The Court of International Trade on March 5 declined to block implementation of recently announced Section 201 safeguard duties on solar cells. The court said it would not issue an injunction against imposition of the tariff-rate quotas, which took effect Feb. 7 (see 1801240036), finding arguments from Canadian exporters and a U.S. importer in favor of the block unlikely to prevail in a final decision on the safeguards.
Section 201 Safeguards
Section 201 or “safeguard” actions are steps the President can take to provide temporary relief for an industry through the imposition of tariffs or quotas to create a more competitive environment for said industry. Section 201 actions are considered consistent with U.S. international obligations if they conform to the World Trade Organization’s Agreement on Safeguards. To enact Section 201 Safeguards, a U.S. company must first file a complaint with the International Trade Commission, which then makes a determination if the industry is injured by the importation of the goods in question. If the investigation is affirmative, the President may enact the safeguards.
The European Union has asked for consultations under World Trade Organization rules to discuss safeguard tariffs the United States is levying on solar panels. The request, filed Feb. 7, is the first step in a dispute process on whether the tariff-rate quota violates international trade law. However, the EU did not assert that the U.S. is out of compliance with the General Agreement on Tariffs and Trade, as China did when it requested consultations earlier this week (see 1802070022). The EU said Germany is a major exporter of solar panels. Tariffs on out-of-quota solar cells are 30 percent in the first year, and decline by 5 percentage points each year until reaching 15 percent in the fourth year (see 1801230052). They apply under Section 201 of the U.S. 1974 Trade Act, which is designed to safeguard domestic industry.
China has asked for consultations under World Trade Organization rules to discuss safeguard tariffs the United States is levying against washing machines and solar panels. The request, filed at the WTO on Feb. 6, is the first step in a dispute process on whether the tariffs violate international trade law. "We believe the measures taken by the United States are not consistent with its obligations," China wrote in its requests.
International Trade Today is providing readers with some of the top stories for Jan. 22-26 in case they were missed.
New Section 201 safeguard duties on residential washers and on solar cells and modules take effect for entries on or after 12:01 a.m. on Feb. 7, said two presidential proclamations signed by President Donald Trump on Jan. 23. Beginning on Feb. 7, imports of residential washers and solar cells that fall under the scope of the safeguard duties will be subject to tariff-rate quotas that will remain in effect, unless modified, for a period of three or four years, respectively (see 1801230052). Residential washers and solar cells and modules admitted into foreign-trade zones on or after that date must be admitted as “privileged foreign status,” and will be subject to the TRQs upon entry for consumption, the proclamations said. International Trade Today will have more details on the scope of the safeguard duties once the proclamations are published, along with their annexes, in the Federal Register.
President Donald Trump on Jan. 23 imposed new Section 201 safeguard tariffs on imports of large residential washers and solar cells and modules, marking the first use of the provision since safeguards were imposed on steel products in 2002. Both of the new safeguards take the form of tariff-rate quotas, with duties on out-of-quota washers starting at 50% and in-quota washers at 20%, and duties on out-of-quota solar cells and modules starting at 30% with in-quota solar cells exempt. Imports from free trade agreement partners, including Canada and Mexico, are mostly covered by the safeguard duties, though Canadian washers will benefit from an exemption.
The Trump administration will accept public input on recommendations from the International Trade Commission for potential trade remedies that might be imposed after the ITC reached an affirmative injury determination in its Section 201 safeguard investigation on large residential washers, the Office of the U.S. Trade Representative said. The ITC's final report is due to the White House Dec. 4. President Donald Trump will then have about two months to adopt or reject the ITC’s recommendations, or opt to set other trade restrictions. USTR will accept written comments through Dec. 11, and written responses to the initial round of comments through Dec. 18, including from domestic producers, importers, exporters or other interested parties, USTR said. Further, the interagency Trade Policy Staff Committee (TPSC) will hold a public hearing on the matter on Jan. 3, 2018.
The International Trade Commission will recommend a tariff-rate quota on all imports of large residential washers as part of its Section 201 safeguard investigation, it said in Nov. 21 a press release. The ITC’s four sitting commissioners unanimously said President Donald Trump should implement a three-year tariff-rate quota, with large residential washers imported above a threshold of 1.2 million units subject to a 50 percent rate of duty in year one, decreasing to 45 percent in year two and 40 percent in year three.
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.
The Trump administration will accept public input on forthcoming recommendations from the International Trade Commission for potential trade remedies that might be imposed after the ITC reached an affirmative injury determination in its Section 201 safeguard investigation on crystalline silicon photovoltaic (CSPV) cells, the Office of the U.S. Trade Representative said. The ITC is expected to send its final report by Nov. 13. President Donald Trump will then have about two months to adopt or reject the ITC’s recommendations, or opt to set other trade restrictions. USTR will accept written comments through Nov. 20, and written responses to the initial round of comments through Nov. 29, including from domestic producers, importers, exporters or other interested parties, USTR said. Further, the interagency Trade Policy Staff Committee (TPSC) will hold a public hearing on the matter on Dec. 6.