[Federal Register Volume 82, Number 223 (Tuesday, November 21, 2017)]
[Notices]
[Pages 55393-55395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25134]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. TA-201-75]


Crystalline Silicon Photovoltaic Cells (Whether or Not Partially 
or Fully Assembled Into Other Products)

AGENCY: United States International Trade Commission.

ACTION: Publication of summary of the Commission's report on the 
investigation.

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SUMMARY: Section 202(f)(3) of the Trade Act of 1974 requires that the 
United States International Trade Commission (``Commission'') publish 
in the Federal Register a summary of each report that it submits to the 
President under section 202(f)(1) of the Trade Act of 1974. Set forth 
below is a summary of the report that the Commission submitted to the 
President on November 13, 2017, on investigation No. TA-201-75, 
Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or 
Fully Assembled into Other Products). The Commission conducted the 
investigation under section 202(b) of the Trade Act of 1974 following 
receipt of a petition properly filed on May 17, 2017. The full text of 
the report (with the exception of confidential business information) 
will be posted on the Commission's Web site at https://www.usitc.gov.

DATES: November 13, 2017: Transmittal of the Commission's report to the 
President.

ADDRESSES: United States International Trade Commission, 500 E Street 
SW., Washington, DC 20436. The public record for this investigation may 
be viewed on the Commission's electronic docket (EDIS) at https://edis.usitc.gov.

FOR FURTHER INFORMATION CONTACT: Mary Messer (202-205-3193), Office of 
Investigations, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436. The media should contact Margaret O'Laughlin, 
Office of External Relations (202-205-1819 or 
[email protected]). Hearing-impaired individuals may obtain 
information on this matter by contacting the Commission's TDD terminal 
at 202-205-1810. General information concerning the Commission may also 
be obtained by accessing its Web site (https://www.usitc.gov). Persons 
with mobility impairments who will need special assistance in gaining 
access to the Commission should contact the Office of the Secretary at 
202-205-2002.

SUPPLEMENTARY INFORMATION: 
    Procedural summary: Effective May 17, 2017, the Commission 
instituted this investigation under section 202(b) of the Trade Act to 
determine whether Crystalline Silicon Photovoltaic Cells (Whether or 
Not Partially or Fully Assembled into Other Products) are being 
imported into the United States in such increased quantities as to be a 
substantial cause of serious injury, or the threat thereof, to the 
domestic industry producing an article like or directly competitive 
with the imported article. The Commission instituted the investigation 
in response to a petition, as amended and properly filed on May 17, 
2017 by Suniva, Inc. (``Suniva''), a producer of CSPV cells and CSPV 
modules in the United States. On May 25, 2017, SolarWorld Americas 
publicly stated its support for the petition as a co-petitioner.
    Notice of the institution of the Commission's investigation and of 
the scheduling of public hearings to be held in connection therewith 
was given by posting copies of the notice in the Office of the 
Secretary, U.S. International Trade Commission, Washington, DC, and by 
publishing the notice in the Federal Register (82 FR 25331 (June 1, 
2017)). The public hearing in connection with the injury phase of the 
investigation was held on August 15, 2017, in Washington, DC, and the 
public hearing in connection with the remedy phase of the investigation 
was held on October 3, 2017, in Washington, DC; all persons who 
requested the opportunity were permitted to appear in person or by 
counsel. The Commission voted with respect to injury issues on 
September 22, 2017, and with respect to remedy issues on October 31, 
2017.
    The Commission submitted its report to the President on November 
13, 2017. The report included the Commission's injury determination and 
remedy recommendations, an explanation of the basis for the 
determination and remedy recommendations, and a summary of the 
information obtained in the investigation.
    Determination: On the basis of information developed in the subject 
investigation, the Commission determined pursuant to section 202(b) of 
the Trade Act of 1974 that crystalline silicon photovoltaic cells 
(whether or not partially or fully assembled into other products) 
(``CSPV products'') are being imported into the United States in such 
increased quantities as to be a substantial cause of serious injury to 
the domestic industry producing an article like or directly competitive 
with the imported article.
    Having made an affirmative injury determination pursuant to section

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202(b) of the Trade Act of 1974, the Commission was required to make 
certain additional findings under the implementing statutes of certain 
free trade agreements (``FTAs'') or under statutory provisions related 
to certain preferential trade programs. Under section 311(a) of the 
NAFTA Implementation Act (19 U.S.C. 3371(a)), the Commission found that 
imports of CSPV products from Mexico account for a substantial share of 
total imports and contribute importantly to the serious injury caused 
by imports. Under 19 U.S.C. 3371(a), the Commission also found, with 
Chairman Rhonda K. Schmidtlein dissenting, that imports of CSPV 
products from Canada do not account for a substantial share of total 
imports and do not contribute importantly to the serious injury caused 
by imports. The Commission further found that imports of CSPV products 
from Korea are a substantial cause of threat of serious injury, but 
that imports of CSPV products from Australia, the U.S.-Dominican 
Republic--Central America Free Trade Agreement (``CAFTA-DR'') 
countries, Colombia, Jordan, Panama, Peru, and Singapore, individually, 
are not a substantial cause of serious injury or threat thereof, under 
the respective implementing legislation for the FTAs with these 
countries. See 19 U.S.C. 2112 note (Jordan); 19 U.S.C. 3805 note 
(Australia, Colombia, Korea, Panama, Peru, Singapore); 19 U.S.C. 4101 
(CAFTA-DR). The Commission also found that the serious injury 
substantially caused by imports to the domestic industry producing a 
like or directly competitive article does not result from the reduction 
or elimination of any duty provided for under the U.S.-Israel Free 
Trade Agreement or from duty-free treatment provided for under the 
Caribbean Basin Economic Recovery Act (``CBERA'') provisions of the 
Caribbean Basin Initiative Trade Program or the Generalized System of 
Preferences (``GSP'') program. 19 U.S.C. 2112 note (Israel); 19 U.S.C. 
2703(e) (CBERA); 19 U.S.C. 2253(e)(6) (GSP).
    Remedy recommendations. In order to address the serious injury to 
the domestic industry producing CSPV products and be most effective in 
facilitating the efforts of the domestic industry to make a positive 
adjustment to import competition, the Commission recommended a series 
of actions.
    With regard to CSPV cells, Chairman Schmidtlein recommends a 
tariff-rate quota with an in-quota tariff rate of 10 percent ad valorem 
and an in-quota volume level of 0.5 gigawatts. For U.S. imports of 
cells that exceed the 0.5 gigawatts volume level, she recommends a 
tariff rate of 30 percent ad valorem. Chairman Schmidtlein recommends 
that this tariff-rate quota be implemented for four years and that the 
in-quota level be incrementally raised and the tariff rate be 
incrementally reduced during the remedy period. With regard to CSPV 
modules, she recommends an ad valorem tariff rate of 35 percent to be 
incrementally reduced during the 4-year remedy period. Chairman 
Schmidtlein also recommends that the President initiate international 
negotiations to address the underlying cause of the increase in imports 
of CSPV products and alleviate the serious injury thereof. Having made 
findings that U.S. imports from Australia, the CAFTA-DR countries, 
Colombia, Israel, Jordan, Panama, Peru, Singapore, and the beneficiary 
countries under CBERA were not a substantial cause of the serious 
injury experienced by the domestic industry, Chairman Schmidtlein 
recommends to the President that U.S. imports from these countries be 
excluded from the remedy.

                                    Chairman Schmidtlein's Recommended Remedy
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                                      Year 1             Year 2             Year 3                Year 4
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Cells: Tariff rate Quota:
    In-Quota Tariff Rate......  10%..............  9.5%.............  9.0%.............  8.5%.
    In-Quota Volume Level.....  0.5 gigawatts....  0.6 gigawatts....  0.7 gigawatts....  0.8 gigawatts.
    Out-of-Quota Tariff Rate..  30%..............  29%..............  28%..............  27%.
Modules: Tariff (Ad Valorem)..  35%..............  34%..............  33%..............  32%.
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    Vice Chairman David S. Johanson and Commissioner Irving A. 
Williamson recommend that for a 4-year period the President impose (1) 
a tariff-rate quota on imports of CSPV products in cell form, and (2) 
increased rates of duty on imports of CSPV products in module form. For 
imports of CSPV products in cell form, they recommend an additional 30 
percent ad valorem tariff on imports in excess of 1 gigawatt. In each 
subsequent year, they recommend that this tariff rate decrease by five 
percentage points and that the in-quota amount increase by 0.2 
gigawatts. The rate of duty on in-quota CSPV products in cell form will 
remain unchanged. For imports of CSPV products in module form, Vice 
Chairman Johanson and Commissioner Williamson recommend an additional 
30 percent ad valorem tariff, to be phased down by five percentage 
points per year in each of the subsequent years. Having made a negative 
finding with respect to imports from Canada under section 311(a) of the 
North American Free Trade Agreement Implementation Act, they recommend 
that such imports be excluded from the above tariff-rate quota and 
increased rates of duty. Further, Vice Chairman Johanson and 
Commissioner Williamson recommend that the above tariff-rate quota and 
increased rates of duty not apply to imports from the following 
countries with which the United States has FTAs: Australia, Colombia, 
Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, 
Israel, Jordan, Nicaragua, Panama, Peru, and Singapore. They also 
recommend that the tariff-rate quota and increased rates of duty not 
apply to imports from the CBERA beneficiary countries. Vice Chairman 
Johanson and Commissioner Williamson recommend that the President 
direct the United States Department of Labor and the United States 
Department of Commerce to provide expedited consideration of any 
application for trade adjustment assistance for workers and/or firms 
that are affected by subject imports. They recommend the President's 
consideration of the product exclusions requested by Respondents to 
which Petitioners have not objected and have indicated they would work 
to draft appropriate product-specific exclusions. Finally, they 
recommend that the President also consider any appropriate funding 
mechanisms that may facilitate a positive adjustment to import 
competition.
    Commissioner Meredith M. Broadbent recommends that the President 
impose a quantitative restriction on imports of CSPV products into the 
United States, including cells and modules, for a four-year period, 
administered on a global basis. She recommends that the quantitative 
restriction be set at 8.9 gigawatts in the first year and increase by 
1.4 gigawatts each subsequent year. In accordance with section 1102 of 
the

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Trade Agreements Act of 1979 (19 U.S.C. 2581) and the President's 
authority in section 203(a)(3)(F) of the Trade Act of 1974 (19 U.S.C. 
2253(a)(3)(F)), she also recommends that the President administer these 
quantitative restrictions by selling import licenses at public auction 
at a minimum price of one cent per watt. She recommends that the 
President, to the extent permitted by law, authorize the use of funds 
equal to the amount generated by import license auctions to provide 
development assistance to domestic CSPV product manufacturers for the 
duration of the remedy period, such as through authorized programs at 
the United States Department of Energy (DOE). Commissioner Broadbent 
also recommends that the President implement other appropriate 
adjustment measures, including the provision of trade adjustment 
assistance by the United States Department of Labor and the United 
States Department of Commerce to workers and firms affected by import 
competition. Having made an affirmative finding with respect to imports 
from Mexico under section 311(a) of the NAFTA Implementation Act, she 
recommends that the President allocate no less than 720 megawatts to 
Mexico during the first year within the global quantitative 
restriction, which would expand by 115 megawatts each year. Having made 
a negative finding with respect to imports from Canada under section 
311(a) of the NAFTA Implementation Act, Commissioner Broadbent 
recommends that such imports be excluded from the quantitative 
restriction. Furthermore, she recommends that this quantitative 
restriction not apply to imports from Australia, the CAFTA-DR 
countries, Colombia, Israel, Jordan, Panama, Peru, Singapore, and the 
CBERA beneficiary countries.
    Availability of the public version of the report. The public 
version of the Commission's report containing the Commission's injury 
determination, its remedy recommendations, an explanation of the basis 
for its injury determination and remedy recommendations, and a summary 
of the information obtained in the investigation is contained in 
Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or 
Fully Assembled into Other Products), Inv. No. 201-TA-75, USITC 
Publication 4739 (Nov. 2017).

    By order of the Commission.

    Issued: November 15, 2017.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2017-25134 Filed 11-20-17; 8:45 am]
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