The following lawsuits were filed at the Court of International Trade during the weeks of Aug. 15-21 and 22-28:
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 following lawsuits were filed at the Court of International Trade during the week of July 18-24:
Importers of finished goods and manufacturing inputs told the International Trade Commission across three days of testimony that the Section 301 tariffs are damaging profit margins, and in some cases lead to layoffs. But some unions and manufacturers said the Section 301 tariffs are deserved for Chinese abuses, and with the tariffs in place, the goods they make are more competitive. The International Trade Commission is studying the efficacy of Section 301 and Section 232 tariffs, and their economic impact.
Importers seeking refunds of safeguard duties on Canadian solar cells entered on or after Feb. 1 may file a post-summary correction “if within the PSC filing timeframe,” CBP said in a CSMS message July 19. But liquidated entries of solar products “originating in Canada and entered on or after February 1, 2022, are not eligible for a refund of Section 201 duties” per a U.S. Trade Representative notice scheduled for publication in the July 20 Federal Register, CBP said.
A group of lawmakers is calling the outcry around the anticircumvention case on solar panels made in Southeast Asia "an attempt to undermine the integrity of our trade enforcement laws and the independence of our federal workforce."
CBP created Harmonized System Update (HSU) 2205 Feb. 4, containing 95 Automated Broker Interface records and 25 Harmonized Tariff Schedule records, it said in a CSMS message. The HSU involves changes to Section 201 safeguards on solar cells (see 2202040003).
The tariff on most imported solar panels will drop to 14.75% at 12:01 a.m. on Feb. 7, and bifacial solar panels will continue to be exempt from the global safeguard, a presidential proclamation Feb. 4 says. The tariff rate quota threshold for solar cells will also double from 2.5 GW to 5 GW, making it unlikely any imported cells will be subject to the tariff.
The threshold for tariff rate quotas will double to 5 GW per year under a four-year extension of Section 201 safeguard tariffs announced by presidential proclamation Feb. 4. The ITC has said imports during the first four years of the safeguard never exceeded the previous 2.5 GW threshold in the first four years the safeguard was in effect, making it unlikely that enough cells will be imported to be subject to the tariffs. Bifacial solar panels will continue to be excluded from the safeguard.
Six Democratic and two Republican senators are asking President Joe Biden to overrule the International Trade Commission and allow the safeguard tariffs on solar panels and cells to lapse in February, as they were originally scheduled to do. Three Republican and two Democratic senators are asking the president to retain the tariffs for another four years, and to restore tariffs on bifacial solar panels, which were collected for about a year, until the Court of International Trade said applying tariffs to bifacial solar panels after they were originally excluded was unlawful. That decision, from November (see 2111160032), is being appealed.
CBP will suspend liquidation for entries of solar cells subject to Section 201 safeguard duties over the past 10-15 months, following to a Court of International Trade decision that invalidated a Trump-era increase in safeguard duty rates on solar cells and the withdrawal of an exemption for bifacial cells (see 2111170038), CBP said in a CSMS message Dec. 28.