Suniva/SolarWorld Section 201 Solar Panel Proceeding

On May 23, 2017, the U.S. International Trade Commission ("USITC") initiated a proceeding under section 201 of the Trade Act of 1974 to determine if imports of crystalline solar photovoltaic ("CSPV") cells and modules are causing "serious injury" to domestic producers of CSPV cells and modules. If the USITC issues an affirmative injury determination in the proceeding, it will recommend to the President that he impose CSPV cell and module import restraints that would, in the agency's view, offset injury experienced by the U.S. CSPV industry. Under section 201, the President would then either accept the proposed remedy, adopt an alternative remedy, or impose no remedy at all.

This proceeding is of critical importance to the entire U.S. solar industry. Absent settlement of this controversy, it appears to us that, more likely than not, this case will lead to quantitative restraints on imports of solar cells and modules (perhaps negotiated with supplying nations), additional duties on imports of cells and modules, or both.

Key Aspect of the Proceeding

Expected Timing

Key features of the timeline for the proceeding are expected to be as follows:

September 22, 2017 USITC determination of whether imports cause serious injury

November 13, 2017 USITC submission of report to President on proposed remedy

January 12, 2018 President's decision on remedy and President's transmittal to Congress of the report describing the remedy and reasons for the Remedy

January 27, 2018 Effective date of remedy imposed by the President if that remedy is consistent with the remedy proposed by the USITC 1 and does not entail one or more agreements with foreign countries limiting the export of subject merchandise from foreign countries to the United States

April 12, 2018 Effective date of remedy proposed by the President if that remedy isconsistent with the remedy proposed by the USITC and entails agreements with foreign countries limiting the export of subject merchandise from foreign countries to the United States

Expected Remedy/Relief

The petitioners (Suniva and SolarWorld) propose four forms of relief:

A tariff on cell imports and a price floor on module imports; Distribution to U.S. producers of CSPV cells and modules and U.S. producers of polysilicon of antidumping and countervailing duties collected and still under suspension in the ongoing antidumping and countervailing duty cases targeting CSPV cells and modules from China and Taiwan; Creation of an economic...