ITC to Recommend Additional Tariffs and Tariff-Rate Quotas on Solar Cells in Safeguard Investigation
The International Trade Commission on Oct. 31 announced recommendations for additional tariffs and quotas that it will forward to President Donald Trump as part of its Section 201 safeguard investigation on crystalline silicon photovoltaic cells, the ITC said in a press release. Three of the four commissioners recommended new tariff rate quotas on solar cells, as well as additional tariffs on solar panels, set to decrease each year the safeguards remain in effect, with exemptions for certain countries that have free trade agreements with the U.S.
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Chairman Rhonda Schmidtlein recommended an initial tariff-rate quota of 30% for solar cells above a quota of 0.5 gigawatts, a 10% tariff for in-quota cells, and a 35% tariff on solar modules. Exemptions would apply for imports from Australia, members of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), Colombia, Israel, Jordan, Panama, Peru, Singapore and beneficiaries of the Caribbean Basin Economic Recovery Act.
ITC Commissioners David Johanson and Irving Williamson recommended an initial tariff-rate quota on solar cells of 30% on imports in excess of one gigawatt, with the rate of duty on in-quota cells unchanged, and a tariff on solar modules of 30%. Exemptions would apply for NAFTA countries, CAFTA-DR countries and Australia, Colombia, Israel, Jordan, Panama, Peru, Singapore and beneficiaries of the CBERA.
On the other hand, ITC Commissioner Meredith Broadbent recommended only a quantitative restriction of 8.9 gigawatts in year one, falling by 1.4 gigawatts each year for the next three years safeguards are in place, administered by selling import licenses at public auction at a minimum price of 1 cent per watt. “Any tariff, tariff rate quota, or quantitative restriction that significantly limits global imports would lead to a substantial increase in prices, suppressing demand for CSPV products in the United States,” Broadbent said. “I am firmly of the view that damaging the domestic consumers, installers, and manufacturers supporting CSPV deployment is not an effective way to save domestic producers of CSPV products,” she said.
SolarWorld and Suniva, the companies that are requesting the safeguard duties, had proposed initial tariffs ranging from 22 cents to 25 cents per watt on cells, as well as tariffs and quotas on modules and, in the case of Suniva, an initial minimum import price of 74 cents per watt (see 1709290035). The ITC found imports of solar cells are injuring U.S. industry in September, paving the way for the additional tariffs and quotas (see 1709220044). The ITC will forward its report, “which will contain its injury determination, remedy recommendations, certain additional findings, and the basis for them,” to Trump by Nov. 13. “The President, not the Commission, will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief,” the ITC said.