ITC Recommends Four-Year Extension to Solar Safeguards, Expects Cells to Exceed TRQ Soon

The International Trade Commission is recommending a four-year extension of Section 201 solar safeguard tariffs, with the rate of duty on solar modules and out-of-quota solar cells decreasing by 0.25% per year from its current level of 15% until it reaches 14% in the year prior to expiration in February 2026, the ITC said in a report sent to President Joe Biden, according to a notice released Dec. 13.

The quota quantity for the tariff-rate quota on solar cells would not change under the ITC’s recommendations. The tariff rate on over-quota solar cells, and on all solar modules, had been increased to 18% before the Court of International Trade in November struck down the proclamation that raised the tariffs from their original level of 15% (see 2111170038), with immediate effect, the ITC said. If they aren’t extended, the safeguards are set to expire Feb. 6, 2022.

The ITC also recommends a shift to administering the currently annual quota on imports of solar cells on a quarterly basis, it said in the report, which was transmitted to the president on Dec. 8. In the nearly four years that the safeguards have been in effect, solar cells imports have never exceeded the quota level of 2.5 gigawatts, the ITC said, so no tariffs have been collected on solar cells. But imports of solar cells are “anticipated to exceed the 2.5 GW in-quota amount,” possibly even this year, it said.

“Given the increased likelihood that imports of [crystalline silicon photovoltaic (CSPV)] cells may exceed the annual 2.5 GW in-quota limit in any extension period of the measure, and the possibility that U.S. importers would accordingly attempt to ‘front-end load’ their imports of CSPV cells in the early months of each 12-month period, we recommend that the annual quota on imports of CSPV cells be administered on a quarterly basis,” the ITC said.