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Proc 10339ProclamationBiden · D Quiet signal

Proclamation 10339

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

This proclamation extends for four years the safeguard tariffs and tariff-rate quota on imported crystalline silicon photovoltaic (solar) cells and modules originally imposed in 2018, while excluding bifacial panels. It maintains the 5.0 GW quota for unassembled cells and gradually reduces duty rates in years five through eight, and instructs USTR to negotiate with Canada and Mexico to prevent import circumvention.

Federal Register Open PDF 87 FR 7357

Impact dates

  1. U.S. note and tariff provisions in Annex I deleted from HTS one year after safeguard termination

  2. USITC midpoint monitoring report due during extension period

  3. Foreign trade zone admissions subject to privileged foreign status and applicable tariffs

Key directives

  • Extend TRQ on CSPV cells for additional 4 years with 5.0 GW annual quota and declining over-quota duties
  • Extend increased duties on CSPV modules for additional 4 years with annual reductions
  • Exclude bifacial panels from duty extension
  • Modify HTS per Annex I and II
  • Instruct USTR to negotiate with Canada and Mexico under section 203(f)
  • Authorize USTR to revise Note 18 based on import share thresholds or developing country status changes
  • Require foreign trade zone admissions on/after February 7, 2022 to be 'privileged foreign status'

Who is ordered

Timeline

Immediate

  • Safeguard measure extension takes effect February 7, 2022 for foreign trade zone admissions
  • HTS modifications per Annex I and II take effect

Near term (90d)

  • USTR to begin negotiations with Canada and Mexico under section 203(f)
  • Potential Federal Register notices for country removal from Note 18 if import thresholds exceeded

Long term

  • Annual duty reductions in years 5-8 of extended safeguard (2026-2029)
  • USITC midpoint monitoring report due during extension period
  • Automatic deletion of tariff provisions from HTS one year after safeguard termination (likely 2030)
  • President's evaluation after USITC midpoint report on whether to reduce/modify/terminate safeguard

Risks & tensions

  • Ongoing litigation risk: Government appealing SEIA case to Federal Circuit; judicial outcome could alter bifacial exclusion and fourth-year tariff rate
  • Trade tension with Canada and Mexico if negotiations fail or imports deemed undermining safeguard effectiveness
  • Price pressure on domestic cell manufacturers from continued cell imports within expanded TRQ
  • Potential WTO dispute given safeguard extension and country-specific exclusions
  • Uncertainty around midpoint USITC report timing and subsequent presidential action
Proclamation 10339: To Continue Facilitating Positive Adjustment to Competition From Imports of Certain Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or Fully Assembled Into Other Products) · Executive Orders