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), 65639-65642 [2020-23108]

Agencies

• Executive Office of the President

[Federal Register Volume 85, Number 201 (Friday, October 16, 2020)]
[Presidential Documents]
[Pages 65639-65642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23108]




                        Presidential Documents 



Federal Register / Vol. 85, No. 201 / Friday, October 16, 2020 / 
Presidential Documents

[[Page 65639]]


                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

[[Page 65640]]

                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.

[[Page 65641]]

(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.
                
                
                    (Presidential Sig.)

Billing code 3295-F1-P



[[Page 65642]]

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[FR Doc. 2020-23108
Filed 10-15-20; 8:45 am]
Billing code 7020-02-C