ExecutiveOrdersEO
Proc 9693ProclamationTrump 45 · R

Proclamation 9693

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

This proclamation imposes four-year safeguard tariffs on imported crystalline silicon photovoltaic (CSPV) solar cells and modules, including a tariff-rate quota on cells and increased duties on modules, following an ITC finding of serious injury to domestic producers. It also excludes certain developing WTO countries below import thresholds, establishes procedures for product exclusions, and makes technical corrections to Argentina's GSP beneficiary status.

Federal Register Open PDF 83 FR 3541

Impact dates

  1. Annual duty reductions in years 2, 3, and 4 of safeguard measure

  2. One year after safeguard measure termination, deletion of U.S. note and tariff provisions from HTS

  3. If WTO consultation determination made, corresponding reduction/modification/termination proclamation due

  4. USTR must publish Federal Register procedures for exclusion requests

  5. Deadline for presidential determination on WTO consultation necessity to reduce/modify/terminate safeguard

  6. Safeguard measure effective for goods entered or withdrawn from warehouse; foreign trade zone privileged foreign status requirement begins

Key directives

  • Impose tariff-rate quota on CSPV solar cells for 4 years with unchanging in-quota quantities and declining over-quota rates in years 2-4
  • Increase duties on CSPV modules for 4 years with annual reductions in years 2-4
  • Exclude developing WTO countries with under 3% individual import share and collective under 9%
  • USTR to publish exclusion request procedures within 30 days
  • USTR authorized to modify HTS to remove countries from developing country exclusion if thresholds exceeded
  • USTR may exclude particular products after consultation with Commerce and Energy Secretaries
  • Make technical corrections to HTS regarding Argentina GSP status
  • Supersede inconsistent prior proclamations and Executive Orders

Who is ordered

Timeline

Immediate

  • Safeguard measure takes effect February 7, 2018 for goods entered or withdrawn from warehouse
  • Foreign trade zone merchandise admitted as privileged foreign status

Near term (90d)

  • USTR must publish exclusion request procedures within 30 days (by February 22, 2018)
  • Potential presidential determination within 30 days on WTO consultations to reduce/modify/terminate measure
  • Corresponding proclamation within 40 days if WTO consultation determination made

Long term

  • Annual duty reductions in years 2-4 of safeguard measure
  • Measure terminates after 4 years unless extended
  • HTS provisions deleted one year after safeguard termination
  • Ongoing USTR monitoring of developing country import share thresholds

Risks & tensions

  • WTO dispute risk: safeguard measures frequently challenged under WTO Agreement on Safeguards; 30/40-day consultation provisions suggest anticipation of trade partner pushback
  • Mexico-Canada asymmetry: ITC found Mexico contributed importantly to injury but not Canada; yet paragraph 7 makes affirmative determination for both—potential legal vulnerability
  • Developing country threshold monitoring creates administrative burden and uncertainty for exporters
  • Solar industry split: domestic cell manufacturers benefit but downstream installers/developers face higher costs
  • Exclusion process timing (30 days) may create implementation gap before procedures exist
  • Paragraph 10 threshold language ('recent representative period') leaves ambiguity in calculation methodology
Proclamation 9693: 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 Orders