83 FR 47393 - Exclusion of Particular Products From the Solar Products Safeguard Measure

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Federal Register Volume 83, Issue 182 (September 19, 2018)

Pursuant to authority provided by the President, the U.S. Trade Representative (Trade Representative) has determined that particular products should be excluded from the safeguard measure applied to certain solar products and is modifying subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTS) as set forth in the Annex of this notice to implement these exclusions.

[Federal Register Volume 83, Number 182 (Wednesday, September 19, 2018)]
[Notices]
[Pages 47393-47394]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20342]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2018-0001]


Exclusion of Particular Products From the Solar Products 
Safeguard Measure

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: Pursuant to authority provided by the President, the U.S. 
Trade Representative (Trade Representative) has determined that 
particular products should be excluded from the safeguard measure 
applied to certain solar products and is modifying subchapter III of 
chapter 99 of the Harmonized Tariff Schedule of the United States (HTS) 
as set forth in the Annex of this notice to implement these exclusions.

DATES: The modifications to the HTS set forth in the Annex are 
applicable with respect to articles entered, or withdrawn from a 
warehouse for consumption, on or after 12:01 a.m. EST, on September 19, 
2018.

FOR FURTHER INFORMATION CONTACT: Victor Mroczka, Office of WTO and 
Multilateral Affairs, at [email protected] or (202) 395-9450, or 
Dax Terrill, Office of General Counsel, at [email protected] or 
(202) 395-4739.

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 13, 2017, the U.S. International Trade Commission (ITC) 
submitted a report to the President under section 201 of the Trade Act 
of 1974, as amended (19 U.S.C. 2251), finding that crystalline silicon 
photovoltaic (CSPV) cells and other CSPV products containing these 
cells 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 that is like or directly 
competitive with the imported products. The scope of this investigation 
did not cover:
     Thin film photovoltaic products produced from amorphous 
silicon (a-Si), cadmium telluride (CdTe), or copper indium gallium 
selenide (CIGS).
     CSPV cells, not exceeding 10,000 mm\2\ in surface area, 
that are permanently integrated into a consumer good whose primary 
function is other than power generation and that consumes the 
electricity generated by the integrated CSPV cell. Where more than one 
CSPV cell is permanently integrated into a consumer good, the surface 
area for purposes of this exclusion is the total combined surface area 
of all CSPV cells that are integrated into the consumer good.
     CSPV cells, whether or not partially or fully assembled 
into other products, if such CSPV cells were manufactured in the United 
States.
    The President, taking into consideration the separate 
recommendations of the ITC Commissioners on remedy and the 
recommendation of the Trade Policy Staff Committee, determined to take 
action and issued Proclamation 9693 on January 23, 2018, to impose a 
safeguard measure with respect to the imported CSPV products. The 
President determined to implement the safeguard measure as: (1) A 
tariff-rate quota on imports of CSPV cells not partially or fully 
assembled into other products, 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 the 
proclamation; and (2) an increase in duties on imports of CSPV products 
containing these cells, 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 the proclamation.
    The proclamation also excluded certain products from application of 
the safeguard measure. Specifically, the proclamation excluded the 
following:
     10 to 60 watt, inclusive, rectangular solar panels, where 
the panels have the following characteristics: (A) Length of 250 mm or 
more but not over 482 mm or width of 400 mm or more but not over 635 
mm, and (B) surface area of 1000 cm\2\ or more but not over 3,061 
cm\2\, provided that no such panel with those characteristics shall 
contain an internal battery or external computer peripheral ports at 
the time of entry.
     1 watt solar panels incorporated into nightlights that use 
rechargeable batteries and have the following dimensions: 58 mm or more 
but not over 64 mm by 126 mm or more but not over 140 mm.
     2 watt solar panels incorporated into daylight dimmers 
that may use rechargeable batteries, such panels with the following 
dimensions: 75 mm or more but not over 82 mm by 139 mm or more but not 
over 143 mm.
     Off-grid and portable CSPV panels, whether in a foldable 
case or in rigid form containing a glass cover, where the panels have 
the following characteristics: (a) A total power output of 100 watts or 
less per panel; (b) a maximum surface area of 8,000 cm\2\ per panel; 
(c) does not include a built-in inverter; and where the panels have 
glass covers, such panels must be in individual retail packaging (in 
this context, retail packaging typically includes graphics, the product 
name, its description and/or features, and foam for transport).
     3.19 watt or less solar panels, each with length of 75 mm 
or more but not over 266 mm and width of 46 mm or more but not over 127 
mm, with surface area of 338 cm\2\ or less, with one black wire and one 
red wire (each of type 22 AWG or 24 AWG) not more than 206 mm in length 
when measured from panel edge, provided that no such panel shall 
contain an internal battery or external computer peripheral ports.
     27.1 watt or less solar panels, each with surface area 
less than 3,000 cm\2\ and coated across the entire surface with a 
polyurethane doming resin, the foregoing joined to a battery charging 
and maintaining unit, such unit which is an acrylonitrile butadiene 
styrene (ABS) box that incorporates a light emitting diode (LED) by 
coated wires that include a connector to permit the incorporation of an 
extension cable.
    In addition to these exclusions, the proclamation directed the 
Trade Representative to publish a notice establishing procedures for 
interested persons to request the exclusion of particular products from 
the safeguard measure. The proclamation provided that if the Trade 
Representative, in consultation with the Secretaries of Commerce and 
Energy, determines that a particular product should be excluded, the 
Trade Representative can modify the HTS provisions created in Annex I 
of the proclamation to exclude the particular product from the 
safeguard measure through publication of the determination in the 
Federal Register.
    On February 14, 2018, the Office of the United States Trade 
Representative (USTR) published a notice establishing procedures to 
consider requests for exclusion of particular products from the 
safeguard measure. The notice

[[Page 47394]]

provided that requests for exclusion should identify the particular 
product in terms of the physical characteristics (e.g., dimensions, 
wattage, material composition, or other distinguishing characteristics) 
that distinguish it from other products that are subject to the 
safeguard measures. USTR noted that it would not consider requests that 
identify the product at issue in terms of the identity of the producer, 
importer, or ultimate consumer; the country of origin; or trademarks or 
tradenames. Furthermore, USTR confirmed that it only would grant those 
exclusions that do not undermine the objectives of the safeguard 
measure.
    Pursuant to that notice, USTR received 48 product exclusion 
requests and 213 subsequent comments responding to various requests. 
The types of products for which USTR received an exclusion request 
generally fall into seven categories: (1) Products that consist of 
attachments or other parts that can be mounted to solar products; (2) 
products that constitute 72-cell or greater panels; (3) products with 
particular configurations for additional performance; (4) products with 
specialized functions; (5) consumer and specialty products; (6) 
bifacial panels and bifacial solar cells; and (7) solar cells without 
busbars or gridlines and panels containing these solar cells.

II. Exclusions From the Safeguard Measure

    USTR has considered certain requests for exclusion of particular 
products and determined that exclusion of the CSPV products described 
in subdivisions (c)(iii)(7) through (c)(iii)(14) of U.S. note 18 to 
subchapter III of chapter 99 of the HTS, as amended in the Annex to 
this notice, from the safeguard measure established in Proclamation 
9693 would not undermine the objectives of the safeguard measure. 
Therefore, USTR finds that these CSPV products should be excluded from 
the safeguard measure. Accordingly, under the authority vested in the 
Trade Representative by Proclamation 9693, the Trade Representative 
modifies the HTS provisions created by the Annex to Proclamation 9693 
as set forth in the Annex to this notice.

III. Past Requests Not Addressed in This Notice

    The Trade Representative has not at this time made a determination 
with respect to the requests for exclusion, received as of March 16, 
2018, that are not addressed in the Annex to this notice. USTR will 
continue to evaluate those requests and the Trade Representative will 
make the appropriate determination in due course.

IV. Future Requests

    At this time, USTR is not considering additional requests for 
exclusion beyond those received as of March 16, 2018. USTR will monitor 
developments in the U.S. market for CSPV products and, if warranted, 
provide an opportunity to submit additional requests for exclusion at a 
future date.

V. Annex

    The following provisions supersede those currently in the HTS and 
are effective with respect to articles entered, or withdrawn from a 
warehouse for consumption, on or after 12:01 a.m., EST, on September 
19, 2018. The HTS is modified as follows:
    (1) U.S. note 18 to subchapter III of chapter 99 of the HTS is 
modified:
    (a) By inserting the following new subdivisions in numerical 
sequence at the end of subdivision (c)(iii):
    ``(7) off-grid, 45 watt or less solar panels, each with length not 
exceeding 950 mm and width of 100 mm or more but not over 255 mm, with 
a surface area of 2,500 cm\2\ or less, with a pressure-laminated 
tempered glass cover at the time of entry but not a frame, electrical 
cables or connectors, or an internal battery;
    (8) 4 watt or less solar panels, each with a length or diameter of 
70 mm or more but not over 235 mm, with a surface area not exceeding 
539 cm\2\, and not exceeding 16 volts, provided that no such panel with 
these characteristics shall contain an internal battery or external 
computer peripheral ports at the time of entry;
    (9) solar panels with a maximum rated power of equal to or less 
than 60 watts, having the following characteristics, provided that no 
such panel with those characteristics shall contain an internal battery 
or external computer peripheral ports at the time of entry: (A) Length 
of not more than 482 mm and width of not more than 635 mm or (B) a 
total surface area not exceeding 3,061 cm\2\;
    (10) flexible and semi-flexible off-grid solar panels designed for 
use with motor vehicles and boats, where the panels range in rated 
wattage from 10 to 120 watts, inclusive;
    (11) frameless solar panels in a color other than black or blue 
with a total power output of 90 watts or less where the panels have a 
uniform surface without visible solar cells or busbars;
    (12) solar cells with a maximum rated power between 3.4 and 6.7 
watts, inclusive, having the following characteristics: (A) A cell 
surface area between 154 cm\2\ and 260 cm\2\, inclusive, (B) no visible 
busbars or gridlines on the front of the cell, and (C) more than 100 
interdigitated fingers of tin-coated solid copper adhered to the back 
of the cell, with the copper portion of the metal fingers having a 
thickness of greater than 0.01 mm;
    (13) solar panels with a maximum rated power between 320 and 500 
watts, inclusive, having the following characteristics: (A) Length 
between 1,556 mm and 2,070 mm inclusive, and width between 1,014 mm and 
1,075 mm, inclusive, (B) where the solar cells comprising the panel 
have no visible busbars or gridlines on the front of the cells, and (C) 
the solar cells comprising the panel have more than 100 interdigitated 
fingers of tin-coated solid copper adhered to the back of the cells, 
with the copper portion of the metal fingers having thickness greater 
than 0.01 mm;
    (14) modules (as defined in note 18(g) to this subchapter) 
incorporating only CSPV cells that are products of the United States 
and not incorporating any CSPV cells that are the product of any other 
country.''

Jeffrey Gerrish,
Deputy U.S. Trade Representative.
[FR Doc. 2018-20342 Filed 9-18-18; 8:45 am]
 BILLING CODE 3290-F8-P