR

subsequently determines, in consultation with the

Secretary of Commerce and the Secretary of Energy, that

such an agreement is not effective, the USTR is

authorized, pursuant to section 203(f) of the Trade

Act, by publication of a notice in the Federal

Register, to revise Note 18 to terminate any previous

suspension of the action with respect to imports of

Canada or Mexico.

(5) One year after the termination of the safeguard

measure established in this proclamation, the U.S. note

and tariff provisions established in Annex I to this

proclamation shall be deleted from the HTS.

(6) 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.

IN WITNESS WHEREOF, I have hereunto set my hand this

fourth day of February, in the year of our Lord two

thousand twenty-two, and of the Independence of the

United States of America the two hundred and forty-

sixth.

(Presidential Sig.)

Billing code 3395-F2-P

[[Page 7361]]

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[[Page 7362]]

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[GRAPHIC] [TIFF OMITTED] TD09FE22.015

thousand twenty-two, and of the Independence of the

United States of America the two hundred and forty-

sixth.

(Presidential Sig.)

Billing code 3395-F2-P

[[Page 7361]]

[GRAPHIC] [TIFF OMITTED] TD09FE22.013

[[Page 7362]]

[GRAPHIC] [TIFF OMITTED] TD09FE22.014

[GRAPHIC] [TIFF OMITTED] TD09FE22.015

[FR Doc. 2022-02906

Filed 2-8-22; 8:45 am]

Billing code 7020-02-C

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