[House Report 118-38]
[From the U.S. Government Publishing Office]


118th Congress    }                                     {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {      118-38

======================================================================

 
DISAPPROVING THE RULE SUBMITTED BY THE DEPARTMENT OF COMMERCE RELATING 
    TO ``PROCEDURES COVERING SUSPENSION OF LIQUIDATION, DUTIES AND 
   ESTIMATED DUTIES IN ACCORD WITH PRESIDENTIAL PROCLAMATION 10414''

                                _______
                                

 April 21, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Smith of Missouri, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                       [To accompany H.J. Res 39]

    The Committee on Ways and Means, to whom was referred the 
joint resolution (H.J. Res 39) disapproving the rule submitted 
by the Department of Commerce relating to ``Procedures Covering 
Suspension of Liquidation, Duties and Estimated Duties in 
Accord With Presidential Proclamation 10414'', having 
considered the same, reports favorably thereon without 
amendment and recommends that the joint resolution do pass.

                                CONTENTS

                                                                   Page
  I.  SUMMARY AND BACKGROUND..........................................2
          A. Purpose and Summary.................................     2
          B. Background and Need for Legislation.................     2
          C. Legislative History.................................     3
          D. Designated Hearing..................................     3
 II. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION...................4
III. VOTES OF THE COMMITTEE...........................................4
 IV. BUDGET EFFECTS OF THE BILL.......................................4
          A. Congressional Budget Office Cost Estimate...........     4
          B. Committee Estimate of Budgetary Effects.............     5
          C. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     5
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......5
          A. Committee Oversight Findings and Recommendations....     5
          B. Statement of General Performance Goals and 
              Objectives.........................................     5
          C. Information Relating to Unfunded Mandates...........     5
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................     6
          E. Duplication of Federal Programs.....................     6
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............6
VII. DISSENTING VIEWS.................................................7

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The purpose of H.J. Res. 39 is to provide for Congressional 
disapproval of the rule submitted by the Department of Commerce 
relating to ``Procedures Covering Suspension of Liquidation, 
Duties and Estimated Duties in Accord With Presidential 
Proclamation 10414''.

                 B. Background and Need for Legislation

    In 2012, the Department of Commerce issued final 
determinations that imports of solar cells and modules from the 
People's Republic of China (PRC) were unfairly priced and 
subsidized, and the International Trade Commission issued final 
determinations that these imports materially injured the U.S. 
domestic industry. Pursuant to these determinations, the United 
States imposed antidumping (AD) duties ranging from 18 to 25 
percent on solar cells and modules imported from certain 
individually-investigated Chinese firms and 250 percent on all 
other solar cells and modules imported from the PRC.\1\ 
Additionally, the United States imposed countervailing (CVD) 
duties of 14 to 15 percent on all solar cells and modules 
imported from China.\2\
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    \1\77 Fed. Reg. 73018 (December 7, 2012).
    \2\77 Fed. Reg. 73017 (December 7, 2012).
---------------------------------------------------------------------------
    On April 1, 2022, in response to a petition from Auxin 
Solar Inc., the Department of Commerce initiated a 
circumvention inquiry into whether imports of solar cells and 
modules, completed in Cambodia, Malaysia, Thailand, or Vietnam 
using parts and components from the PRC, are circumventing 
existing AD and CVD orders on solar cells and modules from the 
PRC.\3\
---------------------------------------------------------------------------
    \3\87 Fed. Reg. 19071 (April 1, 2022).
---------------------------------------------------------------------------
    On June 6, 2022, President Biden issued Proclamation 10414, 
which ``declare[d] an emergency to exist with respect to the 
threats to the availability of sufficient electricity 
generation capacity to meet expected consumer demand,'' citing 
19 U.S.C. Sec. 1318(a) as authority for this emergency 
declaration. That statute empowers the President to proclaim an 
emergency ``by reason of a state of war, or otherwise,'' and on 
the basis of that emergency to allow ``the importation free of 
duty of food, clothing, and medical, surgical, and other 
supplies for use in emergency relief work.'' On the basis of 
this authority, Proclamation 10414 directed the Secretary of 
Commerce to ``consider taking appropriate action'' to permit 
importation free of any new tariffs imposed under U.S. AD or 
CVD law of solar cells and modules from Cambodia, Malaysia, 
Thailand, and Vietnam for a period of 24 months. On September 
16, 2022, the Department of Commerce issued a Final Rule to 
implement Proclamation 10414.\4\
---------------------------------------------------------------------------
    \4\87 Fed. Reg. 56868 (September 16, 2022).
---------------------------------------------------------------------------
    On December 2, 2022, the Department of Commerce issued 
Preliminary Affirmative Determinations of Circumvention with 
respect to Cambodia, Malaysia, Thailand, and Vietnam.\5\
---------------------------------------------------------------------------
    \5\87 Fed. Reg. 75221 (December 8, 2022).
---------------------------------------------------------------------------
    Under the normal operation of U.S. AD and CVD law, upon 
issuing a Preliminary Affirmative Determination of 
Circumvention, the Department of Commerce would instruct U.S. 
Customs and Border Protection (CBP) to suspend liquidation of 
entries of products covered by such a determination and require 
collection of cash deposits sufficient to cover estimated 
duties that reflect the preliminary finding of circumvention. 
However, due to Proclamation 10414, as implemented by the 
Department of Commerce's Final Rule, the Department of Commerce 
did not instruct CBP to do so and has made clear that it does 
not intend to take any action to collect duties or estimated 
duties that reflect the finding of circumvention for solar 
cells and modules from these four countries that enter the 
United States prior to June 6, 2024.
    H.J. Res. 39 would disapprove of the Department of 
Commerce's Final Rule implementing President Biden's 
Proclamation 10414 and allow U.S. AD and CVD law to function as 
designed, including to address circumvention of AD and CVD 
orders by exporters from the PRC. Pursuant to the Congressional 
Review Act, enacting H.J. Res. 39 into law would prevent this 
Final Rule from having effect and would prevent the Department 
of Commerce from issuing a rule that is substantially the same 
as this Final Rule.

                         C. Legislative History


Background

    H.J. Res. 39 was introduced on March 7, 2023, and was 
referred to the Committee on Ways and Means.

Committee hearings

    On March 24, 2023, the Committee on Ways and Means held a 
hearing with United States Trade Representative, Ambassador 
Katherine Tai. The purpose of the hearing was to discuss the 
Biden Administration's 2023 trade policy agenda.
    On April 18, 2023, the Trade Subcommittee of the Committee 
on Ways and Means held a hearing on Countering China's Trade 
and Investment Agenda: Opportunities for American Leadership.

Committee action

    The Committee on Ways and Means marked up H.J. Res. 39, 
Disapproving the rule submitted by the Department of Commerce 
relating to ``Procedures Covering Suspension of Liquidation, 
Duties and Estimated Duties in Accord With Presidential 
Proclamation 10414'', on April 19, 2023, and ordered the 
resolution favorably reported (with quorum being present) by a 
vote of 26-13.

                         D. Designated Hearing

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearings were used to consider H.J. Res. 39: Committee on Ways 
and Means hearing which took place on March 24, 2023, entitled 
``The Biden Administration's 2023 Trade Policy Agenda with 
United States Trade Representative, Ambassador Tai''; and 
Committee on Ways and Means Trade Subcommittee hearing which 
took place on April 18, 2023, entitled ``Countering China's 
Trade and Investment Agenda: Opportunities for American 
Leadership.''

           II. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION


Section 1

    This section provides that Congress disapproves of the 
``Procedures Covering Suspension of Liquidation, Duties and 
Estimated Duties in Accord With Presidential Proclamation 
10414'' rule published by the Department of Commerce, and that 
the rule shall have no force or effect.

                      III. VOTES OF THE COMMITTEE

    In compliance with the Rules of the House of 
Representatives, the following statement is made concerning the 
vote of the Committee on Ways and Means during the markup 
consideration of H.J. Res. 39, Disapproving the Rule Submitted 
by the Department of Commerce Relating to ``Procedures Covering 
Suspension of Liquidation, Duties and Estimated Duties in 
Accord With Presidential Proclamation 10414''.
    H.J. Res. 39 was ordered favorably reported to the House of 
Representatives by a roll call vote of 26 yeas to 13 nays (with 
a quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
           Representative              Yea     Nay    Present       Representative       Yea     Nay    Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO).....................      X   ......  .........  Mr. Neal.............  ......  ......  .........
Mr. Buchanan.......................      X   ......  .........  Mr. Doggett..........  ......  ......  .........
Mr. Smith (NE).....................      X   ......  .........   Mr. Thompson........  ......      X   .........
Mr. Kelly..........................      X   ......  .........  Mr. Larson...........  ......      X   .........
Mr. Schweikert.....................      X   ......  .........  Mr. Blumenauer.......  ......      X   .........
Mr. LaHood.........................      X   ......  .........  Mr. Pascrell.........  ......  ......  .........
Dr. Wenstrup.......................      X   ......  .........  Mr. Davis............  ......      X   .........
Mr. Arrington......................      X   ......  .........  Ms. Sanchez..........  ......      X   .........
Dr. Ferguson.......................      X   ......  .........  Mr. Higgins..........  ......      X   .........
Mr. Estes..........................      X   ......  .........   Ms. Sewell..........      X   ......  .........
Mr. Smucker........................      X   ......  .........  Ms. DelBene..........  ......      X   .........
Mr. Hern...........................      X   ......  .........  Ms. Chu..............  ......      X   .........
Ms. Miller.........................      X   ......  .........  Ms. Moore............  ......      X   .........
Dr. Murphy.........................      X   ......  .........  Mr. Kildee...........  ......  ......  .........
Mr. Kustoff........................      X   ......  .........  Mr. Beyer............  ......      X   .........
Mr. Fitzpatrick....................      X   ......  .........  Mr. Evans............  ......      X   .........
Mr. Steube.........................      X   ......  .........  Mr. Schneider........  ......      X   .........
Ms. Tenney.........................      X   ......  .........  Mr. Panetta..........  ......      X   .........
Mrs. Fischbach.....................      X
Mr. Moore..........................      X
Mrs. Steel.........................      X
Ms. Van Duyne......................      X
Mr. Feenstra.......................      X
Ms. Malliotakis....................      X
Mr. Carey..........................      X
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


              A. Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(d) of rule XIII 
of the Rules of the House of Representatives, a cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974 was not made 
available to the Committee in time for the filing of this 
report.

               B. Committee Estimate of Budgetary Effects

    With respect to the requirements of clause 3(d)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee adopts as its own the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974.

C. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the performance goal and 
objective of this legislation is to provide for Congressional 
disapproval of the Final Rule published by the Department of 
Commerce titled ``Procedures Covering Suspension of 
Liquidation, Duties and Estimated Duties in Accord With 
Presidential Proclamation 10414.''

              C. Information Relating to Unfunded Mandates

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this resolution, as reported, 
contains no congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in clause 9(e), 9(f), or 
9(g) of the rule XXI.

                   E. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    As reported by the Committee, H.J. Res 39 makes no changes 
in existing law.

                         VII. DISSENTING VIEWS

                       Committee on Ways and Means,
                                  House of Representatives,
                                    Washington, DC, April 21, 2023.
    House Democrats are committed to fighting against climate 
change while supercharging our domestic manufacturing. We made 
sure that the clean energy transition will mean more jobs, more 
manufacturing, and higher wages here in the United States. The 
Inflation Reduction Act is the single largest clean energy 
investment in U.S. history. The IRA is putting the country on a 
path to responsible, sustainable energy independence. In 
addition, the green tax credits in the IRA have spurred over 
100,000 jobs for U.S. electricians, mechanics, construction 
workers, technicians, support staff, and others. In the law's 
first six months, 90 new clean energy projects have been 
announced in 31 states. These projects include battery 
manufacturing, electric vehicle manufacturing, and wind and 
solar manufacturing sites.
    Last August, President Biden signed into law the bipartisan 
CHIPS and Science Act of 2022, which will make historic 
investments in U.S. workers, communities, and businesses. Among 
other things, the CHIPS Act will boost American semiconductor 
research, development, and production. The CHIPS Act prohibits 
funding recipients from expanding semiconductor manufacturing 
in China and countries defined by law as posing a national 
security threat to the United States. Along with the Bipartisan 
Infrastructure Law and the CHIPS Act, these landmark laws have 
led to companies committing more than $200 billion to U.S. 
manufacturing. Environmental priorities must not be separated 
from our commitment to stand up for human rights.
    House Democrats led the bipartisan, bicameral effort to 
pass into law the Uyghur Forced Labor Prevention Act, which is 
in now in full force, showing the People's Republic of China 
(PRC) that products made through forced labor have no place in 
the United States. Concerns with forced labor in the solar 
industry have been well-documented, and these products should 
not enter the U.S. market. In June 2021, U.S. Customs and 
Border Protection banned imports of silica-based products made 
by Hoshine Silicon Industry Company as well as goods made using 
those products, including solar cells. The U.S. Department of 
Labor added Chinese polysilicon to a list of goods believed to 
be produced by child labor or forced labor. Ways and Means 
Democrats will continue to oversee implementation of our laws 
prohibiting this deplorable and unconscionable practice.
    In addition to enforcing laws regarding the prohibition of 
forced labor, House Democrats are committed to ensuring that 
the U.S. has the trade tools to combat unfair trade practices. 
House Democrats fought hard to establish new enforcement 
structures in the United States-Mexico-Canada Agreement that 
have raised our standards as a nation and serve as a powerful 
beacon of what's possible. We must continue to give weight to 
our word by fighting for aggressive enforcement of our trade 
rules. In this regard, in December 2022 the U.S. Commerce 
Department found that certain companies are attempting to 
bypass U.S. antidumping and countervailing duty orders on solar 
cells and panels from China by doing minor processing in 
Cambodia, Malaysia, Thailand, or Vietnam before shipping to the 
United States.\1\
---------------------------------------------------------------------------
    \1\Federal Register Notice, Vol. 87. No. 235, December 8, 2022.
---------------------------------------------------------------------------
    For over a hundred years now, Congress has maintained trade 
remedies laws to address unfair trade practices.\2\ Trade 
remedies underpin our open economy and are a critical tool to 
address unfair trade practices by the People's Republic of 
China. The findings by the U.S. Commerce Department cannot be 
ignored.
---------------------------------------------------------------------------
    \2\See Trade Remedies: Antidumping (noting that since 1921 Congress 
has maintained U.S. antidumping laws and the basic antidumping 
administrative framework; further, the Antidumping Act of 1921 became 
the textual basis for the antidumping provision of the multilateral 
trading system), Christopher A. Casey, Liana Wong, Congressional 
Research Service, August 23, 20221; see also Trade Remedies: 
Countervailing Duties (noting that beginning in the 1890s U.S. trade 
laws began to include countervailing duty provisions), Christopher A. 
Casey, Liana Wong, Congressional Research Service, August 23, 20221.

            Sincerely,
                                           Richard E. Neal,
                                                    Ranking Member.

                                  [all]