US Expands Solar Import Quota to Support Growing Domestic Industry

In a significant development for the US solar industry, the US President Joe Biden has issued a new proclamation that modifies the existing safeguard measures on imports of crystalline silicon photovoltaic (CSPV) cells and modules.  

This decision follows extensive monitoring by the United States International Trade Commission (USITC) and a petition from the majority of domestic industry representatives, reflecting the ongoing adjustments within the industry to import competition. 

On September 19, 2023, representatives from the domestic industry submitted a petition seeking further modifications to the tariff-rate quota (TRQ). They argued that the industry had made significant progress in adjusting to import competition, as evidenced by the increase in domestic module production. However, they also pointed out the need for greater access to imported CSPV cells to meet the growing demand for domestic module production, suggesting either an elimination of the TRQ or an increase in its limit from 5 GW to 20 GW annually.

The original safeguard measures were established in January 2018 under Proclamation 9693. It introduced a TRQ on CSPV cell imports, along with an increase in duties on imports exceeding the TRQ and on all CSPV modules. These measures were designed to shield the domestic solar manufacturing industry from an overwhelming influx of imports that threatened its competitiveness and growth. Over the years, the TRQ and tariffs have undergone several adjustments to reflect the evolving needs of the industry.

In October 2020, Proclamation 10101 brought about key changes, including the revocation of an exclusion for bifacial modules and an increase in the safeguard tariff for the fourth year. These measures were further extended in February 2022 under Proclamation 10339, which continued the TRQ and the safeguard tariff on modules for an additional four years.

According to a midterm report from the USITC, issued in February 2024, these safeguard actions have led to substantial positive adjustments in the domestic industry, such as increased production capacity, new announcements of planned expansions, and improvements in financial, trade, and employment metrics.

Taking into account the USITC's findings and the petition from the industry, the President has determined that the domestic industry continues to make positive adjustments and that the TRQ should be expanded. The new proclamation increases the TRQ to 12.5 GW annually, a move aimed at balancing the need to protect domestic manufacturing while ensuring that the growing demand for solar products can be met. 

CSPV products entering the United States above the previous TRQ limit of 5 GW on or after August 1, 2024, will now fall under the modified TRQ limit. These products will only be subject to safeguard tariffs if their import volume exceeds the new 12.5 GW limit.

This adjustment will be implemented while maintaining the safeguard measures for another four years, with the goal of fostering a resilient and competitive US solar industry.