Coalition Calls for Polysilicon TRQ in Comment on Section 232 Investigation
The Coalition for Prosperous America is proposing that a Section 232 investigation on polysilicon result in a tariff-rate quota that is limited to "in-quota trusted suppliers" such as South Korea or Germany, and that excludes Chinese products. A "$0.10 per watt tariff" should apply to over-quota imports of solar cells, with a quota volume "tied to U.S. production capacity" and overseen by the Department of Energy, it said in public comments.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
CPA said in a news release that a TRQ is necessary to "secure domestic polysilicon production while giving tailored import relief for the solar-photovoltaic supply chain." The comments are part of a Section 232 investigation Commerce initiated in July to determine the national security effects of imports of polysilicon and its derivatives (see 2507140066).
CPA's comments said that a TRQ is "urgently needed" to establish a domestic industry and reduce dependence on China, which "dominates" global polysilicon production with over 80% of world supply through "massive state subsidies, severe overcapacity, and often exploitative labor practices." CPA also "urged" Commerce to impose "high universal tariffs on finished solar panels" and to ensure that tariffs and TRQs cover both "solar- and semiconductor-grade polysilicon" as well as its downstream inputs.
Securing a domestic supply of polysilicon is a "national security imperative" for the U.S., CPA said, due in part to the "limitations" of U.S. trade remedies to "help the industry deeper into the supply chain." Establishing a TRQ will help with "reshoring the full supply chain for solar," which CPA named "America’s fastest growing source of electricity."
CPA President Jon Toomey said "America’s adversaries continue to embed themselves" in the manufacturing processes of "American connected devices," which he said is a "direct threat" to U.S. economic and national security.