83 FR 3541 - To Facilitate Positive Adjustment to Competition From Imports of Certain Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or Fully Assembled Into Other Products) and for Other Purposes

Executive Office of the President

Federal Register Volume 83, Issue 17 (January 25, 2018)

[Federal Register Volume 83, Number 17 (Thursday, January 25, 2018)]
[Presidential Documents]
[Pages 3541-3551]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01592]




                        Presidential Documents 



Federal Register / Vol. 83, No. 17 / Thursday, January 25, 2018 / 
Presidential Documents

[[Page 3541]]


                Proclamation 9693 of January 23, 2018

                
To Facilitate Positive Adjustment to Competition 
                From Imports of Certain Crystalline Silicon 
                Photovoltaic Cells (Whether or Not Partially or Fully 
                Assembled Into Other Products) and for Other Purposes

                By the President of the United States of America

                A Proclamation

                1. On November 13, 2017, the United States 
                International Trade Commission (ITC) transmitted to the 
                President a report (the ``ITC Report'') on its 
                investigation under section 202 of the Trade Act of 
                1974, as amended (the ``Trade Act'') (19 U.S.C. 2252), 
                with respect to imports of certain crystalline silicon 
                photovoltaic (CSPV) cells, whether or not partially or 
                fully assembled into other products (including, but not 
                limited to, modules, laminates, panels, and building-
                integrated materials) (``CSPV products''). These 
                products exclude certain products described in the ITC 
                Notice of Institution, 82 FR 25331 (June 1, 2017), and 
                listed in subdivision (c)(ii) of Note 18 in Annex I to 
                this proclamation.

                2. The ITC reached an affirmative determination under 
                section 202(b) of the Trade Act (19 U.S.C. 2252(b)) 
                that CSPV products are being imported into the United 
                States in such increased quantities as to be a 
                substantial cause of serious injury, or threat of 
                serious injury, to the domestic industry producing a 
                like or directly competitive article.

                3. Pursuant to section 311(a) of the North American 
                Free Trade Agreement Implementation Act (the ``NAFTA 
                Implementation Act'') (19 U.S.C. 3371(a)), the ITC made 
                findings as to whether imports from Mexico and Canada, 
                considered individually, account for a substantial 
                share of total imports and contribute importantly to 
                the serious injury, or threat thereof, caused by 
                imports. The ITC made affirmative findings of 
                contribution to injury with respect to imports of CSPV 
                products from Mexico but made negative findings with 
                respect to imports of CSPV products from Canada.

                4. On November 27, 2017, the United States Trade 
                Representative (USTR) requested additional information 
                from the ITC under section 203(a)(5) of the Trade Act 
                (19 U.S.C. 2253(a)(5)). On December 27, 2017, the ITC 
                provided a response that identified unforeseen 
                developments that led to the importation of CSPV 
                products into the United States in such increased 
                quantities as to be a substantial cause of serious 
                injury (the ``supplemental report'').

                5. The ITC commissioners transmitted to the President 
                their individual recommendations with respect to the 
                actions that each of them considered would address the 
                serious injury, or threat of serious injury, to the 
                domestic industry and be most effective in facilitating 
                the efforts of the industry to make a positive 
                adjustment to import competition. The ITC did not 
                recommend an action within the meaning of section 
                202(e) of the Trade Act (19 U.S.C. 2252(e)).

                6. Pursuant to section 203 of the Trade Act (19 U.S.C. 
                2253), and after taking into account the considerations 
                specified in section 203(a)(2) of the Trade Act (19 
                U.S.C. 2253(a)(2)), the ITC Report, and the 
                supplemental report, I have determined to implement 
                action of a type described in section 203(a)(3) of the 
                Trade Act (19 U.S.C. 2252(a)(3)) (a ``safeguard 
                measure''), with regard to the following CSPV products:

[[Page 3542]]

                    (a) solar cells, whether or not assembled into 
                modules or made up into panels provided for in 
                subheading 8541.40.60 in Annex I to this proclamation;
                    (b) parts or subassemblies of solar cells provided 
                for in subheadings 8501.31.80, 8501.61.00, and 
                8507.20.80 in Annex I to this proclamation;
                    (c) inverters or batteries with CSPV cells attached 
                provided for in subheadings 8501.61.00 and 8507.20.80 
                in Annex I to this proclamation; and
                    (d) DC generators with CSPV cells attached provided 
                for in subheading 8501.31.80 in Annex I to this 
                proclamation.

                7. Pursuant to section 312(a) of the NAFTA 
                Implementation Act (19 U.S.C. 3372(a)), I have 
                determined after considering the ITC Report that 
                imports of CSPV products from each of Mexico and 
                Canada, considered individually, account for a 
                substantial share of total imports and contribute 
                importantly to the serious injury or threat of serious 
                injury found by the ITC.

                8. Pursuant to section 203 of the Trade Act, the action 
                I have determined to take shall be a safeguard measure 
                in the form of:

                    (a) a tariff-rate quota on imports of solar cells 
                not partially or fully assembled into other products as 
                described in paragraph 6 of this proclamation, imposed 
                for a period of 4 years, with unchanging within-quota 
                quantities and annual reductions in the rates of duty 
                applicable to goods entered in excess of those 
                quantities in the second, third, and fourth years, as 
                provided in Annex I to this proclamation; and
                    (b) an increase in duties on imports of modules, 
                imposed for a period of 4 years, with annual reductions 
                in the rates of duty in the second, third, and fourth 
                years, as provided in Annex I to this proclamation.

                I have determined to exclude from this action the 
                products listed in subdivision (c)(ii) and (c)(iii) of 
                Note 18 in Annex I to this proclamation.

                9. This safeguard measure shall apply to imports from 
                all countries, except as provided in paragraph 10 of 
                this proclamation.

                10. This safeguard measure shall not apply to imports 
                of any product described in paragraph 6 of this 
                proclamation of a developing country that is a Member 
                of the World Trade Organization (WTO), as listed in 
                subdivision (b) of Note 18 in Annex I to this 
                proclamation, as long as such a country's share of 
                total imports of the product, based on imports during a 
                recent representative period, does not exceed 3 
                percent, provided that imports that are the product of 
                all such countries with less than 3 percent import 
                share collectively account for not more than 9 percent 
                of total imports of the product. If I determine that a 
                surge in imports of a product described in paragraph 6 
                of this proclamation of a developing country that is a 
                WTO Member results in imports of that product from that 
                developing country exceeding either of the thresholds 
                described in this paragraph, the safeguard measure 
                shall be modified to apply to such product from such 
                country.

                11. The in-quota quantity in each year under the 
                tariff-rate quota described in paragraph 8 of this 
                proclamation shall be allocated among all countries 
                except those countries the products of which are 
                excluded from such tariff-rate quota pursuant to 
                paragraph 10 of this proclamation.

                12. Pursuant to section 203(a)(1)(A) of the Trade Act 
                (19 U.S.C. 2253(a)(1)(A)), I have determined that this 
                safeguard measure will facilitate efforts by the 
                domestic industry to make a positive adjustment to 
                import competition and provide greater economic and 
                social benefits than costs. If I determine that further 
                action is appropriate and feasible to facilitate 
                efforts by the domestic industry to make a positive 
                adjustment to import competition and to provide greater 
                economic and social benefits than costs, or if I 
                determine that the conditions under section 204(b)(1) 
                of the Trade Act (19 U.S.C. 2254(b)(1)) are met, I 
                shall reduce, modify, or terminate the action 
                established in this proclamation accordingly. In 
                addition, if I determine within 30 days of the date of 
                this proclamation, as a result of consultations between 
                the United States and other WTO Members pursuant to 
                Article

[[Page 3543]]

                12.3 of the WTO Agreement on Safeguards, that it is 
                necessary to reduce, modify, or terminate the safeguard 
                measure, I shall proclaim the corresponding reduction, 
                modification, or termination of the safeguard measure 
                within 40 days.

                13. Section 502 of the Trade Act (19 U.S.C. 2462) 
                authorizes the President to designate countries as 
                beneficiary developing countries for purposes of the 
                Generalized System of Preferences (GSP).

                14. Proclamation 9687 of December 22, 2017, ended the 
                suspension of Argentina's designation as a GSP 
                beneficiary developing country. That proclamation made 
                corresponding modifications to the Harmonized Tariff 
                Schedule of the United States (HTS). Those 
                modifications included technical errors, and I have 
                determined that modifications to the HTS are necessary 
                to correct them.

                15. Section 604 of the Trade Act (19 U.S.C. 2483), 
                authorizes the President to embody in the HTS the 
                substance of the relevant provisions of that Act, and 
                of other acts affecting import treatment, and actions 
                thereunder, including the removal, modification, 
                continuance, or imposition of any rate of duty or other 
                import restriction.

                NOW, THEREFORE, I, DONALD J. TRUMP, President of the 
                United States of America, acting under the authority 
                vested in me by the Constitution and the laws of the 
                United States, including but not limited to sections 
                203, 502, and 604 of the Trade Act, and section 301 of 
                title 3, United States Code, do proclaim that:

(1) In order to establish increases in duty and a tariff-rate quota on 
imports of the CSPV products described in paragraph 6 of this proclamation 
(other than excluded products), subchapter III of chapter 99 of the HTS is 
modified as provided in Annex I to this proclamation. Any merchandise 
subject to the safeguard measure that is admitted into U.S. foreign trade 
zones on or after 12:01 a.m. eastern standard time on February 7, 2018, 
must be admitted as ``privileged foreign status'' as defined in 19 CFR 
146.41, and will be subject upon entry for consumption to any quantitative 
restrictions or tariffs related to the classification under the applicable 
HTS subheading.

(2) Except as provided in clause (3) below, imports of CSPV products of WTO 
Member developing countries, as listed in subdivision (b) of Note 18 in 
Annex I to this proclamation, shall be excluded from the safeguard measure 
established in this proclamation. Imports of solar cells of those countries 
that are not partially or fully assembled into other products shall not be 
counted toward the tariff-rate quota limits that trigger the over-quota 
rates of duties.

(3) If, after the safeguard measure established in this proclamation takes 
effect, the USTR determines that:

                    (a) the share of total imports of the product of a 
                country listed in subdivision (b) of Note 18 in Annex I 
                to this proclamation exceeds 3 percent,
                    (b) imports of the product from all listed 
                countries with less than 3 percent import share 
                collectively account for more than 9 percent of total 
                imports of the product, or
                    (c) a country listed in subdivision (b) of Note 18 
                in Annex I to this proclamation is no longer a 
                developing country for purposes of this proclamation;
                    the USTR is authorized, upon publication of a 
                notice in the Federal Register, to revise subdivision 
                (b) of Note 18 in Annex I to this proclamation to 
                remove the relevant country from the list or suspend 
                operation of that subdivision, as appropriate.

(4) Within 30 days after the date of this proclamation, the USTR shall 
publish in the Federal Register procedures for requests for exclusion of a 
particular product from the safeguard measure established in this 
proclamation. If the USTR determines, after consultation with the 
Secretaries

[[Page 3544]]

of Commerce and Energy, that a particular product should be excluded, the 
USTR is authorized, upon publishing a notice of such determination in the 
Federal Register, to modify the HTS provisions created by Annex I to this 
proclamation to exclude such particular product from the safeguard measure 
described in paragraph 8 of this proclamation.

(5) In order to make technical corrections necessary to reflect the end of 
the suspension of Argentina's designation as a GSP beneficiary developing 
country, the HTS is modified as set forth in Annex II to this proclamation.

(6) Any provision of previous proclamations and Executive Orders that is 
inconsistent with the actions taken in this proclamation is superseded to 
the extent of such inconsistency.

(7) Except as provided for in clause (8) of this proclamation, the 
modifications to the HTS made by this proclamation, including Annex I, 
shall be effective with respect to goods entered, or withdrawn from 
warehouse for consumption, on or after 12:01 a.m. eastern standard time on 
February 7, 2018, and shall continue in effect as provided in Annex I to 
this proclamation, unless such actions are earlier expressly reduced, 
modified, or terminated. Any modifications to the HTS made pursuant to 
clause (3) or (4) of this proclamation shall take effect as indicated in a 
Federal Register notice published in accordance with those clauses. One 
year from the termination of the safeguard measure established in this 
proclamation, the U.S. note and tariff provisions established in Annex I to 
this proclamation shall be deleted from the HTS.

(8) The modifications to the HTS set forth in Annex II to this proclamation 
shall be effective with respect to the articles entered, or withdrawn from 
warehouse for consumption, on or after the dates set forth in the relevant 
sections of Annex II.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                twenty-third day of January, in the year of our Lord 
                two thousand eighteen, and of the Independence of the 
                United States of America the two hundred and forty-
                second.
                
                
                    (Presidential Sig.)

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[FR Doc. 2018-01592
Filed 1-24-18; 2: pm]
Billing code 7020-02-C