[Federal Register Volume 91, Number 136 (Friday, July 17, 2026)]
[Notices]
[Pages 44821-44823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14416]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-979, C-570-980]
Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled
Into Modules, From the People's Republic of China: Initiation of
Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from First Solar, Inc., Hanwha Q
CELLS USA Inc., Talon PV, Swift Solar, Great Lakes Solex PR, LLC, DYCM
Power, LLC, Suniva Inc., and Silfab Solar Inc. (collectively, the
requesters), the U.S. Department of Commerce (Commerce) is initiating a
country-wide circumvention inquiry to determine whether imports of
crystalline silicon photovoltaic cells, whether or not assembled into
modules (solar cells), that have been completed in Ethiopia using parts
and components manufactured in the People's Republic of China (China),
that are then subsequently exported from Ethiopia to the United States
or are completed or assembled, using additional inputs from China, into
modules in Vietnam and then exported to the United States are
circumventing the antidumping duty (AD) and countervailing duty (CVD)
orders on solar cells from China.
DATES: Applicable July 17, 2026.
FOR FURTHER INFORMATION CONTACT: Justin Enck at (202) 482-1614 and Mark
Ross at (202) 482-4794 Trade Remedy Counseling and Initiations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
Background
On May 12, 2026, pursuant to section 781(b) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.226(i), the requesters filed
a circumvention inquiry request alleging that solar cells and modules
completed in Ethiopia using parts and components manufactured in China
are circumventing the AD and CVD orders on solar cells from China \1\
and, accordingly, should be included within the scope of the Orders.\2\
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\1\ See Crystalline Silicon Photovoltaic Cells, Whether or Not
Assembled into Modules, from the People's Republic of China: Amended
Final Determination of Sales at Less Than Fair Value, and
Antidumping Duty Order,77 FR 73018 (December 7, 2012); see also
Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled
into Modules, from the People's Republic of China: Countervailing
Duty Order, 77 FR 73017 (December 7, 2012) (collectively, Orders).
\2\ See Requesters' Letter, ``Request for Circumvention Ruling
Pursuant to Section 781(b) of the Tariff Act of 1930,'' dated May
12, 2026 (Circumvention Inquiry Request).
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On May 27, 2026, Toyo Solar Manufacturing One Member PLC and
Vietnam Sunergy Joint Stock Company (collectively, TOYO) submitted
comments and clarifying factual information in response to the
circumvention inquiry request.\3\ On May 27, 2026, Origin Solar
Manufacturing PLC also submitted comments and clarifying factual
information in response to the circumvention inquiry request.\4\ On
June 1, 2026, the requesters requested that TOYO resubmit the public
version of its comments and clarifying factual information.\5\ On June
4, 2026, Commerce issued a request for TOYO to resubmit its comments
and clarifying factual information.\6\ On June 4, 2026, Commerce
extended the initiation deadline from June 11 to July 13, 2026, in
accordance with 19 CFR 351.226(d)(1).\7\ On June 8, 2026, TOYO
resubmitted its comments and clarifying factual information.\8\ On June
10, 2026, the requesters submitted comments in response to TOYO's
comments and clarifying factual information.\9\ On June 12 and 25,
2026, Commerce issued supplemental questionnaires to the
requesters.\10\ On June 16 and 29, 2026, the requesters responded to
Commerce's requests for information.\11\
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\3\ See TOYO's Letter, ``Comments and Information Regarding the
Adequacy of the Anti-Circumvention Petition,'' dated May 27, 2026.
\4\ See Origin Solar's Letter, ``Origin Solar's Comments
Regarding Adequacy,'' May 27, 2026.
\5\ See Requesters' Letter, ``Request for TOYO and VSUN to
Resubmit the Public Version of Their Comments,'' dated July 4, 2026.
\6\ See Commerce's Letter, ``Resubmission of Comments and New
Factual Information,'' dated June 4, 2026.
\7\ See Memorandum, ``Extension of Circumvention Inquiry
Initiation Deadline,'' dated June 4, 2026.
\8\ See TOYO's Letter, ``Resubmission of Comments and
Information Regarding the Adequacy of the Anti-Circumvention
Petition,'' June 8, 2026.
\9\ See Requesters' Letter, ``Response to Adequacy Comments on
the Anti-Circumvention Inquiry Request,'' dated June 10, 2026.
\10\ See Commerce's Letters, ``Ethiopia Assembly Circumvention
Inquiry Request--Supplemental Questionnaire,'' dated June 12, 2026;
and ``Ethiopia Assembly Circumvention Inquiry Request--Second
Supplemental Questionnaire,'' dated June 25, 2026.
\11\ See Circumvention Inquiry Request Supplement; see also
Second Circumvention Inquiry Request Supplement.
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Scope of the Orders
The products covered by these Orders are crystalline silicon
photovoltaic cells, and modules, laminates, and panels, consisting of
crystalline silicon photovoltaic cells, whether or not partially or
fully assembled into other products, including, but not limited to,
modules, laminates, panels and building integrated materials. For a
full description of the scope of the Orders, see the Circumvention
Initiation Checklist.\12\
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\12\ See Circumvention Initiation Checklist, ``Crystalline
Silicon Photovoltaic Cells, Whether or Not Assembled into Modules,
from the People's Republic of China,'' dated concurrently with, and
hereby adopted by, this notice (Circumvention Initiation Checklist),
at Attachment I.
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers solar cells and modules completed
in Ethiopia using parts and components from China, that are
subsequently exported from Ethiopia and imported into the United
States, and solar cells completed in Ethiopia using parts and
components from China, that are completed or assembled, using
additional inputs from China, into modules in Vietnam and subsequently
exported from Vietnam and imported into the United States.
Initiation of Circumvention Inquiry
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
circumvention inquiry request allege ``that the elements necessary for
a circumvention determination under section 781 of the Act exist'' and
be ``accompanied by information reasonably available to the interested
party supporting these allegations.'' The requesters alleged
circumvention pursuant to section 781(b) of the Act (merchandise
completed or assembled in other foreign countries).
Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in a foreign country
other than the country to which the order applies. In conducting a
circumvention inquiry, under section 781(b)(1) of the Act, Commerce
relies on the following criteria: (A) merchandise imported into the
United States is of the same class or kind as any merchandise produced
in a foreign country that is the subject of an AD or CVD order; (B)
before importation into the United States, such imported merchandise is
completed or assembled in another
[[Page 44822]]
foreign country from merchandise which is subject to the order or is
produced in the foreign country that is subject to the order; (C) the
process of assembly or completion in the foreign country referred to in
section (B) is minor or insignificant; (D) the value of the merchandise
produced in the foreign country to which the AD or CVD order applies is
a significant portion of the total value of the merchandise exported to
the United States; and (E) the administering authority determines that
action is appropriate to prevent evasion of such order.
In determining whether the process of assembly or completion in a
foreign country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
determination of whether the process of assembly or completion in a
foreign country is minor or insignificant.\13\ Accordingly, Commerce
will evaluate each of these five factors as they exist in the foreign
country, depending on the particular circumvention scenario.
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\13\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at
893.
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In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether it is appropriate under
section 781(b)(1) of the Act to include merchandise assembled or
completed in a foreign country within the scope of an AD or CVD order.
Specifically, Commerce shall take into account such factors as: (A) the
pattern of trade, including sourcing patterns; (B) whether the
manufacturer or exporter of the merchandise that was shipped to the
foreign country is affiliated with the person who, in the foreign
country, uses the merchandise to complete or assemble the merchandise
which is subsequently imported into the United States; and (C) whether
imports of the merchandise into the foreign country have increased
after the initiation of the investigation that resulted in the issuance
of such order.
Analysis
Based on our analysis of the requesters' circumvention inquiry
request, we determine that they have satisfied the criteria under 19
CFR 351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we are
initiating the requested circumvention inquiry. For a full discussion
of the basis for our decision to initiate the circumvention inquiry,
see the Circumvention Initiation Checklist. As explained in the
Circumvention Initiation Checklist, the information provided by the
requesters warrants initiating the circumvention inquiry on a country-
wide basis. Commerce has taken this approach in prior circumvention
inquiries, where the facts warranted initiation on a country-wide
basis.\14\
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\14\ See, e.g., Hydrofluorocarbon Blends from the People's
Republic of China: Initiation of Circumvention Inquiry on the
Antidumping Duty Order, 88 FR 74150 (October 30, 2023).
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Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to
solicit information from certain companies in Ethiopia concerning their
production of solar cells and modules and their shipments thereof to
the United States.
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) data. Commerce intends to place the CBP data on
each record within five days of the publication of this initiation
notice, which will be available on Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. Comments regarding the CBP data and respondent
selection should be submitted within seven days after placement of the
CBP data on the record of the relevant inquiry.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to Commerce's requests for information may result in the
application of facts available, pursuant to section 776(a) of the Act,
which may include adverse inferences, pursuant to section 776(b) of the
Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify CBP of the
initiation and direct CBP to continue the suspension of liquidation of
entries of products subject to the circumvention inquiry that were
already subject to the suspension of liquidation under the Orders and
to apply the cash deposit rates that would be applicable if the
products were determined to be covered by the scope of the Orders.
Should Commerce issue affirmative preliminary or final
circumvention determinations, Commerce will follow the suspension of
liquidation rules under 19 CFR 351.226(l)(2)-(4). In the event that
Commerce issues affirmative preliminary or final circumvention
determinations that the products are circumventing the Orders, Commerce
will instruct CBP to continue the suspension of liquidation of
previously suspended entries and to apply the applicable cash deposit
rate. Commerce will also instruct CBP to begin the suspension of
liquidation and application of cash deposits for any unliquidated
entries not yet suspended, entered, or withdrawn from warehouse, for
consumption, on or after the date of publication of the notice of
initiation of the circumvention inquiry pursuant to paragraphs
(l)(2)(ii) and (l)(3)(ii). In addition, pursuant to paragraphs
(l)(2)(iii)(A) and (l)(3)(iii)(A), Commerce may instruct CBP to begin
the suspension of liquidation and application of cash deposits for any
unliquidated entries not yet suspended, entered, or withdrawn from
warehouse, for consumption, prior to the date of initiation of the
circumvention inquiry, but not for such entries prior to November 4,
2021, the effective date of these provisions in the Final Rule.\15\
These rules will not affect CBP's authority to take any additional
action with respect to the suspension of liquidation or related
measures for these entries, as stated in 19 CFR 351.226(l)(5).
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\15\ See Regulations to Improve Administration and Enforcement
of Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345
(September 20, 2021) (Final Rule).
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Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce determines that the requesters' request for this circumvention
inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly,
Commerce is notifying all interested parties of the initiation of this
circumvention inquiry to determine whether imports of solar cells and
modules completed in Ethiopia using parts and components from China,
that are subsequently exported from Ethiopia and imported into the
United States, and solar cells completed in Ethiopia using parts and
components from China, that are completed or assembled, using
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additional inputs from China, into modules in Vietnam and subsequently
exported from Vietnam and imported into the United States are
circumventing the Orders. In addition, we have included a description
of the products that are subject to this inquiry, and an explanation of
Commerce's decision to initiate this inquiry as provided in the
accompanying Circumvention Initiation Checklist.\16\
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\16\ See Circumvention Initiation Checklist.
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In accordance with 19 CFR 351.226(e)(1), unless this circumvention
inquiry is rescinded, in whole or in part, or extended, Commerce
intends to issue its preliminary circumvention determination no later
than 150 days from the date of publication of the notice of initiation
of this circumvention inquiry in the Federal Register. Furthermore, in
accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2),
unless this circumvention inquiry is rescinded, in whole or in part, or
extended, Commerce intends to issue its final determination within 300
days from the date of publication of the notice of initiation of this
circumvention inquiry in the Federal Register.
This notice is published in accordance with section 781(b) of the
Act, and 19 CFR 351.226(d)(1)(iii).
Dated: July 13, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2026-14416 Filed 7-16-26; 8:45 am]
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