On January 25, the Federal Register published two Presidential Proclamations implementing the safeguard measures previously announced and modifying the Harmonized Tariff Schedule of the United States (HTS). 

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

  • Applies to 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”) and specifically includes:
    • solar cells, whether or not assembled into modules or made up into panels provided for in subheading 8541.40.60 in Annex I to the proclamation;
    • parts or subassemblies of solar cells provided for in subheadings 8501.31.80, 8501.61.00, and 8507.20.80 in Annex I to the proclamation;
    • inverters or batteries with CSPV cells attached provided for in subheadings 8501.61.00 and 8507.20.80 in Annex I to the proclamation; and
  • DC generators with CSPV cells attached provided for in subheading 8501.31.80 in Annex I to the proclamation.
    Modifies subchapter III of chapter 99 of the HTS as provided in the Annex to the proclamation.  Any merchandise subject to the safeguard measure that is admitted into U.S. foreign trade zones on or after 12:01 a.m. EST, on February 7, 2018, must be admitted as “privileged foreign status” as defined in 19 C.F.R. 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. 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.
  • 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 the proclamation to remove the relevant country from the list or suspend operation of that subdivision, as appropriate.

  • 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 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.
  • 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 the proclamation.
  • Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in the proclamation is superseded to the extent of such inconsistency.
  • Except as provided for in clause (8) of the 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 the 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.
  • For imports of solar cells and modules, the President approved applying safeguard tariffs for the next four years with the following terms:
 

Year 1

2/7/18–2/6/19

Year 2

2/7/19–2/6/20

Year 3

2/7/20–2/6/21

Year 4

2/7/21–2/6/22

Safeguard Tariff on Modules and Cells 30% 25% 20% 15%
Cells exempted from Tariff 2.5 gigawatts 2.5 gigawatts 2.5 gigawatts 2.5 gigawatts

Proclamation 9694 of January 23, 2018 – To Facilitate Positive Adjustment to Competition From Imports of Large Residential Washers:

  • Applies to imported large residential washing machines and certain washer parts, including
    • all cabinets, or portions thereof, designed for use in washers;
    • all assembled tubs designed for use in washers which incorporate, at a minimum, a tub and a seal;
    • all assembled baskets designed for use in washers which incorporate, at a minimum, a side wrapper, a base, and a drive hub; and
    • any combination of the foregoing parts or subassemblies.
  • Modifies subchapter III of chapter 99 of the HTS as provided in the Annex to the proclamation.  Any merchandise subject to the safeguard measure that is admitted into U.S. foreign trade zones on or after 12:01 a.m. EST, on February 7, 2018, must be admitted as “privileged foreign status” as defined in 19 C.F.R. 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.
  • Excludes imports of washers and covered washer parts that are the product of Canada from the safeguard measure established in this proclamation, and such imports shall not be counted toward the tariff-rate quota limits that trigger the over-quota rates of duty.
  • Except as provided below, imports of washers and covered washer parts that are the product of WTO Member developing countries, as listed in subdivision (b)(2) of Note 17 in the Annex to the proclamation, shall be excluded from the safeguard measure established in this proclamation, and such imports shall not be counted toward the tariff-rate quota limits that trigger the over-quota rates of duties.
  • 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 (2) of Note 17 in the Annex to the 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)(2) of Note 17 in the Annex 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)(2) of Note 17 in the Annex to the proclamation to remove the relevant country from the list or suspend operation of that subdivision, as appropriate.

  • If, after the safeguard measure established in this proclamation takes effect, the USTR determines that the out-of-quota quantity in units of covered washer parts entered under the tariff lines in chapter 99 enumerated in the Annex to this proclamation has increased by an unjustifiable amount and undermines the effectiveness of the safeguard measure, the USTR is authorized, upon publishing a notice of such determination in the Federal Register, to modify the HTS provisions created by the Annex to this proclamation so as to modify the tariff-rate quota on covered washer parts with a quantitative restriction on covered washer parts at a level that the USTR considers appropriate.
  • 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.
  • The modifications to the HTS made in the proclamation, including the Annex hereto, shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on February 7, 2018, and shall continue in effect as provided in the Annex to this proclamation, unless such actions are earlier expressly reduced, modified, or terminated.  One year from the termination of the safeguard measure established in this proclamation, the U.S. note and tariff provisions established in the Annex to this proclamation shall be deleted from the HTS.

For imports of large residential washers, the President approved applying a safeguard tariff-rate quota for three years with the following terms:

 

Year 1

2/7/18 – 2/6/19

Year 2

2/7/19–2/6/20

Year 3

2/7/20–2/6/21

First 1.2 million units of imported finished washers 20% 18% 16%
All subsequent imports of finished washers 50% 45% 40%
Tariff on covered parts 50% 45% 40%
Covered parts excluded from tariff 50,000 units 70,000 units 90,000 units

USTR has prepared a Fact Sheet on these section 201 cases.