Crystalline Silicon Photovoltaic Cells

(Whether or not Partially or Fully

Assembled into Other Products)

Investigation No. TA-201-75

VOLUME I: DETERMINATION AND VIEWS OF COMMISSIONERS

Publication 4739 November 2017

U.S. International Trade Commission

Washington, DC 20436
U.S. International Trade Commission

COMMISSIONERS

Rhonda K. Schmidtlein, Chairman

David S. Johanson, Vice Chairman
Irving A. Williamson
Meredith M. Broadbent

Catherine DeFilippo
Director of Operations

Staff assigned
Mary Messer, Investigator
Andrew David, Industry Analyst
Deborah McNay, Industry Analyst
Aimee Larsen, Economist
David Riker, Economist
John Benedetto, Economist
David Boyland, Accountant
Russell Duncan, Statistician
Darlene Smith, Statistical Assistant
Mary Jane Alves, Attorney
William Gearhart, Attorney
John Henderson, Attorney
Michael Anderson, Supervisory Investigator
Special assistance from
Amanda Lawrence, Investigator

Address all communications to

Secretary to the Commission
United States International Trade Commission
Washington, DC 20436
 U.S. International Trade Commission
Washington, DC 20436
www.usitc.gov

Crystalline Silicon Photovoltaic Cells

(Whether or not Partially or Fully
Assembled into Other Products)

Investigation No. TA-201-75

VOLUME I: DETERMINATION AND VIEWS OF COMMISSIONERS

Publication 4739 November 2017




CONTENTS
Page

DeterminationandRemedyRecommendations......................................................................1
Commission'sViewsonInjury.................................................................................................5
ViewsonRemedyofChairmanRhondaK.Schmidtlein..........................................................81
ViewsonRemedyofViceChairmanDavidS.Johansonand
CommissionerIrvingA.Williamson...................................................................................89
ViewsofCommissionerMeredithM.BroadbentonRemedy..............................................105

Note.Informationthatwouldrevealconfidentialoperationsofindividualconcernsmaynot
bepublishedandthereforehasbeendeleted.Suchdeletionsareindicatedbyasterisks.

UNITEDSTATESINTERNATIONALTRADECOMMISSION

InvestigationNo.TA20175

CrystallineSiliconPhotovoltaicCells
(WhetherorNotPartiallyorFullyAssembledintoOtherProducts)

DETERMINATION

Onthebasisofinformationdevelopedinthesubjectinvestigation,theCommission
determinedpursuanttosection202(b)oftheTradeActof1974thatcrystallinesilicon
photovoltaiccells(whetherornotpartiallyorfullyassembledintootherproducts)(CSPV
products)arebeingimportedintotheUnitedStatesinsuchincreasedquantitiesastobea
substantialcauseofseriousinjurytothedomesticindustryproducinganarticlelikeordirectly
competitivewiththeimportedarticle.

Havingmadeanaffirmativeinjurydeterminationpursuanttosection202(b)ofthe
TradeActof1974,theCommissionwasrequiredtomakecertainadditionalfindingsunderthe
implementingstatutesofcertainfreetradeagreements(FTAs)orunderstatutoryprovisions
relatedtocertainpreferentialtradeprograms.Undersection311(a)oftheNAFTA
ImplementationAct(19U.S.C.3371(a)),theCommissionfoundthatimportsofCSPVproducts
fromMexicoaccountforasubstantialshareoftotalimportsandcontributeimportantlytothe
seriousinjurycausedbyimports.Under19U.S.C.3371(a),theCommissionalsofound,with
ChairmanRhondaK.Schmidtleindissenting,thatimportsofCSPVproductsfromCanadadonot
accountforasubstantialshareoftotalimportsanddonotcontributeimportantlytothe
seriousinjurycausedbyimports.TheCommissionfurtherfoundthatimportsofCSPVproducts
fromKoreaareasubstantialcauseofthreatofseriousinjury,butthatimportsofCSPVproducts
fromAustralia,theU.S.DominicanRepublicCentralAmericaFreeTradeAgreement
(CAFTADR)countries,Colombia,Jordan,Panama,Peru,andSingapore,individually,arenota
substantialcauseofseriousinjuryorthreatthereof,undertherespectiveimplementing
legislationfortheFTAswiththesecountries.See19U.S.C.2112note(Jordan);19U.S.C.
3805note(Australia,Colombia,Korea,Panama,Peru,Singapore);19U.S.C.4101(CAFTADR).
TheCommissionalsofoundthattheseriousinjurysubstantiallycausedbyimportstothe
domesticindustryproducingalikeordirectlycompetitivearticledoesnotresultfromthe
reductionoreliminationofanydutyprovidedforundertheU.S.IsraelFreeTradeAgreementor
fromdutyfreetreatmentprovidedforundertheCaribbeanBasinEconomicRecoveryAct
(CBERA)provisionsoftheCaribbeanBasinInitiativeTradeProgramortheGeneralizedSystem
ofPreferences(GSP)program.19U.S.C.2112note(Israel);19U.S.C.2703(e)(CBERA);19
U.S.C.2253(e)(6)(GSP).

REMEDYRECOMMENDATIONS

InordertoaddresstheseriousinjurytothedomesticindustryproducingCSPVproducts
andbemosteffectiveinfacilitatingtheeffortsofthedomesticindustrytomakeapositive
adjustmenttoimportcompetition,theCommissionrecommendedaseriesofactions.

WithregardtoCSPVcells,ChairmanSchmidtleinrecommendsatariffratequotawith
aninquotatariffrateof10percentadvaloremandaninquotavolumelevelof0.5gigawatts.
ForU.S.importsofcellsthatexceedthe0.5gigawattsvolumelevel,sherecommendsatariff
rateof30percentadvalorem.ChairmanSchmidtleinrecommendsthatthistariffratequotabe
implementedforfouryearsandthattheinquotalevelbeincrementallyraisedandthetariff
ratebeincrementallyreducedduringtheremedyperiod.WithregardtoCSPVmodules,she
recommendsanadvaloremtariffrateof35percenttobeincrementallyreducedduringthe
4yearremedyperiod.ChairmanSchmidtleinalsorecommendsthatthePresidentinitiate
internationalnegotiationstoaddresstheunderlyingcauseoftheincreaseinimportsofCSPV
productsandalleviatetheseriousinjurythereof.HavingmadefindingsthatU.S.importsfrom
Australia,theCAFTADRcountries,Colombia,Israel,Jordan,Panama,Peru,Singapore,andthe
beneficiarycountriesunderCBERAwerenotasubstantialcauseoftheseriousinjury
experiencedbythedomesticindustry,ChairmanSchmidtleinrecommendstothePresidentthat
U.S.importsfromthesecountriesbeexcludedfromtheremedy.

ChairmanSchmidtleinsRecommendedRemedy
Year1 Year2 Year3 Year4
Cells:TariffrateQuota
InQuotaTariffRate 10% 9.5% 9.0% 8.5%
InQuotaVolumeLevel 0.5gigawatts 0.6gigawatts 0.7gigawatts 0.8gigawatts
OutofQuotaTariffRate 30% 29% 28% 27%
Modules:Tariff(AdValorem) 35% 34% 33% 32%

ViceChairmanDavidS.JohansonandCommissionerIrvingA.Williamsonrecommend
thatfora4yearperiodthePresidentimpose(1)atariffratequotaonimportsofCSPV
productsincellform,and(2)increasedratesofdutyonimportsofCSPVproductsinmodule
form.ForimportsofCSPVproductsincellform,theyrecommendanadditional30percentad
valoremtariffonimportsinexcessof1gigawatt.Ineachsubsequentyear,theyrecommend
thatthistariffratedecreasebyfivepercentagepointsandthattheinquotaamountincrease
by0.2gigawatts.TherateofdutyoninquotaCSPVproductsincellformwillremain
unchanged.ForimportsofCSPVproductsinmoduleform,ViceChairmanJohansonand
CommissionerWilliamsonrecommendanadditional30percentadvaloremtariff,tobephased
downbyfivepercentagepointsperyearineachofthesubsequentyears.Havingmadea
negativefindingwithrespecttoimportsfromCanadaundersection311(a)oftheNorth
AmericanFreeTradeAgreementImplementationAct,theyrecommendthatsuchimportsbe
excludedfromtheabovetariffratequotaandincreasedratesofduty.Further,ViceChairman
JohansonandCommissionerWilliamsonrecommendthattheabovetariffratequotaand

increasedratesofdutynotapplytoimportsfromthefollowingcountrieswithwhichtheUnited
StateshasFTAs:Australia,Colombia,CostaRica,theDominicanRepublic,ElSalvador,
Guatemala,Honduras,Israel,Jordan,Nicaragua,Panama,Peru,andSingapore.Theyalso
recommendthatthetariffratequotaandincreasedratesofdutynotapplytoimportsfromthe
CBERAbeneficiarycountries.ViceChairmanJohansonandCommissionerWilliamson
recommendthatthePresidentdirecttheUnitedStatesDepartmentofLaborandtheUnited
StatesDepartmentofCommercetoprovideexpeditedconsiderationofanyapplicationfor
tradeadjustmentassistanceforworkersand/orfirmsthatareaffectedbysubjectimports.They
recommendthePresidentsconsiderationoftheproductexclusionsrequestedbyRespondents
towhichPetitionershavenotobjectedandhaveindicatedtheywouldworktodraft
appropriateproductspecificexclusions.Finally,theyrecommendthatthePresidentalso
consideranyappropriatefundingmechanismsthatmayfacilitateapositiveadjustmentto
importcompetition.

CommissionerMeredithM.BroadbentrecommendsthatthePresidentimposea
quantitativerestrictiononimportsofCSPVproductsintotheUnitedStates,includingcellsand
modules,forafouryearperiod,administeredonaglobalbasis.Sherecommendsthatthe
quantitativerestrictionbesetat8.9gigawattsinthefirstyearandincreaseby1.4gigawatts
eachsubsequentyear.Inaccordancewithsection1102oftheTradeAgreementsActof1979
(19U.S.C.2581)andthePresidentsauthorityinsection203(a)(3)(F)oftheTradeActof1974
(19U.S.C.2253(a)(3)(F)),shealsorecommendsthatthePresidentadministerthese
quantitativerestrictionsbysellingimportlicensesatpublicauctionataminimumpriceofone
centperwatt.SherecommendsthatthePresident,totheextentpermittedbylaw,authorize
theuseoffundsequaltotheamountgeneratedbyimportlicenseauctionstoprovide
developmentassistancetodomesticCSPVproductmanufacturersforthedurationofthe
remedyperiod,suchasthroughauthorizedprogramsattheUnitedStatesDepartmentof
Energy(DOE).CommissionerBroadbentalsorecommendsthatthePresidentimplementother
appropriateadjustmentmeasures,includingtheprovisionoftradeadjustmentassistanceby
theUnitedStatesDepartmentofLaborandtheUnitedStatesDepartmentofCommerceto
workersandfirmsaffectedbyimportcompetition.Havingmadeanaffirmativefindingwith
respecttoimportsfromMexicoundersection311(a)oftheNAFTAImplementationAct,she
recommendsthatthePresidentallocatenolessthan720megawattstoMexicoduringthefirst
yearwithintheglobalquantitativerestriction,whichwouldexpandby115megawattseach
year.HavingmadeanegativefindingwithrespecttoimportsfromCanadaundersection311(a)
oftheNAFTAImplementationAct,CommissionerBroadbentrecommendsthatsuchimportsbe
excludedfromthequantitativerestriction.Furthermore,sherecommendsthatthisquantitative
restrictionnotapplytoimportsfromAustralia,theCAFTADRcountries,Colombia,Israel,
Jordan,Panama,Peru,Singapore,andtheCBERAbeneficiarycountries.

CommissionsViewsonInjury
Basedonthefactsinthisinvestigation,wedeterminepursuanttosection202(b)ofthe
TradeActof1974(TradeAct)1thatcrystallinesiliconphotovoltaiccells(whetherornot
partiallyorfullyassembledintootherproducts)(CSPVproducts)arebeingimportedintothe
UnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjurytothe
domesticindustryproducinganarticlelikeordirectlycompetitivewiththeimportedarticle.2
Havingmadeanaffirmativedeterminationinthisglobalsafeguardinvestigation,weare
requiredtomakecertainadditionalfindingsundertheimplementingstatutesofcertainfree
tradeagreements(FTAs)orunderstatutoryprovisionsrelatedtocertainpreferentialtrade
programs.3WefindthatimportsofCSPVproductsfromMexicoaccountforasubstantialshare
oftotalimportsandcontributeimportantlytotheseriousinjurycausedbyimports.4Wealso
findthatimportsofCSPVproductsfromCanadadonotaccountforasubstantialshareoftotal
importsanddonotcontributeimportantlytotheseriousinjurycausedbyimports.5Wefind

1
19U.S.C.2252(b).
2
TheCommissionsaffirmativeseriousinjurydeterminationisunanimous,reflectingtheviews
ofChairmanRhondaK.Schmidtlein,ViceChairmanDavidS.Johanson,andCommissionersIrvingA.
WilliamsonandMeredithM.Broadbent.
3
Specifically,theCommissionisrequiredtomakecertainadditionalfindingsunderthe
implementingstatutesfortheNorthAmericanFreeTradeAgreement(NAFTA)(CanadaandMexico),
theU.S.DominicanRepublicCentralAmericaFreeTradeAgreement(CAFTADR)(CostaRica,
ElSalvador,Guatemala,Honduras,Nicaragua,andtheDominicanRepublic),theU.S.AustraliaFree
TradeAgreement,theU.S.KoreaFreeTradeAgreement(KORUS),theU.S.ColombiaTradePromotion
Agreement,theAgreementbetweentheUnitedStatesofAmericaandtheHashemiteKingdomof
JordanontheEstablishmentofaFreeTradeArea,theU.S.PanamaTradePromotionAgreement,the
U.S.PeruFreeTradeAgreement,theU.S.SingaporeFreeTradeAgreement,andtheU.S./IsraelFree
TradeAgreementorunderstatutoryprovisionsrelatedtopreferentialtradeprograms(CaribbeanBasin
EconomicRecoveryAct(CBERA)andGeneralizedSystemofPreferences(GSP)).See19U.S.C.2112
note(Jordan,Israel);19U.S.C.2253(e)(6)(GSP);19U.S.C.2703(e)(CBERA);19U.S.C.3371
(NAFTA);19U.S.C.3805note(Australia,Colombia,KORUS,Panama,Peru,Singapore);19U.S.C.4101
(CAFTADR).
4
TheCommissionsfindingregardingimportsofCSPVproductsfromMexicoundersection
311(a)oftheNAFTAImplementationAct(19U.S.C.3371(a))reflectstheviewsofChairman
Schmidtlein,ViceChairmanJohanson,andCommissionersWilliamsonandBroadbent.Asdiscussedin
moredetailinsectionIIIbelow,inthisinvestigation,wemeasuredU.S.importsfromCanadaand
Mexicousingquestionnairedatabasedonthemoduleassemblylocationandmeasuredimportsfromall
othersourcesbasedonadjustedU.S.importerquestionnairedatathatarebasedonthemanufacturing
locationoftheCSPVcell.
5
TheCommissionsfindingregardingimportsofCSPVproductsfromCanadaundersection
311(a)oftheNAFTAImplementingAct(19U.S.C.3371(a))reflectstheviewsofViceChairman
JohansonandCommissionersWilliamsonandBroadbent.Asexplainedbelow,ChairmanSchmidtlein
doesnotjoinsectionV.A.1oftheseViews.Shefindsundersection311(a)oftheNAFTAImplementation
(Continued)

thatimportsofCSPVproductsfromKoreaareasubstantialcauseofthreatofseriousinjury,but
thatimportsofCSPVproductsfromAustralia,CAFTADRcountries,Colombia,Jordan,Panama,
Peru,andSingapore,individually,arenotasubstantialcauseofseriousinjuryorthreatthereof,
undertherespectiveimplementinglegislation.6Wealsofindthattheseriousinjury
substantiallycausedbyimportstothedomesticindustryproducingalikeordirectly
competitivearticledoesnotresultfromthereductionoreliminationofanydutyprovidedfor
undertheU.S.IsraelFreeTradeAgreement7orfromdutyfreetreatmentprovidedforunder
theCaribbeanBasinEconomicRecoveryActprovisionsoftheCaribbeanBasinInitiativeTrade
ProgramortheGSPprogram.8

I. Background
EffectiveMay17,2017,theCommissioninstitutedthisinvestigation,Inv.No.201TA75,
inresponsetoapetition,asamendedandproperlyfiledonMay17,2017bySuniva,Inc.
(Suniva),aproducerofcrystallinesiliconphotovoltaic(CSPV)cellsandCSPVmodulesinthe
UnitedStates.9OnMay25,2017,SolarWorldpubliclystateditssupportforthepetitionasa
copetitioner.10

(Continued)
Act(19U.S.C.3371(a))thatimportsofCSPVproductsfromCanadaaccountforasubstantialshareof
totalimportsandcontributeimportantlytotheseriousinjurycausedbyimports.
6
TheCommissionsfindingsregardingimportsofCSPVproductsfromAustralia,CAFTADR
countries,Colombia,Jordan,Korea,Panama,Peru,andSingaporereflecttheviewsofChairman
Schmidtlein,ViceChairmanJohanson,andCommissionersWilliamsonandBroadbent.
7
19U.S.C.2112note,U.S./IsraelFTAImplementingAct403(b),403(d).
8
19U.S.C.2253(e)(6),2703e(2),2703e(4).TheCommissionsfindingsregardingimportsfrom
Israel,CBERAcountries,andGSPtradepreferencecountriesreflecttheviewsofChairmanSchmidtlein,
ViceChairmanJohanson,andCommissionersWilliamsonandBroadbent.
9
82Fed.Reg.25331(June1,2017).SunivainitiallysubmittedapetitiononApril26,2017.
OnMay1,2017,CommissionstaffissuedaletterrequestingthatSunivaclarifyitsdescriptionofthe
importedarticlesintendedtobecoveredbythepetition,providemoredetailsconcerningwhether
Sunivawasrepresentativeofanindustrywithinthemeaningof19U.S.C.2252(a)(1),andsupply
additionaldataontheperformanceindicatorsfortheindustryproducinganarticlelikeordirectly
competitivewiththeimportedarticle.OnMay12,2017,Sunivaprovidedadditionalinformationto
supportitsallegations(includinganaffidavitindicatingthat***supportedthepetition).SunivasMay
12,2017responseatExhibit6.OnMay17,2017,Sunivafurtheramendeditspetitionandprovideda
reviseddescriptionoftheimportedarticles.TheCommissiondeterminedthatthepetition,asamended,
wasproperlyfiledasofMay17,2017.
10
ConfidentialReport,MemorandumINVPP119(Sept.11,2017),ascorrectedby
MemorandumINVPP139(Oct.31,2017)(CR)atI1;PublicReport,CrystallineSiliconPhotovoltaic
Cells(WhetherorNotPartiallyorFullyAssembledintoOtherProducts),Inv.No.201TA75,USITCPub.
4739(Nov.2017)(PR)atI1.Togetherthetwopetitionersaccountedforthevastmajority(***
percentofU.S.CSPVcellproductionbykWin2016,andforalargemajority(***percent)ofmodule
assemblyduringtheJanuary1,2012toDecember31,2016periodofinvestigation(POI).CRatIII22,
III23;PRatIII11;CR/PRatTableIII5,TableIII7,TableIII8.

PursuanttotheschedulingnoticepublishedintheFederalRegisteronJune1,2017,the
CommissionheldapublichearingoninjuryissuesonAugust15,2017,11andvotedwithrespect
toinjuryissuesonSeptember22,2017.12TheCommissionheldapublichearingonremedy
issuesonOctober3,2017,votedwithrespecttoremedyissuesonOctober31,2017,and
transmitteditsreporttothePresidentonNovember13,2017.
PartiesandNonPartiestotheInvestigation.RepresentativesofcopetitionersSuniva
andSolarWorldappearedatthehearingsoninjuryandremedyissuesaccompaniedbycounsel,
andtheysubmittedprehearingandposthearingbriefsoninjuryandremedy.
Severalrespondentinterestedpartiesalsoparticipatedintheinvestigation.Thefive
setsofinterestedpartiesthatappearedattheinjuryandremedyhearingswithcounseland
submittedprehearingandposthearingbriefsoninjuryandremedyissuesincludedthe
following:CanadianSolarSolutions,Inc.(CanadianSolar),SilfabSolarInc.(SilfabSolar),and
HelieneInc.(Heliene)(collectivelyCanadianrespondents);13theSolarEnergyand
PhotovoltaicProductsBranchoftheChinaChamberofCommerceforImportandExportof
MachineryandElectronicProducts(CCCME);14theKoreaPhotovoltaicIndustryAssociation
(KOPIA);15RECSolarPte.Ltd.andRECAmericas,LLC(RECAmericas)(collectivelyREC
Solar);16andSunPowerCorp.,SunPowerCorporationSystems,SunPowerNorthAmerica,LLC,
SunPowerCorp.Mexico,S.deR.L.deC.V.,SunPowerPhilippinesManufacturingLtd.,and
SunPowerSolarMalaysiaSdn.Bhd.(collectivelySunPower).17Asixthgroupofinterested

11
SeeTranscriptofCommissionsAugust15,2017HearingonInjuryIssues(InjuryHearingTr.).
12
82Fed.Reg.25331(June1,2017).
13
CanadianSolar,SilfabSolar,andHelieneareproducersandexportersofCSPVcellsand
CSPVmodulesfromCanada.CanadianrespondentsPrehearingInjuryBriefat4.
14
CCCMEmembersproduceCSPVcellsandCSPVmodulesinChina.CCCCMEsPrehearingInjury
Briefat1,Exhibit1.
15
HanwhaQCELLSAmerica,Inc.(HanwhaAmerica)submittedprehearingandposthearing
briefsoninjuryissues.HanwhaAmericaisanimporterwithaffiliatesthatmanufactureCSPVcells
and/orCSPVmodulesinCanada,China(includingHongKong),Germany,Korea,andMalaysia.CR/PR
atTablesIV18toIV19;HanwhaAmericasPrehearingInjuryBriefat910.
16
RECSolarandRECAmericasareaforeignproducer/exporterandanimporterofCSPV
productsfromSingapore.RECSolarsPrehearingInjuryBriefat8.
17
SunPowerreportsthatitinvestsinU.S.researchanddevelopmenttosupportthe
manufactureofCSPVcellsandCSPVmodules,manufacturesCSPVcellsinMalaysiaandthePhilippines,
assemblesCSPVcellsintomodulesinMexico,andatthebeginningofthePOIassembledmodulesinthe
PhilippinesfromaChinesetollproducer(***).SunPowersPrehearingInjuryBriefat23.SunPower
recentlyenteredintoaCSPVcellandCSPVmodulemanufacturingjointventureinChinathatitreports
willbeentirelydedicatedtononU.S.markets.SunPowersPosthearingInjuryBriefat11,Appendixat
vii.Additionally,SunPowerinvested$25millioninaU.S.CSPVcellandCSPVmodulefacilityinSanJose,
CAwhereitbeganproductioninMay2017withthestatedintentiontoserveresidentialandcommercial
applications.SunPowersPosthearingInjuryBrief,Appendixati.Itpreviouslypartneredwith
FlextronicstomanufactureCSPVmodulesinMilpitas,CA,butthatfacilitywasnotadequatelyscaled,so
SunPowerdetermineditwasmorecostadvantageoustointegratetheknowledgedevelopedatthe
Milpitasfacilityintoitsothermanufacturinglocations.Id.atii.

parties(VinaSolarTechnologyCo.Ltd.(VinaSolar);BovietSolarUSALtd.(BovietUSA);and
BovietSolarTechnologyCo.,Ltd.(Boviet)(collectivelyVietnameseRespondents))submitted
jointprehearingbriefsoninjuryandprehearingandposthearingbriefsonremedy.18Seven
interestedpartiessubmittedprehearingandposthearingbriefsonremedy(AuxinSolar,19
ChangzhouTrina,20GoalZeroLLC,21MissionSolar,22NextEraEnergyInc.,23Solatube
InternationalInc.,24andtheTaiwanPhotovoltaicIndustryAssociation(TPVIA)),25andtwo
otherinterestedparties(SunrunandTesla)submittedposthearingbriefsonremedy.26
Exceptasotherwiseindicated,thefollowingelevenforeigngovernmentsfiled
prehearinginjuryandremedysubmissionsanddeliveredoralstatementsattheCommissions
hearingsoninjuryandremedy:Brazil,Canada(alsofiledposthearingsubmissionsoninjuryand
remedy);China(onlyfiledposthearinginjuryandremedysubmissions);EuropeanCommission;
Indonesia(alsofiledaposthearinginjurysubmission);Korea(alsofiledaposthearingremedy
submission);Mexico(alsofiledaposthearinginjurysubmission);Singapore(onlyfileda
prehearinginjurysubmission);Thailand(onlyfiledaprehearinginjurysubmissionanda
posthearingremedysubmission);Taiwan(alsofiledaposthearingremedysubmission);and
Vietnam(onlyfiledaposthearingremedysubmission).
Fortyninefirms,industrygroups,orotherorganizationsthatarenotinterestedparties
and/orarenotpartiestotheinvestigationalsofiledsubmissionsoninjuryand/orremedy
issues.27Oneofthem,SEIA,whichisnotaninterestedpartyassociation,28filedjoint

18
VinaSolar,BovietUSA,andBovietareforeignproducersorimportersofmerchandisefrom
Vietnam.CR/PRatTableI3,TableIV68.
19
AuxinSolarisaU.S.producerofCSPVproducts.CR/PRatTableIII3.
20
ChangzhouTrinaSolarisaforeignproducerofCSPVproducts.
21
GoalZeroisanimporterofCSPVproducts.CR/PRatTableII3.
22
MissionSolarisaU.S.producerandimporterofCSPVproducts.CR/PRatTableI2,TableI3.
23
NextEraEnergyisanimporterofCSPVproducts.CR/PRatTableII3.
24
SolatubeisanimporterofCSPVproducts.CR/PRatTableII3.
25
TPIAisanassociation,amajorityofwhichareproducersandexportersfromTaiwan.
26
SunrunisanimporterofCSPVproducts,andTeslaisanimporter,producer,andpurchaser.
27
Eachofthefollowingfirms,groups,orotherorganizationssubmittedstatementsoninjury
and/orremedy:AdvancedEnergyBuyersGroup(coalitionoflargeenergybuyers);AllianceforAmerican
Manufacturing(domesticlabor/businesspartnership);AlmondAllianceofCalifornia;AmericanCouncil
onRenewableEnergy(nonprofitorganizationrepresentingrenewableenergydevelopers,
manufacturers,financialinstitutions,corporateendusers,utilities,andgridtechnologyproviders);
ArcadiaPower(renewableenergysoftwareandtechnologycompany);BlueGreenEnergyLLCCarolina
SolarEnergy(developerofutilitysolarprojectsinNorthCarolinaandVirginia);CaliforniaCitrusMutual;
CaliforniaCottonGinnersandGrowersAssociation;CaliforniaFreshFruitAssociation;CaliforniaPoultry
Association;CenterforBiologicalDiversity;CoalitionforProsperousAmerica(coalitionof
manufacturers,agricultural,worker,consumerandcitizeninterests);ColoradoCleantechIndustries
Association;CompleteSolar(designerandinstaller);DukeEnergy(energyprovider);DuPont
PhotovoltaicandAdvancedMaterials(manufacturerofpasteandfilmrawmaterialsandphotovoltaic
systemowneranduser);ElectricalReliabilityCoordinatingCouncil(coalitionofpowergenerating
companies);DavidEllis;EnergyTradeActionCoalition;EnerparcInc.(engineeringservicesprovider);
(Continued)

submissionsoninjuryissueswithoneofitsimporter/foreignproducermembers(SunPower);
manyrespondentinterestedpartiesexpresslysupportmost,ifnotall,ofSEIAsarguments,so
itsargumentsmaybereferredtohereinasrespondentsarguments.
DataCoverage.U.S.industrydataarebasedonquestionnaireresponsesfrom16firms
thatareestimatedtohaveaccountedforallknownU.S.productionofCSPVcellsand
63.9percentofU.S.productionofCSPVmodulesin2015.29U.S.importdataarebasedon
questionnaireresponsesof56firmsthatareestimatedtohaveaccountedfor82.6percentof
U.S.importsofCSPVcellsandCSPVmodulesin2016.30TheCommissionalsoreceived
questionnaireresponsesfrom100foreignproducers/exportersofCSPVproducts.31

(Continued)
EnphaseEnergy,Inc.(U.S.producerofsolarmicroinverters);FirstSolar(formerproducerofCSPV
products,thinfilmproducer,projectdeveloper,engineering,procurement,construction,operation,and
managementservicesprovider);GeorgiaChamberofCommerce;Gigawatt(developer,distributor,
installer);HenryHielsmair(consultant);HeritageFoundation(nonprofitresearchinstitution);Hunter
Humphrey(solardeveloper);InovateusSolar(projectdeveloper);MountingSystemManufacturers;
NationalElectricalContractorsAssociation;NationalGrid(energyprovider);OnyxSolarEnergy
(developer,manufacturerofarchitecturalphotovoltaicglass);PG&ECorp.andEdisonInternational
(utilities);PTSkyEnergyIndonesia(foreignproducer/exporterfromIndonesia);RStreet(thinktank);
RECOMAG(modulemanufacturerinEurope,powerdistributor);DanReicher;SeminoleFinancial
Services;SigoraSolar(designerandinstaller);SKC(manufacturerofethylvinylacetatesheets);Solar
EnergyIndustriesAssociation(SEIA)(nonprofittradeassociationofinstallers,projectdevelopers,
contractors,andfinancers);ShanghaiBYDCo.andBYD(Shanghai)IndustrialCo.Ltd.(foreignproducer);
SteelManufacturersAssociation;Sunfolio&OnePlanetInfrastructure(developer);SunTegra(developer
andsellerofsmaller,lowwattagesolarproducts);Technet(networkoftechnologychiefexecutive
officersandseniorexecutives);U.S.polysiliconindustry(HemlockSemiconductorOperationsLLC,
WackerPolysiliconNorthAmericaLLC,andRECSiliconInc.);WesternAgriculturalProcessors
Association;and8minutenergyRenewables(8minutenergy)(projectdeveloper)(supportedbynon
partyutilitysolardevelopers174PowerGlobalCorporation,CypressCreekRenewables,andIntersect
Power).
28
Interestedpartiesinclude,amongothers,foreignmanufacturers,producers,exporters,orU.S.
importersofanarticlewhichisthesubjectofaninvestigation,foreigngovernments,U.S.
manufacturers,producers,orwholesalers,andcertifiedunionsorrecognizedunionsorgroupsof
workersthatarerepresentativeofadomesticindustry.Certainassociationsarealsointerestedparties,
ifamajorityoftheirmembersiscomposedofinterestedparties.19C.F.R.206.17(a)(3)(iii).Amajority
ofSEIAsmembers,however,isnotcomposedofinterestedparties,soitisnotaninterestedparty.EDIS
Doc.612890.
29
CRatI4;PRatI3.
30
CRatI5;PRatI3.Respondentsstatethatimporterquestionnairedatarepresentthevast
bulkofimportsofsubjectmerchandiseintotheU.S.market.SEIAsPosthearingInjuryBrief,
AppendixAat107108(attributingatleastaportionofthedifferentialbetweenimporterquestionnaire
dataandofficialimportstatisticstooutofscopethinfilm).
31
Foreignproducerresponsesandtheestimatedcoverageforeachcountryareasfollows:
Brazil(1firmaccountingforlessthan***percentofmoduleproductioncapacity);Canada(5firms
accountingforapproximately89percentof2016modulecapacity);China(35firmsaccountingfor
approximately57percentofCSPVcellproductionand67percentofmoduleproductionin2016);
(Continued)

II. DomesticIndustryProducingaProductthatisLike
orDirectlyCompetitivewiththeImportedArticle
A. LikeorDirectlyCompetitiveDomesticProduct

Inmakingdeterminationsinglobalsafeguardinvestigations,theCommissionexamines
threestatutorycriteria.Specifically,tomakeanaffirmativedetermination,theCommission
mustfind

(1)anarticleisbeingimportedintotheUnitedStatesinincreasedquantities;
(2)thedomesticindustryproducinganarticlethatislikeordirectlycompetitive
withtheimportedarticleisseriouslyinjuredorthreatenedwithseriousinjury;
and
(3)thearticleisbeingimportedinsuchincreasedquantitiesastobea
substantialcauseofseriousinjuryorthreatofseriousinjurytothedomestic
industry.32

Beforeconsideringwhetherthethreestatutorycriteriaaresatisfied,theCommission
firstdefinesthedomesticindustry.Thestatutedefinesthetermdomesticindustryasthe
producersasawholeofthelikeordirectlycompetitivearticleorthoseproducerswhose
collectiveproductionofthelikeordirectlycompetitivearticleconstitutesamajorproportionof
thetotaldomesticproductionofsucharticle.33TheCommissiondefinesthedomesticindustry

(Continued)
Germany(6firmsaccountingforallknownCSPVcellcapacityand51percentofmoduleproduction
capacityin2016);India(5firmsaccountingforapproximately***percentofCSPVcellproduction
capacityand***percentofmoduleproductioncapacity);Indonesia(3firmsaccountingfor
approximately***percentofmoduleproductioncapacity);Japan(1firmaccountingforapproximately
***percentofCSPVcellproductionand***percentofmoduleproductionin2016);Korea(4firms
accountingforapproximately***percentofCSPVcellproductioncapacityand***percentofmodule
productioncapacityin2016);Malaysia(10firmsaccountingforallknownCSPVcellcapacityand
93percentofmodulecapacityin2015);Mexico(3firmsaccountingforapproximately***percentof
CSPVcellcapacityandapproximately***percentofmodulecapacityin2016);Netherlands(1firm
accountingforallknownproduction);Philippines(1firmaccountingforallknownproduction);
Singapore(1firmaccountingforallknownproduction);Taiwan(15firmsaccountingforapproximately
82percentofCSPVcellcapacityand31percentofmodulecapacityin2016);Thailand(4firms
accountingforapproximately52percentofCSPVcellproductioncapacityin2016and44percentof
modulecapacityin2016);Vietnam(5firmsaccountingforapproximately***percentofCSPVcell
capacityand***percentofmodulecapacityin2016).CRatI5toI7;PRatI3toI5.Respondents
statethattotheextentthatdatafromanymajorCSPVexportingcountryweremissing,the
CommissionsPrehearingReportprovidedadequatecoverageofsuchcountriesusingalternativedata
sources.SEIAsPosthearingInjuryBrief,Appendix1at107108.
32
See19U.S.C.2252(b)(1)(A).
33
19U.S.C.2252(c)(6)(A)(1).

10


intermsofeachlikeordirectlycompetitiveproductandevaluatestheimpactofthepertinent
importsonthefacilitiesandworkersproducingeacharticle.34
Thelegislativehistorydistinguishesbetweenproductsthatarelikeandproductsthat
aredirectlycompetitivewiththeimportedarticles,explainingthatlikearticlesarethose
whicharesubstantiallyidenticalininherentorintrinsiccharacteristics(i.e.,materialsfrom
whichmade,appearance,quality,texture,etc.),whereasdirectlycompetitivearticlesare
thosewhich,aresubstantiallyequivalentforcommercialpurposes,thatis,areadaptedtothe
sameusesandareessentiallyinterchangeabletherefor.35
Indeterminingwhatconstitutesthelikeordirectlycompetitiveproduct,the
Commissionhasconsideredanumberoffactors.Thelistoffactorsconsideredisnotfixed,and
theweightgiventoanyonefactormayvaryfromcasetocasedependinguponthefacts.36The
list,whichderivesfromCommissionpractice,hasincludedthephysicalpropertiesofthearticle,
itscustomstreatment,itsmanufacturingprocess(whereandhowitismade,e.g.,inaseparate
facility,usingcertainmachinesandlaborskills),theproductsuses,andthemarketingchannels
throughwhichtheproductissold.37Thestatutedoesnotprescribethesespecificfactorsnor
doesitlimitthefactorsthattheCommissionmayconsiderinmakingitsdetermination.Thus,
inconductingitsanalysis,theCommission(1)considersthelistoffactors,(2)evaluatesthe
factorsintermsofthefactsintheinvestigation,and(3)looksforcleardividinglinesbetween
products,disregardingminorvariations.38

34
See,e.g.,Steel,Inv.No.201TA73,USITCPub.3479at29n.25(Dec.2001);ExtrudedRubber
Thread,Inv.No.201TA72,USITCPub.3375atI8(Dec.2000);CrabmeatfromSwimmingCrabs,Inv.
No.201TA71,USITCPub.3349atI8toI9(Aug.2000);CircularWeldedCarbonQualityPipe,Inv.
No.201TA70,USITCPub.3261atI12toI13(Dec.1999);CertainSteelWireRod,Inv.No.201TA69,
USITCPub.3207atI10,I36(Jul.1997).
35
H.R.Rep.No.571,93rdCong.,1stSess.45(1973);SenateFinanceCommittee,ReportonTrade
ReformActof1974H.R.10710,S.Rep.No.1298,93rdCong.,2dSess.at12122(1974).See,e.g.,
Mushrooms,Inv.No.201TA43,USITCPub.1089at8,1112(Aug.1980)(theintentofthedrafting
committeeswasthatlikehastodowiththephysicalidentityofthearticlesthemselves,whiledirectly
competitiverelatesmoretothenotionofcommercialinterchangeableness);seealsoUnitedShoe
WorkersofAm.v.Bedell,506F.2d174,18586,19091(D.C.Cir.1974)(discussingmeaningoflikeand
directlycompetitiveinthecontextofarequestforadjustmentassistanceundertheTradeExpansion
Act).
36
See,e.g.,CertainSteelWireRod,Inv.No.201TA69,USITCPub.3207atI8(Jul.1999);Lamb
Meat,Inv.No.201TA68,USITCPub.3176atI10(Apr.1999);WheatGluten,Inv.No.201TA67,USITC
Pub.3088atI9(Mar.1998).
37
See,e.g.,ExtrudedRubberThread,Inv.No.201TA72,USITCPub.3375atI5toI6
(Dec.2000);CircularWeldedCarbonQualityLinePipe,Inv.No.201TA70,USITCPub.3261atI10
(Dec.1999);AppleJuice,Inv.No.201TA69,USITCPub.1861at310(June1986);FreshWinter
Tomatoes,Inv.No.201TA64(ProvisionalReliefPhase),USITCPub.2881atI7(Apr.1995)(Viewsof
Watson,Crawford,andBragg);BroomCornBrooms,Inv.No.302NAFTA1(ProvisionalReliefPhase),
USITCPub.2963atI14(May1996).
38
See,e.g.,StainlessSteelTableFlatware,Inv.No.201TA49,USITCPub.1536at34
(June1984).

11


Thenoticeofinstitutiondescribedtheimportedarticlesunderinvestigationasfollows:
CSPVcells,whetherornotpartiallyorfullyassembledintootherproducts,
including,butnotlimitedtomodules,laminates,panels,andbuildingintegrated
materials.Theinvestigationcoverscrystallinesiliconphotovoltaiccellsofa
thicknessequaltoorgreaterthan20micrometers,havingap/njunction(or
variantthereof)formedbyanymeans,whetherornotthecellhasundergone
otherprocessing,including,butnotlimitedtocleaning,etching,coating,and/or
additionofmaterials(including,butnotlimitedto,metallizationandconductor
patterns)tocollectandforwardtheelectricitythatisgeneratedbythecell.

Includedinthescopeoftheinvestigationarephotovoltaiccellsthat
containcrystallinesiliconinadditiontootherphotovoltaicmaterials.This
incudes,butisnotlimitedtopassivatedemitterrearcontact(PERC)cells,
heterojunctionwithintrinsicthinlayer(HIT)cells,andothersocalledhybrid
cells.

Articlesunderconsiderationalsomaybedescribedatthetimeof
importationascomponentsforfinalfinishedproductsthatareassembledafter
afterimportation,including,butnotlimitedto,modules,laminates,panels,and
panels,andbuildingintegratedmaterials.39

39
CSPVcells,whetherornotpartiallyorfullyassembledintootherproducts,areexcludedfrom
thescopeoftheinvestigationiftheCSPVcellsweremanufacturedintheUnitedStates.Alsoexcluded
fromtheinvestigationarethinfilmphotovoltaicproductsproducedfromamorphoussilicon(aSi),
cadmiumtelluride(CdTe),orcopperindiumgalliumselenide(CIGS).Alsoexcludedfromthescope
oftheinvestigationarecrystallinesiliconphotovoltaiccells,notexceeding10,000mm2insurfacearea,
thatarepermanentlyintegratedintoaconsumergoodwhosefunctionisotherthanpowergeneration
andthatconsumestheelectricitygeneratedbytheintegratedcrystallinesiliconphotovoltaiccell.
Wheremorethanonecellispermanentlyintegratedintoaconsumergood,thesurfaceareafor
purposesofthisexclusionshallbethetotalcombinedsurfaceareaofallcellsthatareintegratedinto
theconsumergood.82Fed.Reg.25332(June1,2017).TheCommissionnotedthatforCustoms
purposes,theCSPVcellscoveredbytheinvestigationareprovidedforunderHarmonizedTariffSchedule
oftheUnitedStates(HTSUS)subheading8541.40.60.Withinthat8digitsubheading,CSPVcellsthat
areassembledintomodulesorpanelsareimportedunderHTSUSstatisticalreportingnumber
8541.40.6020,whileCSPVcellsthatarenotassembledintomodulesandarepresentedseparatelyare
importedunderstatisticalreportingnumber8541.40.6030.InvertersorbatterieswithCSPVcells
attachedareprovidedforunderHTSUSsubheadings8501.61.00and8507.20.80,respectively.In
addition,CSPVcellscoveredbytheinvestigationmayalsobeclassifiableasDCgeneratorsofsubheading
8501.31.80,whensuchgeneratorsareimportedwithCSPVcellsattached.WhileHTSUSprovisionsare
providedforconvenience,thewrittenscopeisdispositive.Id.

12


TheinvestigationsscopecoversthenoncellportionofafinishedCSPVmodule(suchasthe
aluminumframe),assumingthattheCSPVcellsarecovered.40
WefindthatdomesticallymanufacturedCSPVcells,whetherornotpartiallyorfully
assembledintootherproducts,arelikeimportedCSPVcells,whetherornotpartiallyorfully
assembledintootherproducts.Specifically,domesticallyproducedCSPVcellsarelikethe
importedCSPVcellsanddomesticallyproducedCSPVmodulesarelikeimportedCSPV
moduleswithinthescopeoftheinvestigation.
DuringthePOI,bothU.S.producersandimporterssuppliedawidevarietyof
overlappingCSPVproductstotheU.S.market,includingmonoandmulticrystallineproducts,
passivatedemitterrearcontact(PERC)products,heterojunctionwithintrinsicthinlayer
(HIT)products,andhybridproducts.41TheseimportedanddomesticCSPVproductswere
availableinsimilarforms,includingcells,laminates,andmodules(alsocalledpanels),withmost
intheformofmodules.42ImportedandU.S.manufacturedCSPVproductsweresoldinarange
ofwattagesandconversionefficiencies,andmodulesweresoldin60celland72cellforms.43
ImportedandU.S.manufacturedCSPVproductsalsoweresoldinsimilarchannelsof
distributiontooverlappingsegmentsofthemarket,primarilyforuseaspartofsolarpower
systemsthatconvertsunlightintoelectricity.44TheforeignandU.S.producersutilizedsimilar
manufacturingfacilitiesandprocessestomanufactureCSPVproducts.45Additionally,most
U.S.producers,importers,andpurchasersreportedthatU.S.producedCSPVproductswere
interchangeablewithimportedCSPVproducts.46Forallofthesereasons,wefindthat
domesticallyproducedCSPVproductsareliketheimportedCSPVproducts.
WefurtherfindasingledomesticproductconsistingofallformsofCSPVcells,whether
ornotpartiallyorfullyassembledintootherproducts.Thevastmajorityofimportsand
domesticproductioninvolvedCSPVcellsorCSPVmodules.47AlthoughCSPVmodulesarenot
likeCSPVcells,thefactsinthisinvestigationindicatethattheyaredirectlycompetitive

40
Accordingtopetitioners,sincethescopedoesnotcontainanexplicitexclusionforthenon
cellportionsofthemodule(suchasaluminumframes),theyarecoveredbythescope.Petitioners
explainthattheoverwhelmingmajorityofCSPVcellsareimportedaspermanentlyintegratedpartsof
CSPVmodules,whichcannotberemovedfromthemodules;theyarguethatthenoncellportionsofthe
moduleareintegralpartsofthemodulewithoutwhichitwouldnotfunction.Moreover,theyargue,
separatingthevalueofthecomponentsfromthatofthecellsforremedyassessmentpurposeswould
beextremelydifficultandwouldgiverisetoseriousenforcementissues.SolarWorldsPosthearing
InjuryBriefatExhibit1,sectionXVat8990;SunivasPosthearingInjuryBriefatExhibit9atQuestion10.
Respondentsagree.See,e.g.,SunPowersPosthearingInjuryBriefat3atn.2;SEIAsPosthearingInjury
BriefatAppendixAat1415.
41
CR/PRatTableII5(importedtechnologies),TableIII6(U.S.manufacturedtechnologies).
42
CR/PRatTableII4(importedforms),TableIII11(U.S.manufacturedforms).
43
CR/PRatTableV11;CRatI19toI21;PRatI14.
44
CR/PRatTableI1;CRatI15;PRatI11.
45
CRatI24toI32;PRatI18toI24.
46
CR/PRatTableV8.
47
CR/PRatTableII4(importedforms),TableIII11(U.S.manufacturedforms).

13


withinthemeaningofthesafeguardstatuteandthattherearenoclearlinesdifferentiating
them.48Asindicatedabove,theimportedarticlesareprovidedforinsubheading8541.40.60
(statisticalreportingnumbers8541.40.6020(solarcellsassembledintomodulesormadeup
intopanels)and8541.40.6030(solarcells,other))oftheHTSUS.49SinceCSPVcellsarethe
basicelementofaCSPVmodule,bothcellsandmodulessharethesameprimaryphysical

48
Intheantidumpingandcountervailingdutyinvestigationsconductedpreviously,the
Commissiondefinedasingledomesticlikeproductcorrespondingtothescopethatincluded
CSPVcellsandCSPVmodules.CrystallineSiliconPhotovoltaicCellsandModulesfromChina,Inv.Nos.
701TA481and731TA1190(Final),USITCPub.4360at412(Nov.2012)(CSPVI);CrystallineSilicon
PhotovoltaicProductsfromChinaandTaiwan,Inv.Nos.701TA511and731TA1246to1247(Final),
USITCPub.4519at815(Feb.2015)(CSPVII).TheCommissionsdomesticlikeproduct
determinationsinthoseantidumpingandcountervailingdutyinvestigationsarenotdispositiveor
bindingonthedeterminationofthelikeordirectlycompetitiveproductinthissafeguardinvestigation
forseveralreasons.See,e.g.,Steel,Inv.201TA75,USITCPub.3479at2732(Dec.2001);Fresh
TomatoesandBellPeppers,Inv.No.201TA66,USITCPub.2985atI7(Aug.1996).Forexample,the
twostatutoryschemeshavedifferentpurposes,withantidumpingandcountervailingduty
investigationsnarrowlyaimedatremedyingunfairlytradedimportsandglobalsafeguardinvestigations
preventingorremedyingseriousinjurytodomesticproductiveresourcesfromallimports.Steel,Inv.
No.201TA075,USITCPub.3479at30(quotingStainlessSteelandAlloyToolSteel,201TA048,USITC
Pub.1377at16n.21(May1983)).Globalsafeguardinvestigationsareconcernedwithseriousinjuryto
theproductiveresources(e.g.,employees,physicalfacilities,andcapital)employedinthedivisionsor
plantsinwhichthearticleinquestionisproduced.H.R.Rep.9371at46(1973);seealsoH.R.Rep.
100576at66162(1988);S.Rep.10071at4647(1987);H.R.Rep.10040at8696(1987).The
statutoryschemesdefinedomesticindustrydifferently.Compare19U.S.C.2252(c)(6)(A)(1)
(domesticproducersasawholeofthelikeordirectlycompetitivearticle)with19U.S.C.
1677(4)(A),1677(10)(producersasawholeofadomesticlikeproduct,whichisdefinedasaproduct
whichislike,orintheabsenceoflike,mostsimilarincharacteristicsanduseswiththeimportssubject
toinvestigation).Additionally,thescopesoftherespectiveantidumpingandcountervailingdutyand
safeguardinvestigationsmaybebroaderornarrower,and/orthefactualrecordsdifferduetotheglobal
versuscountryspecificnatureoftheinvestigations,thetimeperiodsinvolved,andtheparticularissues
thatpartieschoosetodisputeinagivenproceeding.Furthermore,theCommissionconsidersdifferent
factorstoanalyzedomesticlikeproductquestionsinantidumpingandcountervailingdutyinvestigations
thanthefactorsdiscussedaboveforglobalsafeguardinvestigations.See,e.g.,NipponSteelCorp.v.
UnitedStates,19CIT450,455n.4(Apr.3,1995)(physicalcharacteristicsanduses;interchangeability;
channelsofdistribution;customerandproducerperceptions;commonmanufacturingfacilities,
processes,andemployees;andwhereappropriateprice);CSPVII,USITCPub.4519at1315(whether
theupstreamproductisdedicatedforuseinthedownstreamproduct;whethertheyaresoldin
separatemarkets;differencesinphysicalcharacteristicsandfunctions;differencesinvalue;extentof
processesusedtotransformupstreamintodownstreamarticles).
49
Thearticlesalsomaybeimportedaspartsorsubassembliesofgoodsprovidedforin
subheadings8501.31.80,8501.61.00and8507.20.80.InvertersorbatterieswithCSPVcellsattachedare
providedforunderHTSUSsubheadings8501.61.00and8507.20.80,respectively.Inaddition,CSPVcells
coveredbytheinvestigationmayalsobeclassifiableasDCgeneratorsofsubheading8501.31.80,when
suchgeneratorsareimportedwithCSPVcellsattached.CRatI52;PRatI38.

14


properties.50ThecharacteristicsofCSPVcellsthatenablethemtoconvertsunlightinto
electricityarenotaffectedbythemoduleassemblyprocessbutareanessentialfunctionofthe
moduleinCSPVsolarsystems;likewise,CSPVmodulescannotservetheirintendedfunctionof
convertingsunlightintoelectricitywithouttheinclusionofCSPVcells.51Theprocessesusedto
manufactureCSPVmodulesfromCSPVcellsaretechnologicallysophisticated,morelabor
intensivethanmanufacturingCSPVcells,52andaddvaluetotheproduct,buttheyenhance
ratherthanchangethebasicfunctionoftheCSPVcells,whichistoconvertsunlightinto
electricity.53AlthoughanumberoffirmsareindependentmoduleassemblerswithnoU.S.cell

50
CSPVcellsusemonoormulticrystallinesiliconcellstoconvertsunlightintoelectricity.CR
atI15;PRatI11.Thesecellsarestrungtogether,sealed,laminated,andusuallyframedtomakeCSPV
modules(alsoknownassolarpanels).CRatI15toI18;PRatI11toI13.
51
CRatI15toI21;PRatI11toI16.
52
Therearesomedifferencesinhowthetwomaintypesofcells(monocrystallineand
multicrystallinesilicon)aremanufactured,althoughbotharemanufacturedfromsiliconthatisrefined
typicallyusingtheSiemensmethodorfluidizedbedreactortechnologyandthenmanufacturedintoa
wafer.CRatI19,I25toI26;PRatI14,I19.Toproduceamonocrystallinewafer,manufacturersmelt
polysiliconrocksandasmallamountofboronina2,500degreeCzochralskifurnace,lowerarotating
seedcrystalintothefurnace,andslowlyraisethecrystaloutofthemeltwhilegrowingasinglelong
crystal.Aftercoolingthecrystal,manufacturerscutoffitstopandtail,cutthecrystalintoequallength
ingots,squaretheingot(leavingroundedcorners),andslicetheingotsintowafers(typicallyusinga
diamondwiresaw).CRatI26toI27;PRatI19toI21.Toproducemulticrystallinewafers,
manufacturersloadpolysiliconintoacrucible,loadthecrucibleintoadirectionalsolidificationsystems
furnace,andcastthepolysiliconintoingots.Theycuttheingotsintoblocksandslicethemintosquare
wafersusingawiresaw.CRatI28;PRatI21.ManufacturersmanufactureCSPVcellsusingacapital
intensivemanufacturingprocessthatrequiresaskilledworkforceandgenerallyinvolvesatleastseven
majorsteps:cleaningandtexturingthewaferstoreducesunlightreflectionandincreaselight
absorption;diffusingphosphorusintoathinlayerofthewaferssurfaceatahighheattogivethewafer
anegativepotentialelectricalorientation;isolatingathinlayerofsiliconfromtheedgeofthecellto
separatethepositiveandnegativelayers;coatingthecellswithasiliconnitrideantireflectivecoatingto
increasesunlightabsorption;usingsilverpastetoprintthinmetalfingersinstripsontothecellthatwill
connecttotherestofthemoduleviabusbarsor/andprintingathinlayer(typicallyaluminum)onthe
othersideofthecell;cofiringthecellsinahightemperaturefurnacetoimbedthesilverpasteinthe
surfaceofthesiliconlayerandformareliableelectricalcontact;andtestingandsortingthecells
accordingtotheircharacteristicsandefficiency.CRatI28toI30;PRatI21toI23.
53
ToassembleCSPVcellsintomodules,manufacturersuseautomatedandsophisticatedyet
relativelymorelaborintensiveprocessesinwhichtheyassembleintoalaminatesolderedstringsof
CSPVcellsonarectangularmatrixsealedwithethylvinylacetateandabacksheet(commonlyaplastic
filmcompositeorglassforsomeapplicationssuchasbifacialmodules)andthenattachaframeand
junctionbox.TheessentialcharacteristicofCSPVcellstoconvertsunlightintoelectricityisenhanced
whenmultipleCSPVcellsarestrungtogether,laminated,framed,andconnectedtoaninverterasCSPV
modules.ACSPVmodulegeneratesmorepowerthananindividualCSPVcellusedtomakethemodule,
thejunctionboxpermitsmodulestobeconnectedtoaninverterthatconvertsthesystemsdirect
currentintoalternatingcurrentforadditionaltransmission,andlaminationpermitstheCSPVcellsto
withstandtheelementsinordertoconvertsunlightintoelectricityoveralongerusefullife.The
(Continued)

15


manufacturingoperations,54mostproductionofCSPVcellsandCSPVmodulesduringthePOI
wasperformedintheUnitedStatesbyintegratedproducersthatmanufactureandinternally
consumeCSPVcellsfortheirCSPVmoduleoperations.55CSPVcellsarededicatedforuseinthe
productionofCSPVmodules.56OnlyafractionofU.S.manufacturedCSPVcellsaresoldinthe
commercialmarket,andeventhen,CSPVcellsareusedtomanufactureCSPVmodules.57Both
CSPVcellsandCSPVmodulesareintegratedintophotovoltaicsolarsystemsthatconvert
sunlightintoelectricityforuseinresidential,commercial,andutilityapplications.58Finally,
CSPVcellsrepresentasubstantialportionofthetotalcostoffinishedCSPVmodules,59and
pricesofcellsgenerallycorrelatedwithmodulepricesduringthePOI.60Forthesereasons,we
defineasingledomesticproductcorrespondingtotheimportedproductswithinthescopeof
theinvestigationthatincludesCSPVcellsandCSPVmodules.61

B. DomesticIndustry

Thetermdomesticindustryisdefinedinsection202(c)(6)(A)(i)oftheTradeActto
mean

withrespecttoanarticle,thedomesticproducersaswholeofthelikeordirectly
competitivearticleorthoseproducerswhosecollectiveproductionofthelikeor

(Continued)
assemblyprocessdoesnotchangetheessentialcharacteristicsoftheCSPVcells.CRatI16toI18,I31
toI32;PRatI13,I24.
54
The***domesticCSPVcellproducersduringthePOIwereSolarWorldandSuniva,which
togetheraccountedforthevastmajority(***percent)ofU.S.CSPVcellproductionbykWin2016.***
werethelargestU.S.assemblersofCSPVmodules,accountingfor***percent(***),***percent(***),
and***percent(***)ofU.S.moduleassemblyduringthePOI.CRatIII22,III23;PRatIII11;CR/PRat
TableIII5,TableIII7,TableIII8.
55
CRatI37toI38,III27,III31;PRatI28,III15,III17;CR/PRatTableI1,TableII4,TableIII9,
TableIII11.
56
CSPVcellsaresometimesusedtomakenonstandardsizemodulesfortheverysmall
buildingintegratedphotovoltaicmarket.Buildingintegratedphotovoltaicproducts,suchassolar
shinglesorsolarwindows,incorporatesolarcells(oftenthinfilmandsometimesCSPVcells);theyare
integratedintothebuildingenvelope,suchasthefaadeorroof,takingoverthefunctionofroof
shinglesorglasswhilealsoproducingelectricity.CRatI21;PRatI16;CR/PRatTableII4(imported
forms),TableIII11(U.S.manufacturedforms)(questionnairerespondentsreported***U.S.imports
and***domesticproductionofbuildingintegratedproducts).
57
CRatI37toI38,III27,III31;PRatI28,III15,III17;CR/PRatTableI1,TableII4,TableIII9,
TableIII11.
58
CRatI15,I17,I22toI23,I33toI37;PRatI11,I12,I17,I28.
59
CRatIII50;PRatIII26;CR/PRatTableIII22.
60
CR/PRatFigureV13.
61
Thisisthedefinitionadvocatedbypetitioners.Moreover,intheircommentsonthedraft
questionnairesforthisinvestigation,nopartyaskedtheCommissiontocollectdataconcerningany
possiblealternativedefinition.CRatI14toI15&n.48;PRatI10&n.48.

16


directlycompetitivearticleconstitutesamajorproportionofthetotaldomestic
productionofsucharticle.62

ThisdefinitionwasaddedbytheUruguayRoundAgreementsAct(URAA)andcodified
existingCommissionpractice.63
TheCommissionhasbroaddiscretiontodeterminewhatconstitutesthedomestic
industryproducingalikeordirectlycompetitivearticleinglobalsafeguardinvestigations,
generallyadheringtotheprincipalthat{t}heindustryshouldbedefinedinamannerwhich
allowsforameaningfulanalysisofthestatutorycriteriainlightofthelegislativehistoryof
section201.64Theconceptofindustryemployedinsection201oftheTradeActisnotthe
sameasthatusedintheantidumpingandcountervailingdutyprovisionsofTitleVII.65Asthe
Commissionhasstated,

TitleVIIisnarrowlyaimedatremedyingthespecificadvantagesimportsmaybe
receivingfromunfairtradepractices.Thepurposeofsection201eitheristo
preventorremedyseriousinjurytodomesticproductiveresourcesfromall
imports.Inlightofthepurposeofsection201andincontrasttoTitleVII,the
sharingofproductiveprocessesandfacilitiesisafundamentalconcernin
definingthescopeofthedomesticindustryundersection201.66

ThelegislativehistorytotheTradeActindicatesthattheconcerninasafeguard
investigationisthequestionofseriousinjurytotheproductiveresources(e.g.,employees,
physicalfacilities,andcapital)employedinthedivisionsorplantsinwhichthearticlein
questionisproduced.67
Consistentwithourdefinitionofthelikeordirectlycompetitivedomesticproduct,we
definethedomesticindustryasallU.S.producersofCSPVcells,whetherornotpartiallyorfully

62
19U.S.C.2252(c)(6)(A)(i).
63
UruguayRoundAgreementsActStatementofAdministrativeAction(URAASAA),H.Doc.
103316,vol.I(103rdCong.2ndSess.)at961.
64
Steel,Inv.No.201TA075,USITCPub.3479at30(quotingStainlessSteelandAlloyToolSteel,
201TA048,USITCPub.1377at12(May1983)).
65
Thestatutorydefinitionsofdomesticindustryaredifferent.Compare19U.S.C.
2252(c)(6)(A)(1)(definingthetermforpurposesofglobalsafeguardinvestigationsasdomestic
producersasawholeofthelikeordirectlycompetitivearticle)with19U.S.C.1677(4)(A),1677(10)
(definingdomesticindustryinantidumpingandcountervailingdutyinvestigationsastheproducers
asawholeofadomesticlikeproduct,andinturnisdefiningdomesticlikeproductasaproduct
whichislike,orintheabsenceoflike,mostsimilarincharacteristicsanduseswiththeimportssubject
toinvestigation).
66
Steel,Inv.No.201TA075,USITCPub.3479at30(quotingStainlessSteelandAlloyToolSteel,
201TA048,USITCPub.1377at16n.21(May1983)).
67
H.R.Rep.9371at46(1973);seealsoH.R.Rep.100576at66162(1988);S.Rep.10071at
4647(1987);H.R.Rep.10040at8696(1987).

17


assembledintootherproducts.***oftherespondingfirmswereintegratedU.S.producersof
CSPVcellsandCSPVmodulesduringthePOI,andanumberoffirmswereindependentmodule
producerswithoutintegratedcellproducingoperations.68Manyofthesefirms,bothintegrated
producersandindependentmoduleproducers,importedCSPVcellsorlaminatesthattheythen
consumedintheirmoduleassemblyoperations,andsomealsoimportedfinished
CSPVmodules.69
Petitionersadvocateincludingindependentmoduleproducersinthedomesticindustry,
evenwhenthosefirmsrelyentirelyonimportedCSPVcellsfortheirU.S.moduleoperations,
andrespondentsdonotdisagree.70Hadwedeterminednottoincludeinthedomesticindustry
independentmoduleproducersthatreliedononlyimportedandnotU.S.manufacturedCSPV
cells,theremainingproducerswouldstillaccountforamajorproportionoftotaldomestic
productionofCSPVproducts.71Nevertheless,exclusionofsuchindependentmoduleproducers
wouldarguablyruncountertothelegislativeintentofconsideringseriousinjurytothe
productiveresourcesinwhichthearticleisproducedintheUnitedStates.72Suchanapproach
alsowouldignorethefactthat***ofthe***respondingintegratedU.S.producersreliedona
mixtureofimportedandU.S.manufacturedcellsfortheirownmoduleoperations,73andthere
wasinadequateU.S.CSPVcellcapacityorproductiontomeetU.S.CSPVmodulecapacityor
productionduringthePOI.74Consequently,forouranalysisinthisinvestigation,wedefinethe
domesticindustryasallU.S.producersofCSPVcells(whetherornotpartiallyorfullyassembled
intootherproducts),includingintegratedproducersofCSPVcellsandmodulesand
independentmoduleproducers.75

68
CRatIII22,III23;PRatIII11;CR/PRatTableIII5,TableIII7,TableIII8.Asindicatedearlier,
mostoftheCSPVproductsmanufacturedintheUnitedStatesconsistedofCSPVcellsorCSPVmodules.
Modulesaccountedfor***to***percentofU.S.producersU.S.shipmentsduringthePOI,compared
to***to***percentforcells,***to***percentforlaminates(mostlyin2012),and***and***
percentforintegratedbuildingmaterialsandoffgridportableconsumergoods,respectively.
CR/PRatTableIII11.
69
CR/PRatTableII7,TableIII8;CRatII20;PRatII17.AmoduleisajoinedgroupofCSPV
cells,regardlessofthenumberofcellsortheshapeofthejoinedgroup,thatarecapableofgenerating
electricity.Thetermmoduleisfrequentlyusedinterchangeablywiththetermpanelandforthe
remainderofouranalysisalsoincludesaCSPVcellthathasundergoneanyprocessing,assembly,or
interconnection(including,butnotlimitedto,assemblyintoalaminate).
70
InjuryHearingTr.at315(Nicely)(itdoesntmatteronewayortheother).
71
CompareCR/PRatTableII7withCR/PRatTableIII4andTableIII7.
72
H.R.Rep.9371at46(1973);seealsoH.R.Rep.100576at66162(1988);S.Rep.10071at
4647(1987);H.R.Rep.10040at8696(1987).
73
CR/PRatTableII7(importsbydomesticproducers),TableIII8(domesticproducersmodule
assemblybysourceofCSPVcell).
74
CompareCR/PRatTableIII4(domesticindustrysproduction,capacity,andcapacity
utilizationforCSPVcells)withCR/PRatTableC1(b)(apparentU.S.consumptionofCSPVproducts
duringthePOI).
75
Asaresult,werelyprimarilyondatainCR/PRatTableC1(b)thatincludetheproductive
resourcesofallU.S.producersforpurposesofcapacity,capacityutilization,production,and
(Continued)

18


III. IncreasedImports
Afterdefiningthedomesticindustrythatmanufacturesaproductthatislikeordirectly
competitivewiththeimportedarticle,theCommissionnextexamineswhetherimportsare
enteringinincreasedquantities.Undersection202oftheTradeAct,importshaveincreased
whentheincreaseiseitheractualorrelativetodomesticproduction.76Consistentwithits
usualpastpractice,77theCommissioninthissafeguardinvestigationconsideredimporttrends
overthemostrecentfiveyearperiodastheframeworkforitsanalysis,butitmayconsider
longerorshorterperiodsandmayfocusonthemostrecentperiod,asitdeemsappropriate.78
Asathresholdmatter,thisinvestigationincludesseveralpossibledatasourcesfor
measuringimportsandanyincreaseinimports,including(1)officialimportstatisticsfromthe
CommissionsDataWeb;79(2)questionnaireresponsesfromimportersthatreportedU.S.
importsonthebasisofthemanufacturinglocationoftheCSPVcell;and(3)alternate
questionnairedataonU.S.importsfromCanadaandMexicothatarebasedonthemodule

(Continued)
employmentindicatorsandCR/PRatTableIII2andTableIII3forrelatedclosures/openings.The
domesticindustrysU.S.shipments,byquantity,anditsU.S.shipmentsasashareofapparentU.S.
consumptioninclude(1)modulesthatcontainU.S.manufacturedCSPVcells,(2)U.S.manufactured
CSPVcellsthatarenototherwisereportedbymoduleassemblers,and(3)reimportsofU.S.originCSPV
cells;thisquantitymeasureexcludesanyCSPVmodulesmanufacturedintheUnitedStatesfrom
importedCSPVcells,asthosearereportedforpurposesofapparentU.S.consumptionasimports.The
domesticindustrysU.S.shipments,byvalue,anditsU.S.shipmentsasashareofapparentU.S.
consumption,byvalue,includetheincrementalvalueaddedintheUnitedStatestoassembleimported
CSPVcellsintomodules.CRatIII33;PRatIII17.TheCommissiondidnotaskquestionnaire
respondentstoallocatefinancialdataontheirmoduleoperationsbasedontheshareofproduction
assembledfromU.S.manufacturedcells,becauseabreakoutoffinancialinformationatthislevelof
detailisnotconsistentwiththemannerinwhichmostU.S.producerstracktheirfinancialresultsand
requestingthedataonthisbasiswouldyieldunreliableinformation.Moreover,theCommissions
questionnairesoughtsupplementalinformationonthefirmsreportedrawmaterialcoststhatwould
reflectwhethertheircellswereinternallyproducedorpurchasedfromrelatedorunrelatedfirms.This
allowedtheCommissiontoevaluatethefinancialdatausingaconsistentallocationmethodologyforall
U.S.producers.CRatIII50;PRatIII26.
76
19U.S.C.2252(b)(1)(A)(requiringtheCommissiontodeterminewhetheranarticleisbeing
importedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofserious
injury,orthethreatthereof);seealso19U.S.C.2252(c)(1)(C)(inturnrequiringwithrespectto
substantialcause,thattheCommissiontakeintoaccountanincreaseinimports(eitheractualorrelative
todomesticproduction)).
77
See,e.g.,Steel,Inv.No.201TA73,USITCPub.3479at3233(Dec.2001);ExtrudedRubber
Thread,Inv.No.201TA72,USITCPub.3375atI8(Dec.2000).
78
ThePOIintheinstantglobalsafeguardinvestigation(January2012toDecember2016)
overlapswithmostofthetimeperiodintheCSPVIIantidumpingandcountervailingdutyinvestigations
(January2011toJune2014)andsixmonthsofthetimeperiodintheCSPVIantidumpingand
countervailingdutyinvestigations(January2009toJune2012).
79
See,e.g.,CR/PRatTableC7.

19


assemblylocationandadjustedU.S.importerquestionnairedataonimportsfromallother
sourcesthatarebasedonthemanufacturinglocationoftheCSPVcell.Inthisinvestigation,we
reliedprimarilyonthethirdsource.
OfficialimportstatisticsinCR/PRatTableC7maybeoverstatedtotheextentthatthey
includeproductsthatareoutsidethescopeofthisinvestigation,suchasthinfilm,andtheymay
beoverorunderstatedtotheextentthattheydonotnecessarilydefinecountryoforigin
consistentlywiththeargumentspresentedinthiscase.80TableC7doesnotpresentofficial
importstatisticsbyquantityasthesedataarecollectedonalessreliablebasisofunits(a
termthatmayencompass,e.g.,asinglecellofagivenwattage,asinglecellofadifferent
wattage,a60cellmodule,anda72cellmodule).Forthisreason,theCommissions
questionnairesinsteadsoughtconsistentquantitydataintermsofkilowatts(kW).81
TheCommissionsimporterquestionnairesinthisinvestigationprimarilycollectedU.S.
importdatabasedonthelocationwheretheCSPVcellwasmanufactured,eveniftheCSPVcell
wasassembledintoaCSPVmoduleinadifferentcountry.82TheCommissionalsocollected
separatedataonU.S.importsofCSPVmodulesthatwereassembledinCanadaandMexico,
regardlessofwheretheCSPVcellsweremanufactured,consistentwithargumentspresented
bycertainrespondents.83Undertheirproposal,thecountryoforiginforU.S.importsofCSPV
modulesassembledinNAFTAcountrieswouldbethelocationwheretheCSPVmodulewas
assembled,regardlessofwheretheCSPVcellwasmanufactured,andinformationonallother
U.S.importswouldbesourcedfromimporterquestionnairedatabasedontheCSPVcell
manufacturinglocation,exceptthatanyCSPVcellsusedtoassembleU.S.importsofmodules
fromNAFTAcountrieswouldbesubtractedfromtheU.S.importdataforthecountrieswhere
theCSPVcellsweremanufacturedtoavoiddoublecounting.84

80
CRatII1atn.1;PRatII1atn.1.OfficialimportstatisticspresentedinCR/PRatTableC7on
importsunderHTSUSstatisticalreportingnumbers8541.40.6020(solarcellsassembledintomodules
ormadeupintopanels)and8541.40.6030(solarcells,other)alsomaybeunderstated,ifimports
enterunderadifferentprovisionaspartsorsubassembliesofgoodsprovidedforinsubheadings
8501.31.80,8501.61.00and8507.20.80.SeeCRatI52;PRatI38.
81
TheelectricitypoweroutputofCSPVcellsandmodulesismeasuredintermsofwattage.A
kWequals1,000watts,whereasonemegawatt(MW)equals1,000kW,andagigawatt(GW)equals
1,000MW.CRatI15,I21;PRatI11,I14.
82
See,e.g.,CR/PRatTableII1,TableIV1.
83
See,e.g.,GovernmentofCanadasPrehearingInjuryBriefat713;GovernmentofCanadas
PosthearingInjuryBriefat78;CanadianRespondentsPrehearingInjuryBriefat5,2735;Canadian
RespondentsPosthearingInjuryBriefat1215;SunpowersPosthearingInjuryBriefat38,Exhibits14;
SunPowersPrehearingInjuryBriefat1013,Exhibit3;GovernmentofMexicosPrehearingInjuryBrief
at45(urgingtheCommissiontoconsidertheargumentspresentedbyexportersfromMexico);Injury
HearingTr.at6667.Inaddition,theCommissioncollectedseparatedataonU.S.importsofCSPV
modulesthatwereassembledinChina,regardlessofwheretheCSPVcellsweremanufactured.CR/PR
atTableII3.
84
AsCanadianrespondentsexplain,aheadquartersrulingbyU.S.CustomsandBorder
Protectionconfirmsthat,underNAFTArulesoforiginandmarkingrules,U.S.importsoffinished
(Continued)

20


Althoughpetitionersdidnotovertlyadoptrespondentsapproachtocountryoforigin
forU.S.importsofmodulesassembledinNAFTAcountries,theydidnotidentifyanyflawsin
thelegalreasoningunderpinningCanadianrespondentsarguments.85WefindtheCanadian
respondentsargumentspersuasive,andaccordinglytheimportdataweprimarilyreliedonfor
ouranalysisusesthecountryoforiginmethodologythattheyproposed(i.e.,theNAFTArules
oforiginforimportsfromCanadaandMexicoandforimportsfromallothercountries,the
countrywherethecellwasmanufactured,asadjustedtoreflectcellsassembledintomodules
inaNAFTAcountry).86
Basedonthesedata,wefindthatthestatutorycriterionofincreasedimportsismet.
ImportsofCSPVproductsincreasedby492.4percentbetween2012and2016.87They
increasedeachyear,from2.1millionkWin2012to3.1millionkWin2013,4.6millionkWin
2014,8.4millionkWin2015,and12.8millionkWin2016.88Importsasaratiotodomestic
productionalsoincreasedoverallandineachyear,from733.9percentin2012to948.4percent
in2013,1,141.0percentin2014,1,593.5percentin2015,and2,276.2percentin2016.89

(Continued)
CSPVmodulesassembledinaNAFTAcountry,evenfromCSPVcellsoriginatinginnonNAFTAcountries,
qualifyasproductsfromtheNAFTAcountry,wherethegoodsoriginateunderGeneralNote12(b)and
areaccompaniedbyasignedandcompletedNAFTAcertificateoforigin,becausethefinalassembly
operationsintheNAFTAcountryinvolvemorethanminorprocessingandrequiresubstantial
investmentandvalueadded.See,e.g.,CanadianRespondentsPosthearingInjuryBriefat1215;
CanadianRespondentsPrehearingInjuryBrief5,2735(citingHQH266527(Apr.11,2016);HTSUS,
GeneralNote12(NAFTArulesoforigin);19C.F.R.102(NAFTAmarkingrules);and19C.F.R.102.19
(NAFTApreferenceoverriderule)),ExhibitG(HQH266527(Apr.11,2016)).Moreover,Canadian
respondentscontendthattheprovisionofNAFTAArticle201defininggoodsofaPartyasincluding
originatinggoodsofthatPartyappliestosafeguardmeasuresbecauseNAFTAArticle309.2createsan
exceptionforantidumpingdutyandcountervailingdutymeasures(relatedtoenforcementof
antidumpingandcountervailingdutyordersandundertakings),butnosuchexceptionexistsfor
safeguardmeasures.CanadianRespondentsPrehearingInjuryBriefat2735,ExhibitI;Governmentof
CanadasPrehearingInjuryBriefat12.
85
See,e.g.,SolarWorldsPrehearingInjuryBriefat5758(theCommissionproperlyincluded
alternativedata,basedonmoduleorigin);Petitionat19n.61(Apr.26,2017).
86
See,e.g.,CR/PRatTableII2,TableIV3,TableC1b(implementingthemethodologyand
reducingU.S.importsfromnonNAFTAsourcestoreflectreportedinformationindicatingthattheCSPV
cellswereassembledintomodulesinCanadaorMexico).Becausethismethodologychangesonlythe
countryoforiginofimports,thereislittledifferenceinthetotalvolumeofimportsfromallcountries
regardlessofthemethodologyused.CompareCR/PRTableC1aandTableC1b;CRatTableII2
atNote,TableIV3atNote;CRatIV6;PRatIV4.
87
CR/PRatTableII2,TableIV3,TableC1b.
88
CR/PRatTableII2,TableIV3,TableC1b.Thevalueofimportsalsoincreasedoverthis
periodandfromoneyeartothenext.Importsincreasedfrom$1.9billionin2012to$2.2billionin
2013,$3.0billionin2014,$5.0billionin2015,and$7.1billionin2016.CR/PRatTableII2,TableIV3,
TableC1b.
89
CR/PRatTableII2,TableIV3,TableC1b.

21


Consequently,wefindthatimportsincreasedbothactuallyandrelativetodomestic
production.

IV. SubstantialCauseofSeriousInjuryorThreatofSeriousInjury
A. LegalStandardsandStatutoryRequirements

Thesecondofthethreestatutorycriteriaconcernswhetherthedomesticindustryis
seriouslyinjuredorthreatenedwithseriousinjury.Section202(c)(6)(C)oftheTradeAct
definesthetermseriousinjuryasasignificantoverallimpairmentinthepositionofa
domesticindustry,andsection202(c)(6)(D)definesthetermthreatofseriousinjuryas
seriousinjurythatisclearlyimminent.90
Indeterminingwhetherseriousinjuryorthreatofseriousinjuryexists,theCommission
considersalleconomicfactorswhichitconsidersrelevant,including(butnotlimitedto)the
followingenumeratedfactors

(A)withrespecttoseriousinjury
(i)thesignificantidlingofproductivefacilitiesinthedomesticindustry,91
(ii)theinabilityofasignificantnumberoffirmstocarryoutdomesticproduction
operationsatareasonablelevelofprofit,and
(iii)significantunemploymentorunderemploymentwithinthedomesticindustry
;92
(B)withrespecttothreatofseriousinjury
(i)adeclineinsalesormarketshare,ahigherandgrowinginventory(whether
maintainedbydomesticproducers,importers,wholesalers,orretailers),anda
downwardtrendinproduction,profits,wages,productivity,oremployment(or
increasingunderemployment)inthedomesticindustry,
(ii)theextenttowhichfirmsinthedomesticindustryareunabletogenerate
adequatecapitaltofinancethemodernizationoftheirdomesticplantsand
equipment,orareunabletomaintainexistinglevelsofexpendituresforresearch
anddevelopment,and
(iii)theextenttowhichtheUnitedStatesmarketisthefocalpointforthe
diversionofexportsofthearticleconcernedbyreasonofrestraintsonexportsof
sucharticleto,oronimportsofsucharticleinto,thirdcountrymarkets.93

90
19U.S.C.2252(c)(6)(C),2252(c)(6)(D).
91
Thestatutefurtherprovidesthatthetermsignificantidlingofproductivefacilitiesincludes
theclosingofplantsortheunderutilizationofproductioncapacity.19U.S.C.2252(c)(3).
92
19U.S.C.2252(c)(1)(A).
93
19U.S.C.2252(c)(1)(B).

22


Thepresenceorabsenceofanyofthesefactorsisnotnecessarilydispositiveofwhether
increasedimportsareasubstantialcauseofseriousinjury,orthreatofseriousinjury,tothe
industry.94Aspartofitsanalysis,theCommissionmustconsidertheconditionofthedomestic
industryoverthecourseoftherelevantbusinesscycle.95
Thethirdstatutorycriterionalsorequiresafindingthatthearticleisbeingimportedin
suchincreasedquantitiesastobeasubstantialcauseofseriousinjuryorthreatofserious
injury.Section202(b)(1)(B)definessubstantialcauseasacausewhichisimportantandnot
lessthananyothercause.96Thus,theincreasedimportsmustbebothanimportantcauseof
theseriousinjuryorthreatandacausethatisequaltoorgreaterthananyothercause.
Indeterminingwhetherincreasedimportsareasubstantialcauseofseriousinjuryor
threatofseriousinjury,thestatutedirectstheCommissiontotakeintoaccountalleconomic
factorsthatitfindsrelevant,includingbutnotlimitedtoanincreaseinimports(either
actualorrelativetodomesticproduction)andadeclineintheproportionofthedomestic
marketsuppliedbydomesticproducers.97ThestatutedirectstheCommissiontoconsiderthe
conditionofthedomesticindustryoverthecourseoftherelevantbusinesscycle,butit
providesthattheCommissionmaynotaggregatethecausesofdecliningdemandassociated
witharecessionoreconomicdownturnintheUnitedStateseconomyintoasinglecauseof
seriousinjuryorthreatofinjury.98Thelegislativehistorystatesthattheprovisionismeantto
clarifythatimportreliefshouldbeavailableduringarecessionoreconomicdownturn.99
ThestatutealsodirectstheCommissiontoexaminefactorsotherthanimportsthat
maybeacauseofseriousinjuryorthreattothedomesticindustryandincludetheresultsofits
examinationinitsreport.100Thus,theCommissionisrequiredto(1)examinefactorsotherthan
increasedimportsand(2)makefindingswithrespecttotheseotherfactors.Thelegislative
historystatesthatthepurposeofthisprovisionistoassurethatallfactorsinjuringthe
domesticindustryareidentified.101

94
19U.S.C.2252(c)(3).
95
19U.S.C.2252(c)(2)(A).
96
19U.S.C.2252(b)(1)(B).
97
19U.S.C.2252(c)(1)(C).
98
19U.S.C.2252(c)(2)(A).
99
SenateFinanceCommittee,OmnibusTradeandCompetitivenessActof1987:ReportonS.
490,Rept.10071,100thCong.,1stSess.at50(1987).
100
19U.S.C.2252(c)(2)(B).
101
SenateFinanceCommittee,OmnibusTradeandCompetitivenessActof1987:ReportonS.
490,Rept.10071,100thCong.,1stSess.at50(1987).ThelegislativehistoryoftheTradeActincludes
examplesofothercausessuchaschangesintechnologyorconsumertastes,domesticcompetition
fromsubstituteproducts,plantobsolescence,orpoormanagement,which,iffoundtobemore
importantcausesofinjurythanincreasedimports,wouldrequireanegativedetermination.Senate
FinanceCommittee,TradeReformActof1974ReportonH.R.10710,S.Rept.1298,93rdCong.,2ndSess.
at121(1974).

23


B. ExistingAntidumpingandCountervailingDutyOrders

TheUnitedStatesimposedantidumpingandcountervailingdutyordersonimportsfrom
ChinainDecember2012andFebruary2015andanantidumpingdutyorderonimportsfrom
TaiwaninFebruary2015.102SeveralpastCommissionglobalsafeguardinvestigationshave
includedarticlescoveredbyoneormoreantidumpingorcountervailingdutyordersinthe
scopeoftheinvestigation,andtheinclusionofsucharticlesinthescopeofexistingorders,
alone,didnotdictateanyparticularoutcomefortheCommissionsseriousinjuryanalysis.103

C. ConditionsofCompetitionandtheBusinessCycle

ThefollowingconditionsofcompetitioninformouranalysisofwhetherCSPVproducts
arebeingimportedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantial
causeofseriousinjurytothedomesticindustryproducinganarticlelikeordirectlycompetitive
withtheimportedarticle.104

102
OnOctober19,2011,SolarWorldfiledantidumpingandcountervailingdutypetitions
regardingimportsofCSPVcellsandmodulesfromChina,andaftertheU.S.DepartmentofCommerce
andtheCommissioneachreachedaffirmativedeterminations,theUnitedStatesimposedorderson
thoseimportseffectiveDecember7,2012.CSPVI,USITCPub.4360;77Fed.Reg.73017(Dec.7,2012);
77Fed.Reg.73018(Dec.7,2012).OnDecember31,2013,SolarWorldfiledcountervailingand/or
antidumpingdutypetitionsregardingimportsofcertaincrystallinesiliconphotovoltaicproductsfrom
ChinaandTaiwan,andafterbothagenciesreachedaffirmativedeterminations,theUnitedStates
imposedordersonthoseimportseffectiveFebruary18,2015.CSPVII,USITCPub.4519;80Fed.Reg.
8597(Feb.18,2015);80Fed.Reg.8596(Feb.18,2015);80Fed.Reg.8592(Feb.18,2015).Theseorders
collectivelyincludeimportsofCSPVcellsandmodulesfromChina,regardlessofwhetherthecellor
moduleoriginatedinChina(orboth).Inaddition,theantidumpingdutyorderonTaiwancoversimports
ofcellsfromTaiwanaswellasimportsofmodulesfromTaiwanoranynonChinesecountrythatare
assembledfromcellsoriginatinginTaiwan.
103
Forexample,theCommissionsinvestigationinSteelincludedvarioustypesofcarbon
flatrolledsteelsubjecttoexistingorders.TheCommissiontooktheordersintoaccountinitsinjury
analysisandinfashioningitsremedyproposal,includingthefactthatsomeofthesemeasuresalready
providedsomedegreeofprotectiontothedomesticindustry.Steel,Inv.No.201TA73,USITCPub.
3479at364n.59(Dec.2001);CarbonandCertainSteelAlloyProducts,Inv.No.201TA51,USITCPub.
1553ata24(Jul.1984)(notingthatantidumpingandcountervailingdutyorderswerealreadyineffect
onseveraloftheproductssubjecttotheinvestigationandthatothercoveredproductswerethesubject
ofsuspensionagreements);seealsoNucorCorp.v.UnitedStates,318F.Supp.2d1207,1236(Ct.Intl
Trade2004),affd,414F.3d1331(Fed.Cir.2005)andWheatlandTubeCo.v.UnitedStates,495F.3d
1355,136367(Fed.Cir.2007)(recognizinginthecontextofantidumpingandcountervailingduty
investigationsthatsafeguardmeasuresmaybeimposedonimportsthataresubjecttoantidumpingor
countervailingdutyorders).
104
Wealsotaketheseconditionsofcompetitionintoconsiderationinouranalysisofimports
fromindividualcountriesinsectionVbelow.

24


1. DemandConditions

CSPVproductsareusedinsolarpowersystemsthatgenerateelectricityfromsunlight.105
CSPVproductsaccountforameaningfulshareofthecostoftheenduseproductsinwhichthey
areused.106DemandforCSPVproductsisderivedfromthedemandforsolarelectricity,which
isinfluencedbyfactorssuchascostcompetitivenesswithtraditionalenergysources,
environmentalconcerns,adesirefornationalenergyindependence,totalenergyconsumption,
andtheavailabilityofFederal,state,andlocalincentives.107

a. ConventionalandRenewableSourcesofEnergy

Electricityprovidersusingrenewableenergysources108seektoachievegridparity(the
pointatwhichthelevelizedcostofelectricity(LCOE)generatedfromrenewablesources

105
CRatI15;PRatI11.
106
CRatV12toV16;PRatV8toV10;CR/PRatTableV2;CR/PRatFiguresV4toV6.In
additiontothemodulecost,thepriceofaninstalledphotovoltaicsystemincludesnonmodulebalance
ofsystemcostssuchasinverters,mountinghardware,labor,siteassessmentanddesign,permitting,
financing,systeminstallation,overhead,andprofitmargin.CRatI33,V13;PRatI24toI25,V8.For
ongridinstallations,thecostshareofCSPVcellsgenerallyincreasesastheinstallationprojectssize
increases,withquestionnairerespondentsreportingthatCSPVcellsaccountedfor19to26percentof
thecostforresidentialsystems,18to27percentforcommercialinstallations,and29to31percentfor
utilitysystems.CRatV12toV13;PRatV8toV9;CR/PRatTableV2.AccordingtoSEIA,thecost
shareofaphotovoltaicmodule(includesthinfilm)rangedfrom15to19percentforresidentialsystems,
2632percentfornonresidentialsystems,and3649percentforutilitysystems.CRatV15atn.30;PR
atV9atn.30;CR/PRatFigureV6.Moreover,thesecostsharesarefarreducedfromearlierinthePOI,
whenthepriceofCSPVmoduleswashigher.
107
CRatV10;PRatV6.ThemajorityofU.S.producers(8of10),importers(30of48),and
purchasers(55of101)reportedthattheU.S.marketforCSPVproductswassubjecttobusinesscycles,
suchasseasonallyhigherdemandinwarmermonthsandatcalendaryearendtofinishprojectsto
qualifyforvariousincentiveprogramsfortaxaccountingpurposes.MostU.S.producers(6of10)and
nearlyhalfofrespondingimporters(23of48)andpurchasers(23of48)reporteddistinctconditionsof
competitionfortheU.S.CSPVmarket,withmostidentifyinggovernmentincentiveprogramsand
changesinglobalsupplyanddemandconditions.ThemajorityofU.S.producers(6of9),importers
(22of38),andpurchasers(56of89)reportedthattherehadbeenchangestothebusinesscycleand
conditionsintheU.S.marketsince2012,andtheyidentifiedincreasedcompetition,marketsaturation,
increasedefficiencyofCSPVcells,introductionandextensionofvarioussolarincentiveprograms(such
astheInvestmentTaxCredit),lowerinterestrates,anddecliningglobalpricesofCSPVcellsandsystems.
CRatV16toV17;PRatV11.
108
Renewablesourcesofsolarenergyincludephotovoltaicproducts(CSPVproductsandthin
film)aswellasnonphotovoltaicproducts(solarwaterheatandconcentratedsolarpower(CSP)).
ThinfilmusesaseveralmicronthicklayerofaphotosensitivesemiconductormaterialsuchasaSi,CdTe,
CIS,orCIGStoconvertsunlighttoelectricity.CRatI15atn.53;PRatI11atn.53.Solarwaterheatuses
sunlighttoheatwater,andCSPusesreflectedsunlighttogeneratesteamoravaporthatturnsaturbine
togenerateelectricity.CRatI17atn.57;PRatI12n.57.Otherrenewableenergysourcesinclude
(Continued)

25


equalsthecostfromthegridofelectricitygeneratedbyconventionalsources).109TheLCOE
variesbyregion,timeoftheday,andavailabilityofotherelectricitysources,110andeventhe
LCOEforagivenenergysourcecanvarywidely.111Duringperiodsofnonpeakelectricity
demandintheUnitedStates,onlylowestcostbaseloadgenerators(traditionallycoaland
nuclearplants)wouldbeabletosellelectricitytothegrid,whereasduringperiodsofpeak
electricitydemand,evengeneratorswithsomewhathighercostsmaybeabletosellelectricity
intothetransmissionordistributiongrid.112Forpeakperiods,naturalgasgeneratedelectricity
generallysetstheLCOEthatCSPVandotherrenewableenergysystemsseektomeet,especially
forutilitysales.113

b. ApparentU.S.consumptiontrends

ThevastmajorityoffirmsreportedthatU.S.demandforCSPVproductshasincreased
since2012.114Accordingtomostofthesefirms,theincreaseddemandresultedfroma
reductioninCSPVsystempricesandinstallationcostsaswellastheexistenceofFederal,state,
andlocalincentiveprograms.115Theyalsotiedtheincreaseddemandtothepublicsincreased
knowledgeofandgeneralinterestinrenewableenergy,increasedtechnologyimprovements,
includingmoduleefficiency,andincreasedmilitaryuseofsolarenergy.116Theincreasein
demanddescribedbyrespondingfirmsisreflectedinthedata,whichshowthatapparentU.S.

(Continued)
wind,geothermal,andbiomass.CR/PRatFigureV2.Conventionalsourcesofelectricityincludenatural
gas,coal,andoilaswellasnuclearandhydroelectric.CR/PRatFigureV2.
109
TheLCOErepresentstheperkWhourcostofbuildingandoperatingageneratingplantover
anassumedfinanciallife.KeyinputstocalculatetheLCOEincludecapitalcosts(allhardware,suchas
CSPVproducts),fuelcosts,fixedandvariableoperationsandmaintenancecosts,financingcosts,andan
assumedutilizationrateforeachplanttype.TheavailabilityofFederal,state,andlocalincentivescan
alsoimpactthecalculationoftheLCOEforvariousenergysources.Plantownersorinvestorsthat
financeplantsmayalsovalueportfoliodiversificationduetotheuncertaintyoffuturefuelpricesand
futurepolicies.CRatV58toV59&n.74;PRatV37toV38&n.74.
110
CRatV59;PRatV37toV38.
111
CRatV59toV61;PRatV38toV40;seealsoCRatV13toV14;PRatV8toV9
(indicatingthatinstalledphotovoltaicsystempricesvarygreatlyfromstatetostateandprojectto
project,withaconsiderablespreadamongthepricesineachmarketsegment);NationalRenewable
EnergyLab(NREL),U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017atAppendixB,EDISDoc.
623277,fileID1226486at654,72426;EDISDoc.622844.
112
CRatV10toV11,V59;PRatV6,V38;CR/PRatFigureV2,FigureV14;CSPVI,USITC
Pub.4360at2122;CSPVII,USITCPub.4519at32.
113
CRatV59;PRatV37toV38;CR/PRatFigureV14(indicatingthatin2016,combinedcycle
naturalgashadthelowestLCOEin2016,followedbyonshorewindandcoal).TheLCOEofcoal
generatedelectricityhasbeenincreasing.CRatV59atn.78;PRatV38atn.78.
114
CR/PRatTableV3.
115
CRatV17;PRatV11.
116
CRatV17;PRatV11.

26


consumptiongrewsubstantiallyduringthePOI,increasingby***percentbetween2012and
2016andbyatleast***percentineachoftheinterveningyears.117

c. MarketSegments

ThevastmajorityofCSPVmodulessoldintheU.S.marketareconnectedtothe
electricitygrid,118althoughsomeCSPVproductsaresoldforoffgridapplications.119Thereare
threegridconnectedmarketsegmentsresidential,nonresidential/commercial,andutility
althoughthesegmentsoverlapsomewhat.120Installationsizesvarybysegment,butthesizeof
installationsgenerallyhasgrownovertimeineachsegmentduetoacombinationofgreater
cellefficiency(morekW/cell)and/orlargerinstallations(moremodules/installation).121
AnnualU.S.installationsofongridphotovoltaicsystemsincreasedfrom3,373MWin
2012to14,762MWin2016,anincreaseof338percent.122Allthreeongridsegments
experiencedconsiderablegrowthinboththenumberofinstallationsandthetotalwattageof
installationprojectsduringthePOI.123ByDecember2016,morethan19,770MWofutility

117
Accordingtoquestionnairedata,apparentU.S.consumptionincreasedfrom***kWin2012
to***kWin2013,***kWin2014,***kWin2015,and***kWin2016.Byvalue,apparentU.S.
consumptionincreasedfrom$***in2012to$***in2013,$***in2014,$***in2015,and$***in
2016.CR/PRatTableIV3.IndustryreportsindicatethatU.S.installationsofongridphotovoltaic
systems(includingthinfilm)increasedfrom3,373MWin2012to14,762MWin2016,orby338
percent.CRatV1;PRatV1.
118
CRatV1;PRatV1;InjuryHearingTr.at18586(Card,Messer).
119
CSPVmodulesthataretypicallyusedinongridapplicationsmaybeusedinoffgrid
applications,butsomeoffgridapplicationsmayrequiredifferentmoduleswithspecificpower,
portability,orpoweroutputs;offgridsystemsoftenincludeadditionalbalanceofsystemcomponents
suchasabatteryandchargecontroller,althoughtheydonotnecessarilyrequireaninverter.Offgrid
applicationsincludearangeofuses,fromhomesnotconnectedtothegridtopowergenerationin
remotelocations,mobilepowersolutions,telecommunicationspowerandlightingsystems,and
portableconsumergoods(suchassystemstorechargeconsumerelectronicsliketabletsandphones).
CRatI22toI23,I36toI37;PRatI17,I28.Theoffgridmarketisdiverse,withsomeCSPVoffgrid
products,suchassolarchargersandsolargenerators,solddirectlytoconsumersorthroughretail
channelsandotherproducts,suchassolarstreetlightingandoffgridpowersystems,soldeither
directlyorthroughentitiessuchasinstallersandcontractors,touserssuchasindustrial,commercial,
andgovernmententities.CRatI42;PRatI31.
120
Forexample,manynonresidentialinstallersalsoinstallresidentialCSPVsystems,andwhat
someconsiderasalargecommercialinstallationmightqualifyasautilityinstallationtoothers.See,
e.g.,CRatI34,I39;PRatI26,I29.
121
CRatI33toI35,V2atn.7,V3atn.10;PRatI24toI27,V1atn.7,V2atn.10.
122
CRatV1;PRatV1.
123
Residentialinstallationsincreasedby423percentbetween2012and2016,andutility
installationsincreasedby488percent.CRatV1toV2;PRatV1toV2;CR/PRatFigureV1.

27


photovoltaicgeneratingcapacitywasinoperationacrosstheUnitedStates,representing60
percentoftotalU.S.solarphotovoltaicinstallations(includingthinfilm).124
Since2009thefirstyearoftheperiodexaminedintheCSPVIantidumpingand
countervailingdutyinvestigationstherehasbeenashiftinthedistributionofsalesamongthe
threemarketsegments.In2009,thecommercialsegmentaccountedforthelargestshareof
themarket,followedbytheresidentialandutilitiessegments,125whereasthroughoutthe2012
to2016POIintheinstantsafeguardinvestigation,utilitieswerethelargestsegmentoftheU.S.
market,126followedbytheresidentialandcommercialsegments.127DuringthePOI,the
domesticindustryandimporterseachsoldCSPVproductsintheU.S.markettodistributors,128
residentialandcommercialinstallers,andutilitycustomers.129Thevastmajorityofthe
domesticindustrysshipmentsservedresidentialandcommercialinstallersin2016,whereasa
majorityofimportswereshippedtotheutilitysegment.130

2. SupplyConditions

DuringthePOI,theU.S.marketwassuppliedprimarilybyimportsandtoacontinuously
lesserdegreebythedomesticindustry.131
Domesticindustry:Fourfirms(SolarWorld,Suniva,MissionSolar,andTesla)submitted
dataontheirU.S.CSPVcellproductionoperations.132InadditiontoSunivaandMissionSolar,

124
CRatV3;PRatV2toV3.
125
CSPVI,USITCPub.4360at29n.258,FigureII1(identifyingshipmentstothecommercial
segmentof241,520MWin2009comparedto195,391MWfortheresidentialsegment,and30,407MW
fortheutilitysegment).
126
In2016,10.6GWofphotovoltaicproductswasinstalledintheutilitysegment(includingthin
film),comparedto2.6GWintheresidentialsegment,and1.6GWinthecommercialsegment.CR
atI39;PRatI29;CR/PRatFigureV1.
127
CR/PRatFigureV1.
128
DistributorstypicallysellCSPVproductsintotheresidentialandcommercialmarket,including
toinstallers,althoughSunivareportedthatsomeofitssalestodistributorsservedtheutilitysegment.
CRatI37atnn.99,100;PRatI28atnn.99,100.
129
CRatI37toI38;PRatI28;CR/PRatTableI1.DomesticallyproducedCSPVcellsare
typicallyinternallyconsumedtoproducesolarmodulesbyU.S.producers,althoughaminoramount
weresoldtofirmsthatfabricatemodulesorpanels.CR/PRatTableI1.
130
CR/PRatTableI1.
131
CR/PRatTableIV3,TableC1b.
132
SunivaexpandeditsCSPVcellproductionoperationsin2009,2010,andJuly2016,but
suspendeditsCSPVcelloperationsinApril2017aspartofitschapter11bankruptcyfiling.SolarWorld
producedCSPVcellsthroughoutthePOI;it***,expandeditscellcapacityin2014,***.Aspartofa
seriesofcostcuttingmeasures,SolarWorld***.MissionSolaropeneditsntypemonocrystalline
photovoltaiccellproductionlinein2014,***,andclosedtheCSPVcellproductionlineinSeptember
2016***duetothecostlinessofkeepingupwithtechnologicaladvancementnecessarytocompete.
Teslaproduced***ofCSPVcellsin2016thatwassolelyfor***.CRatIII9toIII17;PRatIII5toIII9;
InjuryHearingTr.at36,8485,99.

28


severalotherfirmsclosedtheirCSPVcelloperationsduringorimmediatelyfollowingthePOI.133
The***CSPVcellproducers,SunivaandSolarWorld,togetheraccountedfortheoverwhelming
majority(***percent)ofU.S.CSPVcellproductionbykWin2016.134
FifteenfirmsreporteddataontheirU.S.CSPVmodulemanufacturingoperations.The
largestU.S.producersofCSPVmodulesare***,accountingfor***percent,***percent,and
***percentofU.S.moduleassemblyduringthePOI,respectively.135Anumberoffirmsclosed
theirU.S.CSPVmoduleoperationsduringthePOI.136
ThedomesticindustrysshareoftheU.S.marketforCSPVproductsfellfromapeakof
***percentofthemarketin2012to***percentby2016.137Thedomesticindustryscapacity
toproduceCSPVcellsandCSPVmoduleswassubstantiallylowerthanapparentU.S.
consumptionthroughoutthePOI.138
Imports:Importsasawholeaccountedforthevastmajorityofthemarket,andtheir
shareofapparentU.S.consumptionincreasedfrom***percentin2012to***percentin
2016.139Withtheexceptionof2013,followingthefirstantidumpingandcountervailingduty
investigationonCSPVcellsandmodules,importsfromChinahaveconsistentlybeenthelargest
oroneofthelargestsourcesofimports.OtherlargesourcesincludedTaiwan(particularlyfrom
2012to2014),KoreaandMalaysia(2016),andMexico(eachyear).140

3. Substitutability

ThroughoutthePOI,U.S.producersandimportersmadecommercialshipmentsofa
widevarietyofCSPVproducts,predominantlyintheformofmodules.141Importedand
U.S.manufacturedCSPVproductsweresoldinarangeofwattagesandconversionefficiencies,
andmodulesweresoldinboth60celland72cellforms.142ImportedandU.S.manufactured
CSPVproductsalsoweresoldtooverlappingmarketsegmentsthroughoverlappingchannelsof
distribution,particularlytoresidentialandcommercialinstallers.143IntheU.S.marketfor
CSPVproducts,purchasersconsideravarietyoffactorsintheirpurchasingdecisions,butprice

133
CR/PRatTableIII2,TableIII3.
134
CRatIII22;PRatIII11.
135
CRatIII23;PRatIII11.
136
CR/PRatTableIII2,TableIII3.
137
CR/PRatTableIV4.
138
CompareCR/PRatTableIII4(CSPVcellcapacity)andTableIII7(CSPVmodulecapacity)with
CR/PRatTableIV4(apparentU.S.consumption).
139
CR/PRatTableIV4.
140
CR/PRatTableIV4.
141
CR/PRatTableII5(importedtechnologies),TableIII6(U.S.manufacturedtechnologies),
TableII4(importedforms),TableIII11(U.S.manufacturedforms).
142
CR/PRatTableV11;CRatI19toI21;PRatI14.
143
CR/PRatTableI1;CRatI15;PRatI11.

29


continuestobeanimportantfactor.144Additionally,mostU.S.producers,importers,and
purchasersreportedthatU.S.producedCSPVproductswereinterchangeablewithimported
CSPVproducts.145Accordingly,wefindthatimportedCSPVproductsarehighlysubstitutablefor
U.S.manufacturedCSPVproductsandpriceisanimportantconsiderationinpurchasing
decisions.146

4. OtherConditionsofCompetition

Rawmaterialsaccountforthelargestcomponentofthetotalcostofgoodssoldforboth
CSPVcellsandCSPVmodules.147RawmaterialcostsforCSPVmodules,muchofwhichisthe
costoftheCSPVcell,accountedfor84.9percentofU.S.CSPVmoduleproducerstotalcostof
goodssoldin2016,upfrom58.2percentin2012.148RawmaterialcostsforCSPVcells
accountedfor***percentofU.S.CSPVcellproducerstotalcostofgoodssoldin2016,upfrom
***percentin2012.149Polysiliconisakeyrawmaterialusedintheproductionofthewafers
thatareusedtomanufactureCSPVcellsandotherhightechproducts.150Historically,

144
CR/PRatTableV4(indicatingthatthemostoftencitedtopthreefactorsthatfirmsconsider
intheirpurchasingdecisionsforCSPVproductswereprice(81firms),quality/performance(77firms),
andavailability(42firms)).Purchasersidentifiedthefollowingfactorsthattheyconsideredin
determiningthequalityofCSPVproducts:output,efficiency,longevityandlongtermperformance
degradation,outputtolerances,warranty(suppliersabilitytobackthewarranty),historicalfailurerates,
appearance(matchingcellcolorsandframestructure),salessupport,bankability,financialstrengthof
manufacturer,thirdpartytesting,andULcertification).CRatV21;PRatV14;CR/PRatTableV4.
SevenpurchasersreportedthattheydidnotpurchasedomesticproductbecauseU.S.manufacturers
failedbankabilityrequirements,didnotmeetqualityrequirements,hadlimitedavailability,anddidnot
sellstandaloneCSPVproducts.CRatV23;PRatV16.
145
CR/PRatTableV8.
146
CRatV19;PRatV13;CR/PRatTableV4;InjuryHearingTr.at9798(citingSEIAscomment
inaNewYorkTimesarticlethatWearecompetingonpriceandpricealone.Ifyouchangethe
underpinningsofthat,itundermineswhatweredoing.),112;SunivasPosthearingInjuryBriefat
AttachmentN(DianeCardwell,SolarTradeCase,withTrumpasArbiterCouldUpendMarket,NewYork
Times(June30,2017)).
147
CRatV27;PRatV18.
148
CR/PRatV27toV28;PRatV18toV19.
149
CR/PRatV27toV28;PRatV18toV19.
150
CRatV27;PRatV18.

30


polysiliconcostshavebeenvolatile.151DuringthePOI,thepriceofpolysiliconingotsandwafers
fluctuatedbutdeclinedoverallby52.6percentforingotsandby54.5percentforwafers.152
DuringthePOI,domesticproducersandimportersreportedsellingCSPVproductsusing
primarilytransactionbytransactionnegotiationsandalsocontracts.153In2016,domestic
producerssoldthemajorityoftheirCSPVproductsthroughshorttermcontractsandthe
remainderonaspotbasis,whereasimporterssoldmostoftheirCSPVproductsthroughamix
ofshortterm,annual,andlongtermcontracts.154

D. TheDomesticIndustryisSeriouslyInjured

1. SignificantIdlingofProductiveFacilities

Inassessingwhetherthedomesticindustryisseriouslyinjured,wefirstexamined
whethertherehasbeenasignificantidlingofU.S.productivefacilitiesintermsofplantclosures
and/orunderutilizationofproductivecapacitytomanufactureCSPVproducts.Thirtythree
CSPVcellorCSPVmodulefacilitiesoperatedintheUnitedStatesasofJanuary1,2012,butonly
13ofthosefacilitiesremainedopenbyDecember31,2016.155Ofthe16additionalfacilities
thatopenedduringthePOI,fiveclosed.156Twofirmsannouncedplansfornewfacilities,but

151
In2003,globalsuppliesofpolysiliconwereinadequatetomeetglobaldemandbythe
semiconductorindustryandparticularlytheCSPVindustry,sospotpricesofpolysiliconrosefrom$35/kg
in2003toahighof$500/kgin2008(andcontractpricesrosefrom$25/kgto$85/kginthisperiod).By
2008,globalsupplyexceededglobaldemand,andpolysiliconspotandcontractpricesthenfell
substantiallytoanestimated$35/kgby2012.CSPVI,USITCPub.4360at28.
152
CR/PRatFigureV7.Themajorityofdomesticproducers(9of11)andimporters(32of44)
reportedthatpricesofrawmaterialsforCSPVproductshavedeclinedsince2012.CRatV28;PR
atV19.
153
CR/PRatTableV9.
154
CR/PRatTableV10.AllfiverespondingU.S.producersandmostimportersreportedthat
shorttermcontractsdidnotallowforpricerenegotiations,hadfixedpricesandquantities,anddidnot
havemeetorreleaseprovisions.TwooffourU.S.producersreportedthattheirannualcontractsdid
notallowforpricerenegotiations,hadfixedpricesandquantities,anddidnothavemeetorrelease
provisions,whereasthemajorityofU.S.importersreportedthattheirannualcontractsallowedforprice
renegotiations,hadfixedpricesandquantities,anddidnothavemeetorreleaseprovisions.CRatV31;
PRatV20toV21.
155
CR/PRatTableIII3;SolarWorldsPosthearingInjuryBriefat4,6,Exhibit1,sectionIX
at6876,Exhibit351to3524,Exhibit36;InjuryHearingTr.at113(Shea),409410(Werner),333;
SolarWorldsPrehearingInjuryBriefat2,1114,2829,43;SunivasPosthearingInjuryBriefat2,
Exhibit9atQuestion9,AttachmentK;SunivasPrehearingInjuryBriefat2628.
156
CR/PRatTableIII3.Duetothemanyfacilityclosures,theinformationonthedomestic
industrydoesnotincludedataforallU.S.producersofCSPVcellsandCSPVmodulesthatoperated
duringthePOI,andforsomefirmsonlyaportionoftheirdatawasavailable.Forexample,the
Commissionsreportincludedavailableinformationforthreefirmsthatrespondedtoquestionnairesin
(Continued)

31


thosefacilitieswerenotcommerciallyoperationalbyJuly2017.157Mostoftheproducersthat
wentoutofbusinesswereindependentmoduleproducerswithoutintegratedcellproduction
operations.158
U.S.cellcapacityincreasedirregularlyby***percentoverthePOI,increasingfrom***
kWin2012to***kWin2013,decliningto***kWin2014,159increasingto***kWin2015,
andreachingaperiodhighof***in2016.160Productionincreased***percentoverall,but
fromalowlevelof***kWin2012to***kWin2013,***kWin2014,***kWin2015,and***
kWin2016.161Forthedomesticindustryasawhole,capacityutilizationforCSPVcells
increasedirregularlybutremainedbelowfullcapacity,withcapacityutilizationincreasingfrom
***percentin2012to***percentin2013andaperiodhighof***percentin2014before
decliningto***percentin2015and***percentin2016.162
U.S.modulecapacityincreasedirregularlyby34.0percentoverthePOI,decliningfrom
929,827kWin2012to913,452kWin2013and716,900kWin2014,increasingto871,603kW
in2015,andreachingaperiodhighof1,245,807kWin2016.163Productiondecreasedfrom
538,633kWin2012to447,129kWin2013,440,259kWin2014,552,968kWin2015,and
669,089kWin2016,foranoverallincreaseof24.2percent.164Capacityutilizationfor
CSPVmodulesremainedwellbelowfullcapacity,withcapacityutilizationdecreasingfrom
57.9percentin2012to48.9percentin2013,increasingto61.4percentin2014andaperiod
highof63.4percentin2015anddecliningto53.7percentin2016.165Duringthisperiod,the
domesticindustryincreasedtheshareofCSPVmodulesitassembledintheUnitedStatesfrom
U.S.originCSPVcells.Thistrendresultedfromtheclosureofanumberofindependentmodule
producers.166

(Continued)
theCSPVIIproceedingsbuthavesinceceasedoperations.See,e.g.,CRatIII23atn.44;PRatIII11at
n.44.
157
CR/PRatTableIII3.
158
CR/PRatTableIII3.
159
CRatIII17;PRatIII10.
160
CR/PRatTableIII4.TheincreasesinCSPVcellcapacitybetween2014and2016reflected
MissionSolars***,SolarWorlds***,Sunivas***,andTeslas***.CRatIII17toIII18;PRatIII10.
161
CR/PRatTableIII4.
162
CR/PRatTableIII4.In2016,MissionSolarwasintheprocessofshuttingdownitsCSPVcell
linewhileTeslawasintheprocessofstartingupitsowncellproductioninthatyearbutwasprimarily
engagedinresearchanddevelopment.CRatIII10,III15toIII16;PRatIII5,III8toIII9.
163
CR/PRatTableIII7.
164
CR/PRatTableIII7.
165
CR/PRatTableIII7.
166
Eachyearfrom2012to2015,thedomesticindustryincreasedtheshareofitsCSPVmodules
thatwereassembledfromU.S.manufacturedCSPVcellswiththeshareincreasingfrom***percentin
2012to***percentin2013,***percentin2014,andaperiodhighof***percentin2015;theshare
declinedto***percentin2016,alowersharethanin2014and2015.CR/PRatTableIII8.Theshareof
modulesassembledbyfirmswithoutintegratedcelloperationsdeclinedfrom***percentin2012to
***percentin2016.CR/PRatTableIII7.

32


ThedomesticindustryincreasedCSPVcellandCSPVmodulecapacity,anditincreased
productionofbothCSPVcellsandCSPVmodulesduringthePOI.Neitheroftheseincreases,
however,approachedthemagnitudeoftheexplosivegrowthinapparentU.S.consumption
duringthisperiod.Instead,dozensofU.S.facilitiesclosedtheiroperationsduringthisperiodas
importscapturedmostofthegrowthindemand.Thoseproducersremaininginthemarket
continuedtooperateatbelowfullcapacity,particularlyforCSPVmoduleassemblyoperations.
Basedonthisevidence,onbalance,wefindasignificantidlingofdomesticproductivefacilities
duringthePOI.

2. SignificantUnemploymentorUnderemployment

Wenextexaminedwhethertherehasbeensignificantunemploymentor
underemploymentinthedomesticindustry.Thesubstantialnumberoffacilityclosures
describedaboveresultedinextensivelayoffsandtheawardofU.S.TradeAdjustment
AssistanceActbenefitstomanyworkersduringthePOI;inaddition,workersatsomefacilities
experiencedtemporaryshutdownsorproductionslowdowns,whichledtolayoffsand
underemployment.167Solarmanufacturinginvolveshighlytrained,skilledworkers.168
Accordingtoquestionnairedata,theoverallnumberofproductionandrelatedworkers
(PRWs)engagedinU.S.CSPVcelloperationsdeclinedfrom***PRWsin2012to***PRWsin
2013and***PRWsin2014,andincreasedto***PRWsin2015and***PRWsin2016,an
overallincreaseof***percent.169AlthoughtheoverallincreaseinemploymentoverthePOI
appearsconsistentwiththe***percentincreaseinU.S.productionofCSPVcells,theincrease
attheendofthePOIisprimarilyexplainedby***.170
ForU.S.CSPVmoduleoperations,overallemploymentdeclinedfrom1,293PRWsin
2012to1,080PRWsin2013and956PRWsin2014,andincreasedto1,038PRWsin2015and
1,253PRWsin2016,anoveralldecreaseof3.1percentdespitedramaticgrowthinapparent
U.S.consumptionofCSPVproducts.171TheseemploymentdatadonotreflectpostPOI

167
CR/PRatTableIII2;SunivasPrehearingInjuryBriefat45,Exhibit55.Asindicatedearlier,
themanyfacilityclosureshaveimpactedtheavailabledatainthisinvestigation,soquestionnairedata
mayunderstateemploymentfor20122016.
168
CSPVII,USITCPub.4519at16,I28toI29;SunivasPrehearingInjuryBriefat4445;seealso,
e.g.,EDISDoc.625303.
169
CR/PRatTableIII16.ThetotalnumberofhoursworkedbyandwagespaidtoCSPVcell
employeesfollowedsimilartrendstoPRWs,decliningbetween2012and2014andincreasing
thereafter.ForU.S.CSPVcellmanufacturers,hourlywages,unitlaborcosts,andproductivity
(watts/hour)werehigherin2016thanin2012by***percent,***percent,and***percent,
respectively,whereasthenumberofhoursworkedperemployeewas***percentlower.CR/PRat
TableIII16.
170
CRatIII38;PRatIII19.
171
CR/PRatTableIII17.ThetotalnumberofhoursworkedandwagespaidtoCSPVmodule
employeesfollowedsimilartrendstoPRWs,decliningbetween2012and2014andincreasing
thereafter.ForU.S.CSPVmodulemanufacturers,hourlywagesfluctuatedupwardthroughoutthePOI,
(Continued)

33


developments,suchasSunivasApril2017suspensionofoperationsforitscellandmodule
factoriesaspartofitschapter11bankruptcyfilingorSolarWorldsJune2017issuanceofWARN
Actnotificationsto***,layoffof360employeesinmidJuly2017,and***.172
Basedontheevidence,wefindsignificantunemploymentandunderemploymentinthe
domesticindustryduringthePOI.

3. InabilityofaSignificantNumberofFirmstoCarryOut
DomesticProductionOperationsataReasonableLevelofProfit

Wenextexaminedthedomesticindustrysprofitability.Thevalueofthedomestic
industrysnetsalesdeclinedoverthePOI,decliningfrom$***in2012to$***in2013,
increasingto$***in2014and$***in2015anddecliningto$***in2016,foranoverall
declineof2.9percent.173Itscostofgoodssoldtonetsalesratiowashigh,nearorexceeding
100percent,decreasingfrom***percentin2012to***percentin2013,***percentin2014,
and***percentin2015,andincreasingto***percentin2016.174Consistentwithoverall
declinesinitsnetsalesvalueandhighcostofgoodssoldtonetsalesratio,thedomestic
industryexperiencedoperatinglossesthroughoutthistime,withitsoperatinglossimproving
from$***in2012tooperatinglossesof$***in2013,$***in2014,and$***in2015before
deterioratingtoanoperatinglossof$***in2016.175Despiteextremelyfavorabledemand
conditions,thedomesticindustryalsoexperiencednetlossesthroughoutthisperiod,with
trendsinnetlossesfollowingthoseforoperatinglosses,improvingfromanetlossof$***in
2012tonetlossesof$***in2013,$***in2014,and$***in2015anddeterioratingtoanet

(Continued)
whileunitlaborcostsfluctuateddownward.Productivityincreasedcontinuallyfrom***watts/hourin
2012to***watts/hourin2016.CR/PRatTableIII17.
172
CR/PRatTableIII2;InjuryHearingTr.at36,85,9192,9596,99,23638;EDISDoc.620012.
173
CR/PRatTableC1b.ThedomesticindustrysnetsalesvalueofCSPVcellsdecreasedfroma
periodhighof$***in2012to$***in2013,$***in2014,and$***in2015thenimprovedsomewhat
to$***in2016.CR/PRatTableIII18.ForCSPVmodules,itsnetsalesvaluedeclinedfromaperiodhigh
of$607.6millionin2012to$410.6millionin2013,increasedto$420.7millionin2014,$476.9millionin
2015,and$484.4millionin2016.CR/PRatTableIII21.
174
CR/PRatTableC1b.ForCSPVcells,thedomesticindustryscostofgoodssoldtonetsales
ratiodecreasedfrom***percentin2012to***percentin2013,***percentin2014,and***percent
in2015,andincreasedto***percentin2016.CR/PRatTableIII18.ForCSPVmodules,thedomestic
industryscostofgoodssoldtonetsalesratiodecreasedfrom141.3percentin2012to132.9percentin
2013,100.5percentin2014,and90.8percentin2015,andincreasedto100.9percentin2016.CR/PR
atTableIII21.
175
CR/PRatTableC1b.ForCSPVcells,thedomesticindustrysoperatinglossimprovedfrom
$***in2012tooperatinglossesof$***in2013and$***in2014,anddeterioratedtooperatinglosses
of$***in2015and$***in2016.CR/PRatTableIII18.ForCSPVmodules,thedomesticindustrys
operatinglossimprovedfrom$377.1millionin2012to$204.0millionin2013,$58.6millionin2014,
and$10.5millionin2015,anddeterioratedto$215.0millionin2016.CR/PRatTableIII21.

34


lossof$***in2016.176Thedomesticindustrysnetincomemarginimprovedfromalossof***
percentin2012tolossesof***percentin2013,***percentin2014,and***percentin2015,
butdeterioratedtoalossof***percentin2016.177***ofthefirmsthatsubmittedfinancial
dataontheirCSPVcelloperationsreportedoperatinglossesandnetlossesineachyear
between2012and2016(exceptfor***),andthemajorityoffirmssubmittingfinancialdataon
theirCSPVmoduleoperationsreportedoperatinglossesandnetlossesthroughoutthe2012to
2016period,withlossesworseningin2016.178Inadditiontothehundredsofmillionsofdollars
inlossesthroughoutthePOI,thedomesticindustrysdismalanddecliningoverallfinancial
performanceisfurtherillustratedbytheclosuresandbankruptciesidentifiedabove.179Based
onthisinformation,wefindthatasignificantnumberoffirmswereunabletocarryout
domesticproductionoperationsatareasonablelevelofprofitduringthePOI.

4. InabilityofDomesticProducerstoGenerateAdequate
CapitaltoFinancetheModernizationofTheirDomestic
PlantsandEquipmentorInabilitytoMaintainExisting
LevelsofExpendituresforResearchandDevelopment

Thedomesticindustryscapitalexpendituresincreasedoverallbetween2012and2016,
reachingtheirhighestlevelin2015,butthelargestshareoftheseexpenditureswasrelatedto
expendituresbyonefirm(***)onnewCSPVcelloperationsthathavenotyetbecome
commerciallyoperational.180Thedomesticindustrysresearchanddevelopmentexpenses

176
CR/PRatTableC1b.ForCSPVcells,thedomesticindustrysnetlossimprovedfrom$***in
2012tonetlossesof$***in2013and$***in2014,anddeterioratedtonetlossesof$***in2015and
$***in2016.CR/PRatTableIII18.ForCSPVmodules,thedomesticindustrysnetlossimprovedfrom
$551.2millionin2012to$217.1millionin2013,$54.5millionin2014,and$21.1millionin2015,and
deterioratedto$224.9millionin2016.CR/PRatTableIII21.
177
CR/PRatTableC1b.ForCSPVcells,thedomesticindustrysnetlossratioimprovedfrom***
percentin2012to***percentin2013,and***percentin2014,butdeclinedto***percentin2015
andimprovedsomewhattoanetlossof***percentin2016.CR/PRatTableIII18.ForCSPVmodules,
thedomesticindustrysnetlossratioimprovedfromalossof90.7percentin2012tolossesof52.9
percentin2013,13.0percentin2014,and4.4percentin2015,anddeterioratedtoanetlossof46.4
percentin2016.CR/PRatTableIII21.
178
CR/PRatTableIII18(indicatingthat***of***respondingfirmsreportedoperatinglosses
ontheirCSPVcelloperationsin***and***of***respondingfirmsreportedanoperatinglossin***,
andthat***of***respondingfirmsreportednetlossesontheirCSPVcelloperationsin***and***of
***respondingfirmsreportedanoperatinglossin***),TableIII21(indicatingthat8of11responding
firmsreportedoperatinglossesontheirCSPVmoduleoperationsin2012,comparedto9of12in2013,
10of11in2014,4of7in2015,and7of8firmsin2016,andthat8of11respondingfirmsreportednet
lossesontheirCSPVmoduleoperationsin2012,comparedto10of12in2013,9of11in2014,4of7in
2015,and6of8firmsin2016).
179
See,e.g.,CR/PRatTableIII2,TableIII3.
180
Thedomesticindustrystotalcapitalexpendituresincreasedfrom$***in2012to$***in
2013,declinedto$***in2014,increasedto$***in2015,anddeclinedto$***in2016.Itscapital
(Continued)

35


generallydeclinedbetween2012and2015,butincreasedin2016,largelydueto***.181The
valueofthedomesticindustrysproductionassetsincreasedoverall,againlargelydueto***.182
Otherdomesticproducersrecognizedassetimpairments,183reservedorwroteoffproduction
equipment,184***,185***,186andotherwiseslowedorshutdownproduction.187
Domesticproducersalsoidentifiedaseriesofactualnegativeeffectsontheir
investment,growth,anddevelopmentduetoimports.Theseincludedtabling,postponing,and
deferringprojects;rejectionofinvestmentproposals;reductioninthesizeofcapital
investments;negativereturnsoninvestments;inabilitytogenerateadequatecapitaltofinance
modernizationofdomesticplantsandequipment;increasedcostsfordebtfinancing;inability
tomaintainexistinglevelsofresearchanddevelopmentexpenditures;rejectionofbankloans;
loweringofcreditratings;inabilitytoissuestocksorbonds;inabilitytoservicedebt;lowered
bankability;188andothersuchdifficulties.189Domesticproducersalsoanticipatedadditional
negativeeffectsfromimports.190Basedonthisevidence,wefindthatasignificantnumberof
domesticproducerswereunabletogenerateadequatecapitaltofinancethemodernizationof
theirdomesticplantsandequipment,andasignificantnumberofdomesticproducerswere

(Continued)
expendituresonCSPVcellsincreasedfrom$***in2012to$***in2013,declinedto$***in2014,
increasedto$***in2015,anddeclinedto$***in2016.Thedomesticindustryscapitalexpenditures
relatedtoCSPVmodulesincreasedfrom$***in2012to$***in2013,and$***in2014,declinedto
$***in2015,andincreasedto$***in2016.CR/PRatTableIII24;CRatIII56;PRatIII28.
181
Thedomesticindustrysresearchanddevelopmentexpensesdeclinedfrom$***in2012to
$***in2013,and$***in2014andincreasedto$***in2015and$***in2016.ForCSPVcells,its
researchanddevelopmentexpensesdeclinedoverall,decreasingfrom$***in2012to$***in2013and
$***in2014,increasingto$***in2015anddecliningto$***in2016.Itsresearchanddevelopment
expensesforCSPVmodulesincreasedoverall,decliningfrom$***in2012to$***in2013and$***in
2014and2015,andincreasingto$***in2016.CR/PRatTableIII24;CRatIII58;PRatIII29.
182
Thedomesticindustrysproductionassetsincreasedfrom$***in2012to$***in2013,$***
in2014,$***in2015,and$***in2016.ItsCSPVcellassetsincreasedfrom$***in2012to$***in
2013,$***in2014,and$***in2015,anddeclinedto$***in2016.CSPVmoduleassetsdecreased
from$***in2012to$***in2013,andincreasedto$***in2014,$***in2015,and$***in2016.
CR/PRatTableIII24;CRatIII59;PRatIII29.
183
See,e.g.,CRatIII55(***),III59(***);PRatIII28(***),III29(***).
184
See,e.g.,CRatIII57atn.78(***);PRatIII29atn.78(***).
185
See,e.g.,CR/PRatTableIII2(***).
186
See,e.g.,CR/PRatTableIII2(***).
187
See,e.g.,CR/PRatTableIII2(***).
188
Ataminimum,bankabilityencompassesboththefinancialviabilityofasupplierandthe
productsperformancereliability,especiallyintheCSPVindustrywheremanufacturersprovide
warrantiesof25yearsorlongerontheirproducts;bankabilityalsoallowsinstallingfirmstoapplyfor
nonrecourseloansfortheirsolardevelopmentprojects.See,e.g.,CSPVI,USITCPub.4360at11
n.84,2728.
189
CR/PRatTableIII25,TableE1.
190
CR/PRatTableIII25,TableE1.

36


unabletomaintainexistinglevelsofexpendituresforresearchanddevelopment,despite
explosivedemandgrowthduringthePOI.

5. DeclineinSalesorMarketShare,HigherandGrowing
Inventories,DownwardTrendsinProduction,Profits,
Wages,Productivity,orEmploymentintheDomesticIndustry

ThedomesticindustrysU.S.shipmentsdecreasedfrom***kWin2012to***kWin
2013,increasedto***kWin2014and***kWin2015,anddecreasedto***kWin2016,for
anoverallincreaseof***percent.191Becausethisoverallincreasewasdwarfedbythe***
percentgrowthinapparentU.S.consumptionduringthisperiod,thedomesticindustrys
marketsharefellfromaperiodhighof***percentin2012to***percentin2013,increased
somewhatto***percentin2014,anddecreasedto***percentin2015andaperiodlowof
***percentin2016.192
Thedomesticindustrysendofperiodinventoriesincreasedoverallby***percent
between2012and2016,193whereasU.S.importersendofperiodinventoriesmorethan***,
withmostoftheincreaseoccurringin2015and2016.194Moreover,asofthedeadlinefor
submittingquestionnairedata(June29,2017),U.S.importersreportedthattheyalreadyhad
arrangedfortheimportationofanadditional10.2millionkWinCSPVproductsforcalendar
year2017.195Accordingtopetitioners,additionalimportsofCSPVproductssurgedintotheU.S.
marketinadvanceofanyglobalsafeguardmeasure,leadingtofurtherincreasesininventories
andmanufacturershortages.196Respondentsdisputethatsuchasurgeoccurredin2017,and

191
ItsU.S.shipmentvaluesdecreasedfrom$***in2012to$***in2013,increasedto$***in
2014and$***in2015,and$***in2016,foranoverallincreaseof***percent.CR/PRatTableC1b.
192
Byvalue,thedomesticindustrysmarketsharefellfromaperiodhighof***percentin2012
to***percentin2013,increasedmarginallyto***percentin2014,anddecreasedto***percentin
2015andaperiodlowof***percentin2016.CR/PRatTableC1b.
193
Thedomesticindustrysendofperiodinventoriesdeclinedfrom***kWin2012to***kW
in2013,and***kWin2014andincreasedto***kWin2015and***kWin2016.CR/PRatTableC1b.
194
U.S.importersendofperiodinventoriesincreasedfrom***kWin2012to***kWin2013,
***kWin2014,***kWin2015,and***kWin2016,anoverallincreaseof***percent.CR/PRat
TableC1b.
195
Atthattime,U.S.importersreportedthattheyhadarrangedtoimport1.7millionkWinthe
firstquarterof2017,2.7millionkWinthesecondquarterof2017,3.5millionkWinthethirdquarterof
2017,and2.3millionkWinthefourthquarterof2017.CR/PRatTableII6.
196
See,e.g.,SunivasPosthearingInjuryBriefatExhibit9at41;Sunpremebagsdealtosupply
150MWofheterojunctionsolarmodulestoTGCMinpvmagazine(Sept.12,2017),EDISDoc.623538
(Analystsandsolardevelopershavetoldpvmagazinethatmosttier1PVmakershavesoldoutof
productthroughtheendoftheyear,asinstallersandconstructioncontractorshoardPVmodulesin
anticipationoftradeactionbytheTrumpAdministration.);seealsoRemedyHearingTr.at65,6970,
109,380.Petitionersemphasizethatimprovementsincellandmoduleefficiencieseachyearcan
quicklymakeinventoriesobsolete,increasingtheincentivetooffloadinventoriesatlowprices.
SolarWorldsPosthearingInjuryBriefat12;SolarWorldsPrehearingInjuryBriefat88.

37


statethatimporterinventorieshavenotincreasedrelativetochangesinapparentU.S.
consumptioneveniftheyhaveincreasedabsolutely.197
Asindicatedabove,thedomesticindustryscapacityandproductionlevelsdidnot
increasealongwithdemandgrowth,anditscapacityutilizationforCSPVcellsandCSPV
modulesremainedlowanddroppedattheendofthePOI.Thesignificantidlingofproductive
facilitiescontinuedinto2017,andtwoadditionalU.S.productionfacilitieshadclosedby
July2017.198Thedomesticindustrysunemploymentandunderemploymentworsenedafter
thepetitionintheinstantinvestigationwasfiled,particularlyafterSunivasbankruptcyfiling
andSolarWorldsissuanceofWARNActnotices.AttheendofthePOI,thedomesticindustrys
netsalesvaluedeclinedanditsCOGStonetsalesratioincreasedtoabove100percent,leading
todeteriorationinitsoperatingandnetlosses,asindicatedabove.Thesefinancialdifficulties
persistedinto2017,asadditionalfirmsshutdowntheiroperationsand/ordeclaredbankruptcy.

6. ExtenttoWhichtheU.S.MarketisaFocalPointforDiversionofExports

Asreportedinresponsetotheforeignproducerquestionnaires,theforeignindustries
havesubstantialandincreasingcapacitytomanufactureCSPVcellsandCSPVmodules.199Their
collectivecapacityconsistentlyexceededtheircombinedproductionlevels.200Theforeign
industriesexcesscapacity,whichgrewbetween2014and2016,consistentlyexceededthesize
oftheentireU.S.market.201Theircombinedendofperiodinventoriesalsoincreasedeachyear
from2012to2016.202Thus,theforeignindustriescollectivelyhavetheabilitytoexport
significantvolumesofCSPVproductstotheUnitedStates.

197
SEIAPosthearingInjuryBrief,AppendixAat89.
198
CR/PRatTableIII3.
199
TheforeignindustriescollectiveCSPVcellcapacityincreasedfrom27.3millionkWin2012to
31.2millionkWin2013,36.4millionkWin2014,43.3millionkWin2015,and56.9millionkWin2016.
CR/PRatTableIV89.TheircollectiveCSPVmodulecapacityincreasedfrom25.2millionkWin2012to
29.2millionkWin2013,36.4millionkWin2014,47.9millionkWin2015,and66.6millionkWin2016.
CR/PRatTableIV90.
200
Theforeignindustriescollectivelyproduced18.4millionkWofCSPVcellsin2012,
24.0millionkWin2013,31.2millionkWin2014,38.0millionkWin2015,and48.0millionkWin2016,
whereastheycollectivelyproduced15.8millionkWofCSPVmodulesin2012,20.8millionkWin2013,
28.6millionkWin2014,38.4millionkWin2015,and51.4millionkWin2016.Theyreportedfurther
increasesintheirCSPVcellandCSPVmodulecapacityfor2017and2018thatwouldexceedtheir
projectedproductionlevelsofCSPVcellsandCSPVmodules.CR/PRatTableIV89,TableIV90.
201
Forexample,theforeignindustrysexcessCSPVmodulecapacitywas9.4millionkWin2012,
8.3millionkWin2013,andincreasedfrom7.8millionkWin2014to9.4millionkWin2015and
15.2millionkWin2016.DerivedfromCR/PRatTableIV90.Theselevelsconsistentlyexceeded
apparentU.S.consumptionof***kWin2012,***kWin2013,***kWin2014,***kWin2015,and
***kWin2016.CR/PRatTableC1b.
202
TheforeignindustriescollectiveendofperiodinventoriesofCSPVcellsroseannuallyfrom
664,204kWin2012to858,421kWin2013,1.4millionkWin2014,1.5millionkWin2015,and
2.4millionkWin2016,andtheyprojectedsubstantialCSPVcellinventoriesin2017and2018.The
(Continued)

38


Theforeignindustriesalsopossesstheincentivetoexportsignificantvolumestothe
UnitedStates.Althoughtheforeignindustriescollectivelyconsumethemajorityofthe
CSPVcellsthattheymanufactureintheirhomemarketCSPVmoduleassemblyoperations,203
theirCSPVmoduleoperationsareexportoriented.204TheircombinedexportsofCSPVmodules
increasedfrom2012to2016.205Severalforeignindustriesfaceantidumpingand/or
countervailingdutyordersontheirexportstooneormorenonU.S.markets,includingthe
EuropeanUnion(CSPVcellsandmodulesfromChina,Malaysia,andTaiwan),Canada
(CSPVmodulesfromChina),andTurkey(CSPVmodulesfromChina).206Theforeignindustries
havedemonstratedanabilitytoredirectexportsfromonemarkettoanotherandtoincrease
exportssubstantiallytoindividualmarketsfromoneyeartothenext.207ThelargeU.S.market
hasbeenandwillremainalikelytargetfortheirexports.208Althoughthepartiesdisagreed
aboutdemandforCSPVproductsinothermarkets,209questionnairedataindicatethatthe

(Continued)
foreignindustriescollectiveendofperiodinventoriesofCSPVmodulesroseannuallyfrom
1.5millionkWin2012to1.6millionkWin2013,2.8millionkWin2014,3.1millionkWin2015,and
4.0millionkWin2016,andtheyprojectedsubstantialincreasesinCSPVmoduleinventoriesin2017and
2018.CR/PRatTableIV89.Atthesametime,thevastmajorityofforeignproducersreportedthatthey
couldnotproduceotherproductswiththesameequipmentandworkersusedtoproduceCSPV
products.CRatV8;PRatV5.
203
Theforeignindustriescollectivelyreportedconsumingbetween69.1and79.0percentofthe
CSPVcellsthattheymanufactureintheirhomemarkets,primarilyforinternalconsumption.CR/PR
atTableIV89.
204
Exportsaccountedforbetween55.9percentand77.7percentoftheforeignindustries
collectiveshipmentsduringthePOI.CR/PRatTableIV90.
205
TheforeignindustriescollectiveexportsofCSPVmodulesincreasedfrom12.0millionkWin
2012to13.5millionkWin2013,18.2millionkWin2014,23.4millionkWin2015,and28.0millionkW
in2016.CR/PRatTableIV90.
206
Inaddition,thegovernmentofIndiaiscurrentlyconductinganantidumpingduty
investigationonSolarCellswhetherornotassembledpartiallyorfullyinModulesorPanelsoronglass
orsomeothersuitablesubstratesoriginatinginorexportedfromChina,Malaysia,andTaiwan,andthe
governmentofChinaimposedmeasuresonarawmaterialusedintheproductionofCSPVproducts
(solargradepolysilicon)fromKorea,theEuropeanUnion,andtheUnitedStates.CR/PRatTableI4;CR
atI61toI67;PRatI46toI50.
207
See,e.g.,CR/PRatTableIV90(changesfromoneyeartothenextforexportsofCSPV
modules).Industriesinindividualforeigncountrieshavealsodemonstratedasimilarabilityand
willingnesstoshiftexportmarketsfromyeartothenext.
208
TheU.S.marketwasthefifthlargestglobalmarketin2012,accountingfor11.0percentof
photovoltaicsysteminstallations(includingthinfilm).By2015,theUnitedStateswasthesecondlargest
market,accountingfor14.7GWofphotovoltaicsysteminstallations,orapproximately20percentofthe
globalmarket.CRatIV9;PRatIV5.
209
TherewasalargeincreaseindemandinChinabetween2012and2016.OutsideofChina
andtheUnitedStates,demandalsoincreasedduringthisperiod,thoughataslowerpace(asdeclining
demandinEuropewasoffsetbygrowthelsewhere).GlobaldemandexcludingChinaandtheUnited
Stateseitherslightlyincreasedorslightlydecreasedfrom2015to2016,dependingonthesource.CRat
(Continued)

39


foreignindustriescollectivelyincreasedtheirexportsofCSPVmodulestotheUnitedStates
throughout2012to2016,210andtheU.S.marketaccountedforanincreasingshareoftheirtotal
shipmentsofCSPVmodulesduringthisperiod.211Asdiscussedabove,thevolumeofU.S.
importsroseoverallbetweenJanuary2012andDecember2016,andU.S.importersreported
arrangingforadditionalimportsthroughout2017.
AsfurtherevidenceoftheattractivenessoftheU.S.market,aftertheimpositionofthe
antidumpingandcountervailingdutyordersonimportsfromChinainDecember2012andon
importsfromChinaandTaiwaninFebruary2015,212importsfromothercountriessubstantially
increasedtheirpresenceintheU.S.market.213Bytheendof2015,importshadalmost***
theirlevelfrom2014,andtheycontinuedtogrowinto2016.214Indeed,withoutclosinganyof
theirexistingcapacityinChina,thesixlargestfirmsproducingCSPVcellsandCSPVmodulesin
ChinaincreasedtheirglobalcapacitytoproduceCSPVcellsby***percentbetween2012and
2016,withfourofthesixfirmsaddingCSPVcellmanufacturingcapacityinoneormoreofthe
followingfivecountriesduringthattime:Korea,Malaysia,theNetherlands,Thailand,and
Vietnam.215ThesesamesixfirmsalsoincreasedtheirglobalcapacitytoproduceCSPVmodules
by***percentbetween2012and2016,withoutclosinganyoftheirexistingcapacityinChina,
withfourofthesixfirmsaddingCSPVmodulecapacityinoneormoreofthefollowingsix
countries:Canada,Indonesia,Korea,Malaysia,Thailand,andVietnam.216Notably,imports
fromthefourcountrieswhereChineseaffiliatesaddedbothCSPVcellandCSPVmodule
capacity(Korea,Malaysia,Thailand,andVietnam)increasedtheirshareofapparentU.S.
consumptionfrom***percentin2012to***percentin2016,andmuchofthisincrease
occurredbetween2015and2016,astheircollectiveshareoftheU.S.marketmorethan***

(Continued)
IV9toIV10;PRatIV5toIV7;SolarWorldsPrehearingInjuryBrief,Exhibit12;PetitionersInjury
HearingEconomicSlidesatSlide21(Aug.15,2017),EDISDoc.620615.
210
TheforeignindustriescollectiveexportsofCSPVmodulestotheUnitedStatesincreased
from2.3millionkWin2012to3.2millionkWin2013,4.7millionkWin2014,7.8millionkWin2015,
and11.8millionkWin2016.CR/PRatTableIV90.
211
CR/PRatTableIV90(indicatingthatU.S.exportsaccountedfor15.0percentoftheforeign
industriestotalshipmentsofCSPVmodulesin2012,15.5percentin2013,17.1percentin2014,
20.6percentin2015,and23.6percentin2016).
212
TheantidumpingandcountervailingdutyordersonimportsfromChinaandTaiwanhada
restrainingeffectonimportsfromthosecountries,whichmaintainedapresenceintheU.S.market,but
atlowerlevels.See,e.g.,CR/PRatTableIV3(indicatingthatcombinedimportsfromChinaandTaiwan
declinedfrom***kWin2015to***kWin2016).Indeed,astheCommissionnoted,beforetheimports
subjecttotheCSPVIordershadrecededfromtheU.S.market,importsfromChinaandTaiwanthat
werewithinthescopeoftheCSPVIIinvestigationsincreasedtheirpresenceintheU.S.market.CSPVII,
USITCPub.4519at34.
213
CR/PRatTableIV3,TableC1b.
214
CR/PRatTableIV3,TableC1b.
215
CRatIV39atn.38;PRatIV26atn.38;CR/PRatTableIV17(referringtoCanadianSolar
(China),HanwhaQidong(China),ShanghaiJASolar,JinkoSolar(China),ChangzhouTrina(China),and
YingliGreen).
216
CR/PRatTableIV18;CRatIV39atn.38;PRatIV26atn.38.

40


from***percentin2015to***percentin2016justafterthesecondroundofantidumping
andcountervailingdutyorderswentintoeffectinFebruary2015.217Consistentwiththese
shifts,asubstantialnumberofU.S.importersandpurchasersreportedthattheoriginoftheir
purchaseshadshifted,astheypurchasedCSPVproductsimportedfromothercountries.218
Accordingly,basedonthesubstantialproductioncapacityandavailableunusedcapacity
intheforeignindustries,theirexportorientation,theirwillingnesstoshiftsubstantialvolumes
amongexportmarketsfromoneperiodtothenext,andthedemonstratedattractivenessofthe
U.S.markettotheforeignindustries,wefindthattheU.S.marketisafocalpointforthe
diversionofexports.

7. PriceEffects

WealsoexaminedpricesofCSPVproductsduringthePOI.Asdiscussedabove,
importedCSPVproductsarehighlysubstitutablewithU.S.manufacturedproducts,andpriceis
animportantconsiderationinpurchasingdecisionsinthisindustry.
Inthisinvestigation,twoU.S.producersand31importersprovidedusablequarterlynet
U.S.f.o.b.sellingpricedataforfiveCSPVproductsfortheperiodJanuary2012through
December2016,althoughnotallfirmsreportedpricingdataforallproductsforallquarters.219
TheCommissionaskedquestionnairerespondentstoreportseparatepricingdatafor
monocrystallineandmulticrystallineproductsandtoreportpricingdataon60cellmodulesas
wellas72cellmodules.220Thepricingdataobtainedinthisinvestigationaccountedfor
approximately83.3percentofthedomesticindustrysU.S.shipmentsofCSPVproductsand
74.1percentofU.S.importersU.S.shipmentsofCSPVproductsin2016.221

217
CR/PRatTableIV3,TableC1b;seealsoPetitionersInjuryHearingEconomicSlidesat
Slide31toSlide34(Aug.15,2017),EDISDoc.620615.
218
CRatF12,F22;PRatF4toF6;CR/PRatTableF5(U.S.importers);TableF6(identifying
U.S.importersthatdiscontinuedorreducedimportsfromChinabecauseoftheorders,identifyingU.S.
importersthatdiscontinuedorreducedimportsfromTaiwanbecauseoftheorders,andidentifyingU.S.
importersthatbeganorincreasedimportsfromsourcesotherthanChinaandTaiwan),TableF7
(identifyingU.S.importersthatreportedthattheexistenceoftheantidumpingandcountervailingduty
ordersonimportsfromChinaandTaiwanhadasignificantimpact),TableF8(U.S.purchasers),
TableF9(identifyingpurchasersthatdiscontinuedorreducedpurchasesfromChinabecauseofthe
orders,identifyingU.S.purchasersthatdiscontinuedorreducedpurchasesfromTaiwanbecauseofthe
orders,andpurchasersthatbeganorincreasedpurchasesfromChinaandTaiwan),TableF10
(indicatingthesignificanceoftheordersaccordingtoforeignproducers).
219
Thepricingproductsincludedthefollowing:(1)monocrystallinecellswithanefficiency
between17.0percentand22.0percent;(2)60cellmulticrystallinesiliconmodule,withapeakpower
wattageof240to250,inclusive,PmaxorWp;(3)60cellmonocrystallinesiliconmodule,withapeak
powerwattageof250to300,inclusive,PmaxorWp;(4)72cellmulticrystallinesiliconmodule,witha
peakpowerwattageof290to340,inclusive,PmaxorWp;and(5)72cellmonocrystallinesilicon
module,withapeakpowerwattageof300to350,inclusive,PmaxorWp.CRatV32;PRatV21.
220
See,e.g.,CR/PRatTableV12toTableV16;FigureV10toFigureV12.
221
CRatV32toV33;PRatV21toV22.

41


Basedonthesedata,importedCSPVproductswerepricedlowerthanU.S.
manufacturedproductsin33of52instancesinvolvingapproximatelytwothirdsofthetotal
volumeinthepricingdata(***kW),andwerepricedhigherin19instances(***kW).222Seven
domesticproducersreportedthattheyhadlostsalestoimportedCSPVproductssince2012.223
ThemajorityofpurchasersreportedthattheyhadincreasedtheirpurchasesofimportedCSPV
products,andtheyidentifiedlowerpricemostoftenasthereasonforincreasingtheir
purchasesofimportedCSPVproducts.224PurchasersreportedthatimportedCSPVmodulesasa
shareoftheirtotalpurchasesofCSPVproductsincreasedby15.6percentagepointsfrom
75.6percentoftotalCSPVpurchasesin2012to91.2percentoftotalCSPVpurchasesin2016.225
Wealsoconsideredmovementsinthepricesofproducts1to5duringthePOI.
QuarterlypricesforallfivepricingproductsdeclinedbetweenJanuary2012and
December2016,withpricesofU.S.manufacturedproductsdecliningbetween48.5and
73.2percentandimportedCSPVproductsdecliningbetween45.7and51.0percentduringthis
period.226Accordingtoindustryreports,pricesofCSPVcellsandCSPVmodulesfellby
60.4percentand58.5percent,respectivelyfrom2012to2016.227Eightof12responding
domesticproducersreportedthattheyhadtoreduceprices,andthreereportedhavingtoroll
backannouncedpriceincreasesinordertoavoidlosingsalestocompetitorssellingimported
CSPVproductsduringthePOI.228Ofthe103respondingpurchasers,38reportedthatU.S.
producershadreducedpricesoftheirCSPVproductsinordertocompetewithlowerpriced
imports,and44ofthemreportedthattheydidnotknowwhetherU.S.producershadreduced
theirpricestocompetewithlowerpricedimports.229Severalpurchasersreportedsteeperprice
reductionsin2016.230

222
CR/PRatTableV12toTableV16;FigureV10toV12;CRatV45;PRatV26.
223
CRatV47;PRatV28(notingthatfourdomesticproducersestimatedtotallostsalesof
approximately950,000kWsince2012).
224
CRatV23;PRatV15toV16.Ofthe104respondingpurchasers,91reportedthatsince
2012theyhadpurchasedimportedCSPVproductsinsteadofU.S.manufacturedCSPVproducts.
SeventythreeofthesepurchasersreportedthatimportpriceswerelowerthanU.S.manufacturedCSPV
products,and33reportedthatpricewasaprimaryreasonfortheirdecisiontopurchaseimportedCSPV
productsoverproductsmanufacturedintheUnitedStates.Purchasersestimatedthatthequantityof
importedCSPVproductsthattheypurchasedinsteadofdomesticCSPVproductsrangedfrom54kWto
1.7millionkW,andtotaled3.4millionkW.CRatV50;PRatV30;CR/PRatTableV19,TableV20.
225
CR/PRatTableV19.
226
CR/PRatTableV17.
227
CRatV46;PRatV27toV28;CR/PRatFigureV13.
228
CRatV46;PRatV27toV28(notingthatthreedomesticproducersestimatedtotallost
revenuesofapproximately$140millionsince2012).
229
CRatV51;PRatV31(notingthatpurchasersestimatedthatdomesticproducersreduced
pricesanywherefrom3to70percent,averaging31percent).
230
CRatV51;PRatV31.Thedeclineinpricesbetweenthefourthquarterof2015andthe
fourthquarterof2016wereusuallytwiceaslargeasthepricedeclinesbetweenthefirstquarterof
2015andthefirstquarterof2016accordingtothepricingdatasubmittedinthisinvestigation,as
discussedbelow.DerivedfromCR/PRatTableV11toTableV16.

42


Althoughthedomesticindustrysnetsalesvaluesfelloverallbetween2012and2016,231
itscostofgoodssolddeclinedbyagreateramount.232Asaresult,althoughthedomestic
industryscostofgoodssoldtonetsalesratiowashigh,nearorexceeding***percent
throughoutthisperiod,itdecreasedfrom***percentin2012to***percentin2013,***
percentin2014,and***percentin2015,andincreasedto***percentin2016,asindicated
above.233
Wefindthatthedomesticindustryexperiencedadversepriceconditions,giventhat
importswerelowerpricedthanU.S.manufacturedCSPVproducts,pricesofthedomestic
industrysCSPVproductsfellbetween2012and2016despiteverystrongdemandgrowth,and
thedomesticindustryscostsremainednearoraboveitsnetsalesvaluesthroughoutthePOI.

8. Conclusion

Thus,wefindasignificantidlingofdomesticproductivefacilitiesforCSPVproducts
between2012and2016andsignificantunemploymentandunderemploymentwithinthe
domesticindustry.Asignificantnumberoffirmswereunabletocarryoutdomesticproduction
operationsatareasonablelevelofprofit,andasignificantnumberofdomesticproducerswere
unabletogenerateadequatecapitaltofinancethemodernizationoftheirdomesticplantsand
equipmentortomaintainexistinglevelsofexpendituresforresearchanddevelopment.The
domesticindustryssalesandmarketsharedeclinedsignificantly,andinventorieswerehigh
andgrowingduringthisperiodofadversepriceconditions.Thedomesticindustrys
performanceindicatorsparticularlydeclinedbetween2015and2016andcontinuedto
deteriorateinto2017despiteexplosivedemandgrowth.Basedonthisevidenceandthestatus
oftheU.S.marketasafocalpointforexports,wefindasignificantoverallimpairmentinthe
domesticindustrysposition.Consequently,wefindthatthedomesticindustryisseriously
injured.

E. IncreasedImportsareaSubstantialCauseofSeriousInjury
totheDomesticIndustryManufacturingCSPVProducts

Indeterminingwhetherincreasedimportsareasubstantialcauseofseriousinjury,we
consideredtheimpactofimportsaswellastheimpactofotherpossiblecauses.Asdiscussed

231
Thedomesticindustrysnetsalesvaluedeclinedfrom***in2012to$***in2013,increased
to$***in2014and$***in2015anddeclinedto$***in2016.CR/PRatTableC1b.
232
Thedomesticindustryscostofgoodssoldfellfromaperiodhighof$***in2012toaperiod
lowof$***in2013,increasedto$***in2014and$***in2015,andfellto$***in2016.Itsunitcost
ofgoodssoldfollowedsimilartrendsuntil2015,decliningfrom$***/kWin2012to$***/kWin2013,
increasingto$***/kWin2014butdecliningto$***/kWin2015and$***/kWin2016.CR/PRatTable
C1b.
233
CR/PRatTableC1b.

43


above,thestatutedefinessubstantialcauseasacausewhichisimportantandnotlessthan
anyothercause.234
Wefindthatincreasedimportsareasubstantialcauseofseriousinjurytothedomestic
industrymanufacturingCSPVproducts.In2009,thebeginningoftheperiodofinvestigationin
theCSPVIinvestigations,thedomesticindustryheldthelargestshareofapparentU.S.
consumption(***percent),followedbyimportsfromChinacorrespondingtothescopeof
thoseinvestigations(***percent),andimportsfromallothersources(***percent).235Imports
fromChinaovertookthedomesticindustrysU.S.shipmentsby2010,236andbytheendof2011,
importsfromChinahadnearlydoubledfromtheir2009level.237
AftertheCommissiondeterminedthatthedumpedandsubsidizedimportsfromChina
weremateriallyinjuringthedomesticindustryintheCSPVIinvestigations,U.S.importsof
CSPVcellsproducedinChina,CSPVmodulesassembledinChinafromCSPVcellsmadeinChina,
andCSPVmodulesassembledinathirdcountryfromCSPVcellsmadeinChinabecamesubject
toorderseffectiveDecember7,2012.238BeforethoseimportsbegantorecedefromtheU.S.
market,importsfromChinaandTaiwancorrespondingtothescopeoftheCSPVIIantidumping
andcountervailingdutyinvestigationsincreasedtheirpresenceintheU.S.market.239Those
importsfromChinaandTaiwanalmostcompletelyreplacedthesubstantialmarketshare
previouslyheldbytheCSPVIimportsfromChinaandtookadditionalmarketsharefromthe
domesticindustry.240BeforetheCSPVIIordersbecameeffectiveinFebruary2015,imports
fromadditionalcountriesenteredtheU.S.market.241Bytheendof2015,importshadalmost
doubledtheirlevelfrom2014,andimportscontinuedtogrowinto2016.242
Asdiscussedearlier,thesixlargestfirmsproducingCSPVcellsandCSPVmodulesin
ChinaincreasedtheirglobalCSPVcellandCSPVmodulecapacitywithoutclosingtheircapacity
inChina.243ImportsfromthefourcountrieswhereChineseaffiliatesaddedbothCSPVcelland
CSPVmodulecapacity(Korea,Malaysia,Thailand,andVietnam)increasedtheirshareof

234
19U.S.C.2252(b)(1)(B).
235
CSPVII,USITCPub.4519at33;CSPVI,USITCPub.4360at2526,2829;ConfidentialCSPVI
Views,EDISDoc.618919,file1215365at3637,43.
236
CSPVI,USITCPub.4360at2829.
237
CSPVI,USITCPub.4360at29;ConfidentialCSPVIViews,EDISDoc.618919,file1215365
at43.
238
77FedReg.73107(Dec.7,2012);77Fed.Reg.73018(Dec.7,2012).
239
CSPVII,USITCPub.4519at34.
240
CSPVII,USITCPub.4519at3839&nn.2223;ConfidentialCSPVIIViews,EDISDoc.618909,
file1215370at5455&nn.2223(indicatingthatthoseimportsfromChinaandTaiwanincreasedtheir
shareoftheU.S.marketfrom***percentin2011to***percentin2012and***percentin2013
whereasimportsfromothersources,whichtheCommissionnotedwereprimarilyofproductsfrom
ChinathatbecamesubjecttotheCSPVIorders,fellfrom***percentin2011to***percentin2012
and***percentin2013).
241
CR/PRatTableIV3,TableC1b.
242
CR/PRatTableIV3,TableC1b.
243
CR/PRatTableIV17,TableIV18.

44


apparentU.S.consumptionfrom***percentin2012to***percentin2016.Muchofthis
increaseoccurredbetween2015and2016,astheircollectiveshareoftheU.S.marketmore
thandoubledfrom***percentin2015to***percentin2016justaftertheCSPVIIorders
wentintoeffectinFebruary2015.244
Althoughthecompositionofimportschangedbetween2012and2016,importsfrom
ChinamaintainedasubstantialpresenceintheU.S.marketthroughoutthePOI,despitethe
existenceoftwosetsofantidumpingandcountervailingdutyorders.245Consistentwiththe
largeandattractivenatureoftheU.S.marketandthelargeandgrowingsizeofthe
exportorientedcollectiveforeignindustries,importsofCSPVproductsincreasedboth
absolutelyandrelativetodomesticproductionineachyearsince2012,reachingrecordhighsin
2016.246Asindicatedabove,theseimportswerehighlysubstitutableforU.S.manufactured
CSPVproductsandgenerallywerelowerpriced.247
Duringthisperiodofsubstantialandgrowingvolumesoflowpricedimports,pricesfor
allfivepricingproductsdeclinedbetweenJanuary2012andDecember2016,withpricesof
importedCSPVproductsdeclining45.7to51.0percentandpricesofU.S.manufactured
productsdeclining48.5to73.2percent.248Accordingtoindustryreports,pricesofCSPVcells
andCSPVmodulesfellby60.4percentand58.5percent,respectivelyfrom2012to2016.249
Thedomesticindustryreportedhavingtoreducepricesand/orrollbackannouncedprice
increasestocompetewithimportedCSPVproducts.250Ofthe103respondingpurchasers,38
reportedthatU.S.producershadreducedpricesoftheirCSPVproductstocompetewith

244
CR/PRatTableIV3,TableC1b.
245
CR/PRatTableIV4.Somerespondentsfocusedontrendsinimportsfromindividual
countries,arguing,forexample,thatthatimportsfromChinawerenotasubstantialcauseofserious
injurybecauseimportsfromChinadeclinedattheendofthePOI.See,e.g.,GovernmentofChinas
PosthearingInjuryStatementat6;CCCMEsPrehearingInjuryBriefat2,717,3233;Governmentof
TaiwansPrehearingInjuryBriefat810;VietnameseRespondentsPrehearingInjuryBriefat311.By
focusingseparatelyontheirownexportstotheUnitedStates,theserespondentsoverlooktheglobal
natureofsafeguardinvestigations.Moreover,unlikeanumberofotherrespondentcountries,China,
Taiwan,andVietnamdonothaveanFTAwiththeUnitedStateswithasafeguardexclusionprovision,
andthereforethereisnobasisfortheCommissiontolookatimportsfromanyofthesecountries
separately.
246
Importsincreasedabsolutelyfrom2.2millionkWin2012to3.1millionkWin2013,
4.6millionkWin2014,8.4millionkWin2015,and12.8millionkWin2016.CR/PRatTableII2,
TableIV3,TableC1b.Asaratiotodomesticproduction,importsincreasedfrom733.9percentin2012
to948.4percentin2013,1,141.0percentin2014,1,593.5percentin2015,and2,276.2percentin2016.
CR/PRatTableII2,TableIV3,TableC1b.
247
CR/PRatTableV12toTableV16;CR/PRatFigureV10toFigureV12;CRatV45;PR
atV26.
248
CR/PRatTableV17.
249
CRatV46;PRatV27;CR/PRatFigureV13.
250
CRatV46;PRatV28(notingthatthreedomesticproducersestimatedtotallostrevenuesof
approximately$140millionsince2012).

45


lowerpricedimports,and44ofthemdidnotknowwhetherU.S.producershadreducedtheir
pricestocompetewithlowerpricedimports.251
Pricesdeclinedsubstantiallyin2012,butstabilizedsomewhatafterimportsfromChina
becamesubjecttoantidumpingandcountervailingdutyordersinDecember2012,additional
investigationsonimportsfromChinaandTaiwanwerecommencedattheendof2013,and
importsgrewataslowerpacethanapparentU.S.consumptionbetween2013and2014.As
importsfromadditionalsourcesenteredtheU.S.marketandrapidlyincreasedtohigher
volumes,however,thedomesticindustryspricessteadilyfellthroughout2016.252Several
purchasersalsoreportedsteeperpricereductionsin2016,253asthedomesticindustrysshare
ofthemarketfelltoitslowestlevel.254

251
CRatV51(notingthatpurchasersestimatedthatdomesticproducersreducedprices
anywherefrom3to70percent,averaging31percent).
252
CRatV46;PRatV27.Thedeclineinpricesbetweenthefourthquarterof2015andthe
fourthquarterof2016wereusuallytwiceaslargeasthepricedeclinesbetweenthefirstquarterof
2015andthefirstquarterof2016accordingtothepricingdatasubmittedinthisinvestigation.Derived
fromCR/PRatTableV11toTableV16(indicatingpricedeclinesfromthefirstquarterof2015tothe
firstquarterof2016of10.1percentforimportedpricingproduct2,9.2percentforU.S.manufactured
pricingproduct3,14.7percentforimportedpricingproduct3,12.6percentforimportedproduct4,
11.0percentforU.S.manufacturedpricingproduct5,and11.6percentforimportedpricingproduct5
comparedtopricedeclinesfromthefourthquarterof2016tothefourthquarterof2016of
19.8percentforimportedpricingproduct2,18.3percentforU.S.manufacturedpricingproduct3,
30.6percentforimportedpricingproduct3,26.4percentforimportedproduct4,31.7percentfor
U.S.manufacturedpricingproduct5,and22.1percentforimportedpricingproduct5).Accordingto
industryreports,pricesofcellsandmodulesdeclinedby34.4percentand38.1percentrespectively,
fromthefirstquarterof2016tothefourthquarterof2016.CRatV46atn.50;PRatV27atn.50;
CR/PRatFigureV13.
253
CR/PRatTablesV12toV16,V18;FigureV10toFigureV12.Accordingtoseveralindustry
sources,averageinstalledpricesforphotovoltaicsysteminstallationsdeclinedsteadilyinallthree
ongridmarketsegmentsduringthePOI.Accordingtooneindustryreport,themedianinstalledpriceof
aphotovoltaicsystem(includingthinfilm)fellbetween24.1percent(residentialsystem)and43.6
percent(nonresidentialsystemgreaterthan500kW)from2012to2015.CR/PRatFigureV4.
Accordingtoanotherindustryreport,U.S.photovoltaicsystempricingfellbyalmost20percentfrom
thefourthquarterof2015tothefourthquarterof2016.Thisreportattributedthesteepdeclinein
photovoltaicsystempricesduring2016tolargedecreasesinmodulepricescombinedwithsubstantial
declinesinhardwarecosts.CRatV13;PRatV8.FormostofthePOI,decliningsystempriceslargely
reflectedfallingnonmodulecostsasmodulepricesremainedrelativelystablefrom2013to2015.In
residentialphotovoltaicsystems,modulecostsfell9percentwhilenonmodulecostsfell27percent
from2012to2015.CR/PRatFigureV5.In2016,however,decliningsystempriceslargelyreflected
fallingmoduleprices.Betweenthefourthquarterof2015andthefourthquarterof2016,module
pricesfellby35.4percent.Declinesinnonmodulecosts(e.g.,inverters,mountinghardware,labor,
design/engineering,permittingfees,overhead,andprofitmargin)rangedfrom6percentforfixedtilt
utilitysystems,13percentforresidentialandnonresidentialsystems,and15percentforsingleaxis
trackingutilitysystems.CRatV14toV15;PRatV9toV10;CR/PRatFiguresV4toV6.
254
CR/PRatTableIV4,TableC1b.

46


Thedomesticindustrysnetsalesfelloverallbetween2012and2016,anditscostof
goodssolddeclinedbyagreateramount.255Thedomesticindustryscostofgoodssoldtonet
salesratiowashigh,nearorexceeding***percentthroughoutthisperiod,decreasingfrom
***percentin2012to***percentin2013,***percentin2014,and***percentin2015,and
increasingto***percentin2016.256Accordingly,thedomesticindustrysfinancialcondition,
whichwasatitsworstatthebeginningofthePOIbeforetheantidumpingandcountervailing
dutyorderswereimposedonimportsfromChinainDecember2012,improvedmarginallyafter
impositionoftheordersandthefilingofnewantidumpingandcountervailingdutycases,but
remainedpooranddeterioratedfurtherin2016,asimportspeakedintermsofvolumeand
marketshareandpricesdroppedanew.257
Consistentwiththehundredsofmillionsofdollarsinnetandoperatinglosses
throughoutthePOI,asignificantnumberofdomesticproducerswereunabletogenerate
adequatecapitaltofinancethemodernizationoftheirdomesticplantsandequipment,anda
significantnumberofthemwereunabletomaintainexistingresearchanddevelopment
expenditurelevels.258Thisinabilitytogenerateadequatecapitalforinvestmentsandresearch
anddevelopmentimpairedthedomesticindustrysabilitytodevelopnextgenerationproducts
inthishighlycapitalintensiveandtechnologicallysophisticatedmarket.259
Additionally,despitetheneedinthisindustrytoincreasecapacityinordertoachieve
economiesofscale,thedomesticindustryscapacityandproductionlevelsdidnotincrease
commensuratelywithdemandgrowth,260anditscapacityutilizationlevelsremainedlowand
droppedattheendofthePOI,261asimportsreachedtheirsummit.262Asubstantialnumberof

255
Thedomesticindustryscostofgoodssoldfellfromaperiodhighof$***in2012toaperiod
lowof$***in2013,increasedto$***in2014and$***in2015,andfellto$***in2016.Itsunitcost
ofgoodssoldfollowedsimilartrendsuntil2015,decliningfrom$***/kWin2012to$***/kWin2013,
increasingto$***/kWin2014butdecliningto$***/kWin2015and$***/kWin2016.CR/PRatTable
C1b.Thedomesticindustrysnetsalesvaluesdeclinedatasomewhatslowerrate,fallingfrom$***in
2012to$***in2013,increasingto$***in2014and$***in2015anddecliningto$***in2016.CR/PR
atTableC1b.
256
CR/PRatTableC1b.
257
Thedomesticindustrysoperatinglossimprovedfrom$***in2012tooperatinglossesof
$***in2013,$***in2014,and$***in2015butdeterioratedtoanoperatinglossof$***in2016.The
domesticindustrysnetlossesimprovedfromanetlossof$***in2012tonetlossesof$***in2013,
$***in2014,and$***in2015anddeterioratedtoanetlossof$***in2016.Thedomesticindustrys
netincomemarginimprovedfromalossof***percentin2012tolossesof***percentin2013,***
percentin2014,and***percentin2015,butdeterioratedtoalossof***percentin2016.CR/PRat
TableC1b.
258
See,e.g.,CR/PRatTableIII2,TableIII25,TableE1;CRatIII55,III57atn.78,III59;PRat
III27toIII28,III29atn.78.
259
SolarWorldsPosthearingInjuryBriefat12;SolarWorldsPrehearingInjuryBriefat9092;
SunivasPrehearingInjuryBriefat6869.
260
CR/PRatTableIII4(CSPVcells),TableIII7(CSPVmodules).
261
CapacityutilizationforCSPVmodulesdeclinedfrom57.9percentin2012to48.9percentin
2013andincreasedto61.4percentin2014and63.4percentin2015,butdeclinedto53.7percentin
(Continued)

47


domesticCSPVcellandCSPVmodulefacilitiesclosedduringthePOI,263resultinginnumerous
layoffsandtheneedfortradeadjustmentassistanceforthehighlytrained,skilledworkers
affectedbytheseclosures.264
Asimportsincreasedrapidlyandthedomesticindustryfacedunderutilizationofits
productionassets,underinvestment,andclosures,thedomesticindustrysimilarlywasunable
totakeadvantageofamarketinwhichapparentU.S.consumptionincreasednearly***infive
years.265ImportsaccountedforagrowingandsubstantialshareoftheU.S.market,increasing
theirshareofapparentU.S.consumptionfrom***percentin2012to***percentin2016.266
Inallbutoneyear(2013/2014)ofthePOI,importsincreasedatagreaterratethanapparent
U.S.consumptionyearoveryear,ensuringtheirdominantpositionintheU.S.marketas
demandsurgedforward.267AlthoughmanyU.S.producersenteredtheU.S.marketseekingto
takeadvantageofthisdemandgrowth,theconsistentinabilityofthedomesticindustryto

(Continued)
2016(thesecondlowestleveloverthePOI).CapacityutilizationforCSPVcellsincreasedfromalowof
***percentin2012to***percentin2013and***percentin2014,whilepricesstabilizedsomewhat
andimportstemporarilygrewatalowerratethanapparentU.S.consumption,butcapacityutilization
declinedto***percentin2015and***percentin2016asadditionalforeignsuppliersenteredtheU.S.
marketinlargevolumes.CR/PRatTableIII4,TableIII7.
262
Whilerespondentsarguethatthedomesticindustrywasunabletosupplyadequatelevelsof
CSPVcellstosustainU.S.CSPVmoduleassemblyoperationsordemandintheU.S.market,whichis
accurate,compareCR/PRatTableIII4(CSPVcellcapacity)withTableIII7(CSPVmodulecapacity)and
TableIV3(apparentU.S.consumption),thevastmajorityofimportsofCSPVproductsduringthePOI
consistedoffinishedCSPVmodulesandnotCSPVcells.CR/PRatTableII4(indicatingthatcells
accountedforadecliningshareoftotalCSPVimports,decliningfrom***percentin2012to***percent
in2016andCSPVmodulesincreasedtheirshareoftotalCSPVimportsfrom***percentin2012to***
percentin2016).CertaindomesticproducersattemptedtoincreaseCSPVcellcapacityduringthePOI,
butatnopointwasthedomesticindustryabletooperateatfullcapacityutilizationforCSPVcells.
CR/PRatTableIII4.
263
Respondentsrepeatedlypointtoopponentsofthecase,butmanyofthesefirmsarenotpart
ofthedomesticindustrymanufacturingCSPVproducts.Moreover,somefirmsthatmanufacturedCSPV
productsduringthePOIdidnotexpressapositiononthisinvestigationbecausetheynolongerexist.
See,e.g.,CR/PRatTableIII2,TableIII3.Additionally,producersaccountingforthevastmajorityof
domesticproductionin2016supportedthiscasepriortoinstitution.CR/PRatTableI2;Sunivas
May12,2017responseatExhibit6;InjuryHearingTr.at81.
264
CR/PRatTableIII2;SunivasPrehearingInjuryBriefat4445;CSPVII,USITCPub.4519at16,
I28toI29.
265
ApparentU.S.consumptionincreasedfrom***kWin2012to***kWin2013,***kWin
2014,***kWin2015,and***kWin2016.CR/PRatTableIV4,TableC1b.
266
CR/PRatTableIV4.
267
Importvolumesincreased***percentbetween2012and2013,***percentfrom
2013/2014,***percentfrom2014/2015,***percentfrom2015/2016,and***percentfrom
2012/2016,whereasapparentU.S.consumptiongrew***percentbetween2012and2013,***percent
from2013/2014,***percentfrom2014/2015,***percentfrom2015/2016,and***percentfrom
2012/2016.CR/PRatTableC1b.

48


competewithlowpricedimportsforcedmanyofthesefirms,aswellasothers,toshutdown
theirfacilities.
AlthoughthedomesticindustryincreaseditsU.S.shipmentsoverthePOI,268thisoverall
increasewasdwarfedbythe***percentgrowthinapparentU.S.consumptionduringthis
period,269meaningthatthedomesticindustrylostmarketsharetotheconsistentlygrowing
lowpricedimports.ThedomesticindustrysshareofapparentU.S.consumptionfellfrom
***percentin2012to***percentin2013,andincreasedto***percentin2014,asprices
stabilizedsomewhatwhileimportstemporarilygrewataslowerpacethanapparentU.S.
consumption.Thedomesticindustrysmarketsharedeclinedanewto***percentin2015and
***percentin2016,asimportspeaked.270Domesticproducersreportedlosingsalesto
lowpricedimportsofCSPVproducts,271andthemajorityofpurchasersreportedthattheyhad
increasedtheirpurchasesofimportedCSPVproducts,mostoftenidentifyinglowerpriceasthe
reasonforincreasingtheirpurchasesofimportedCSPVproducts.272
Consistentwithdeclinesinmanyofthedomesticindustrystradeandfinancial
indicatorsbetween2015and2016,asimportsreachedtheirPOIpinnacle,availableinformation
suggeststhatthedomesticindustrysconditioncontinuedtodeteriorateinto2017,beyondthe
POIforwhichdatawerecollectedinthisinvestigation.TwoadditionalU.S.productionfacilities
closedbyJuly2017.273Thedomesticindustrysunemploymentandunderemploymentalso
worsenedin2017,withSunivasbankruptcyfilingandSolarWorldsissuanceofWARNAct
noticesandadditionallayoffs.274Importersreportedthattheyhadalreadyarrangedfor
substantialvolumesofimportsatthetimetheysubmittedtheirquestionnairedata.Petitioners
assertthatadditionalimportsofCSPVproductssurgedintotheU.S.marketinadvanceofany
globalsafeguardmeasure,leadingtofurtherincreasesininventoriesandmanufacturer
shortages,275althoughthisisdisputedbyrespondents.276

268
ThedomesticindustrysU.S.shipmentsdecreasedfrom***kWin2012to***kWin2013,
increasedto***kWin2014and***kWin2015,anddecreasedto***kWin2016,foranoverall
increaseof***percent.CR/PRatTableC1b.
269
CR/PRatTableIV4,TableC1b.
270
CR/PRatTableIV4,TableC1b.
271
CRatV47;PRatV28(notingthatfourdomesticproducersestimatedtotallostsalesof
approximately950,000kWsince2012).
272
CRatV23;PRatV16.Ofthe104respondingpurchasers,91reportedthatsince2012they
hadpurchasedimportedCSPVproductsinsteadofU.S.manufacturedCSPVproducts.Seventythreeof
thesepurchasersreportedthatimportpriceswerelowerthanU.S.manufacturedCSPVproducts,and33
reportedthatpricewasaprimaryreasonfortheirdecisiontopurchaseimportedCSPVproductsover
productsmanufacturedintheUnitedStates.PurchasersestimatedthatthequantityofimportedCSPV
productsthattheypurchasedinsteadofdomesticCSPVproductsrangedfrom54kWto1.7millionkW,
andtotaled3.4millionkW.CRatV50;PRatV30;CR/PRatTableV19,TableV20.
273
CR/PRatTableIII3.
274
CR/PRatTableIII2;InjuryHearingTr.at36,85,9192,9596,99,23638;EDISDoc.620012.
275
See,e.g.,SunivasPosthearingInjuryBriefatExhibit9at41;Sunpremebagsdealtosupply
150MWofheterojunctionsolarmodulestoTGCMinpvmagazine(Sept.12,2017),EDISDoc.623538
(Continued)

49


Consequently,wefindthatincreasedimportsareasubstantialcauseofseriousinjuryto
thedomesticindustrymanufacturingCSPVproductsbasedonaclearcausallinkbetweenthem.

F. ImportsareanImportantCauseNotLessThanAnyOtherCause

Respondentsassertthatcausesotherthanimportsaremoreimportantandexplainany
injurytothedomesticindustry.277Theyidentifytwosuchcauses:(1)allegedmisstepsbythe
domesticindustryand(2)factorsotherthanimportsthatledtodeclinesindomesticprices.278
Wehaveexaminedthesefactorsbutfindthatrespondentsargumentsarenotsupportedby
thefacts.

1. AllegedMisstepsbytheDomesticIndustry

Respondentspointtoallegedmisstepsbythedomesticindustryintermsofthequality
andtypesofproductstheymanufacture,themarketsegmentstheyserve,andallegeddelivery
andserviceissues.
Turningfirsttotheirproductrelatedarguments,respondentsarguethattechnological
changeisakeycharacteristicofthesolarindustry,meaningthatproducersneedto
manufactureproductsthatconvertsunlightintoelectricitymoreefficientlyovertimeand
continuouslybecomemoreefficientattheindustrialproductionlevel.279By2016,most
CSPVcellswere156.0mm2(6.14inches2)or156.75mm2(6.17inches2),andby2017,power
wattagesforCSPVcellsrangedfrom4wattstomorethan5watts/cell.280Typicalongrid
moduleshave60,28172,282or96CSPVcells,althoughmanufacturerssometimescuttheCSPV
cellsinhalftoyield120or144halfcutCSPVcells.283Ongridmodulestypicallyhaveapower

(Continued)
(Analystsandsolardevelopershavetoldpvmagazinethatmosttier1PVmakershavesoldoutof
productthroughtheendoftheyear,asinstallersandconstructioncontractorshoardPVmodulesin
anticipationoftradeactionbytheTrumpAdministration.;seealsoRemedyHearingTr.at65,6970,
109,380.
276
SEIAPosthearingInjuryBrief,AppendixAat89.
277
Respondentsdonotallegethatdemandconditionsareresponsibleforanyinjurytothe
domesticindustry.Asindicatedearlier,demandforCSPVproductsflourishedduringthePOI,as
evidencedbythetremendousgrowthinapparentU.S.consumptionoverthePOIandfromoneyearto
thenextthroughout2012to2016.CR/PRatTableIV4,TableC1b.Thus,demandconditionswere
favorableandnotinjurious.
278
See,e.g.,SEIAsPrehearingInjuryBriefat70120.
279
See,e.g.,SEIAsPrehearingInjuryBriefat18;SEIAsPosthearingBrief,AppendixA,
Question36.
280
CRatI15;PRatI11.
281
Onaverage,60cellCSPVmodulesweighbetween33and51poundsandmeasure65inches
longby39incheswideand1.5to2inchesthick.CRatI18;PRatI13.
282
Onaverage,72cellCSPVmodulesweighbetween45and61poundsandmeasure78inches
longby39incheswideand1.5to2inchesthick.CRatI18;PRatI13.
283
CRatI17toI18;PRatI13.

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outputofbetween240wattsand340watts.284ThetwomaintypesofCSPVproductsare
monocrystallineandmulticrystallinesiliconproducts;monocrystallineCSPVproducts,grown
fromasinglecrystal,tendtoconvertsunlightintoelectricitymoreefficientlythan
multicrystallineCSPVproductswithrandomcrystalstructures.285Monocrystallineand
multicrystallinemodulesaremanufacturedinarangeofeverincreasingconversion
efficiencies286andnominalpoweroutputs.287
BothimportedanddomesticCSPVproductswereavailableincell,laminate,andmodule
forms,withmostintheformofmodules.288DuringthePOI,importedandU.S.manufactured
CSPVproductsweresoldacrossarangeofwattagesandconversionefficiencies,andmodules
weresoldin60and72cellforms.289DomesticproducerspioneeredcertainCSPV
technologies,290andtheyhavecontinuedtoinnovate,develop,andmanufactureleadingedge
products.291

284
CRatV1;PRatV1.
285
Conversionefficiencyisthepercentofsunlightthatisconvertedintoelectricity.CRatI19;
PRatI14.
286
Forexample,SolarPros2017modulespecificationsidentifiedmulticrystallinemoduleswith
72ormorecellswithefficienciesof15.2to17.8percentcomparedtoefficienciesof15.5to
21.5percentformonocrystallinemodules.CR/PRatFigureI5;CRatI19;PRatI14;seealsoCR/PRat
FigureI4(indicatingthatthemedianefficiencyofmodulesinstalledinU.S.residentialsystems
increasedfrom15.3percentin2012to16.7percentin2015,andthatthemedianefficiencyof
multicrystallinemodules(theonlytypeforwhichseparatedatawereavailable)installedinresidential
systemsincreasedfrom14.5percentin2012to16.0percentin2015).
287
Poweroutputfor60cellmulticrystallinemodulescommonlyrangesfrom240to290watts,
whereasoutputfor60cellmonocrystallinemodulescommonlyrangesfrom260to320watts;SolarPros
2017modulespecificationsidentifiedanaverageofpoweroutputof319wattsfor72cell
multicrystallinemodulesand340wattsfor72cellmonocrystallinemodules.CRatI21;PRatI14.
288
CR/PRatTableII4(importedforms),TableIII11(U.S.manufacturedforms).
289
CR/PRatTableV11;CRatI19toI21;PRatI13toI16.Thesamewastrueduringthe
periodsexaminedduringtheantidumpingandcountervailingdutyinvestigationswhichoverlappedwith
thePOIhere.Productsofparticularwattagesorcellcountswerenotlimitedtoasinglesegmentofthe
U.S.market.CSPVI,USITCPub.4360at2728,3132;CSPVII,USITCPub.4519at3537,4142,47.
290
See,e.g.,InjuryHearingTr.at8990,9498,103,108109,114116,143,220223.
291
See,e.g.,CR/PRatTableIII2,TableIII6;CRatIII9toIII17,III22;PRatIII5toIII10;
SolarWorldsPosthearingInjuryBriefat1011;InjuryHearingTr.at88,90(Stein);SolarWorlds
PrehearingInjuryBriefat5255;SunivasPosthearingInjuryBriefat78,Exhibit9at4.Forexample,
SolarWorldwasoneoftheearliestproducersofmonocrystallineproductsandthefirstproducerof
monocrystallinePERCproducts,andpetitionersobservethatthemarketnowisstronglymovingto
monocrystallinePERCproducts,whereSolarWorldisarecognizedleader.SolarWorldsPosthearing
InjuryBriefat9,10,Exhibit1,sectionIat1,sectionIIat9,Exhibit9;InjuryHearingTr.at22021(Stein),
222(Card).SolarWorldalsodevelopedtheptypePERCbifacialcellin2015,thenextlevelofinnovation
thatincreasesenergyyieldatthesystemlevelandhasagreaterimpactonthecostofthedelivered
energy.SolarWorldincreasedthepowerofits60cellmodulesbyapproximately10wattsperyearfrom
240wattsin2011to300wattscurrently.SolarWorldalsodevelopedorpatentedseveralcell
(Continued)

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Inanattempttodifferentiateitselffromlargevolumesoflowpricedimports,
SolarWorldreportsthatitshiftedfromproducingmulticrystallineproductstohigherend,more
efficientmonocrystallineproducts.SolarWorldquicklyencounteredcompetitionfrom
lowerpricedimportedmonocrystallineproductsaswell.292PetitionersreportthatU.S.
importersnotonlyquicklymovedupthevaluechainfrommulticrystallinetomonocrystalline
productsbutalsonowofferbifacialandhybridproductsaswell.293
SomerespondentsarguedthatcertainCSPVproductswereonlyavailablefromforeign
suppliers,suchasmonocrystallinentypeinterdigitatedbackcontact(IBC)products
(Sunpower),ntypetechnologywithbackcontactsolarcellswithdoublesidecellstructure
(LGE),orcommercialscalemulticrystallinemoduleswithrearsidepassivatedcells(HanwhaQ),
anddidnotcompetewithproductsmanufacturedbythedomesticindustry.294Whilecertain
foreignproducersmayproduceCSPVproductsthatareuniqueorunavailablefromother
sources,295availableevidenceindicatesthattheseproductsaccountedforonlyasmallshareof
theU.S.marketforCSPVproductsandthattherewasmoreoverlapbetweenU.S.andimported
specializedCSPVproductsthanacknowledgedbyrespondents.Asof2016,ntype

(Continued)
innovationstoincreasemodulepowerusingthesamematerials,resultinginsubstantialcostreductions,
including***.SolarWorldwasamongthefirstmanufacturerstoimplementstatisticalprocesscontrolto
ensurehigherproductqualityandimproveproductionyields,therebyreducingcosts.SolarWorlds
PosthearingInjuryBriefatExhibit1,sectionIat12.SolarWorldreportsthatitalsowasthefirstto
marketwithanumberofotherinnovationsintendedtoenhanceproductreliability.SolarWorlds
PosthearingInjuryBriefatExhibit1,sectionIat34,Exhibit10;InjuryHearingTr.at106.Sunivaalso
identifiedanumberofinnovationsthatthefirmmadethroughoutitshistoryandthetechnology
changesitimplementedduringthePOItoremaincompetitive.SunivasPosthearingInjuryBriefat
Exhibit9atQuestion6.
292
SolarWorldsPrehearingInjuryBriefat53.SolarWorldreportedthatlowpricedimports
compelleditto***.See,e.g.,CR/PRatTableIII2.
293
SolarWorldsPrehearingInjuryBriefat5455.Bifacialcellsconvertsunlightthathitsboththe
frontandbackoftheCSPVcellintoelectricity.WhereasmostCSPVcellshaveametalizedbacklayer,
bifacialcellsallowlightthroughtothebacksideoftheCSPVcell.TheyoftenincorporateeitherPERCor
heterojunctiontechnologies.Whenincorporatedintomodules,theyuseatransparentbacksheetor
rearglasslayertoallowsunlighttopassthroughtotherearoftheCSPVcell.Hybrid(heterojunction)
cellsincludethinlayersofphotosensitivesemiconductormaterials(typicallyamorphoussilicon)ontop
ofamonocrystallinewafer.CR/PRatFigureI16;CRatI46toI49;PRatI34toI37.
294
See,e.g.,SunpowersPrehearingInjuryBriefat35,1920;HanwhaAmericasPrehearing
InjuryBriefat1015,1819;KOPIAsInjuryPrehearingBriefat1923.
295
Severalpurchasersandoneimporterreportedthatcertaintypesofproductswereonlyor
primarilyavailablefromnonU.S.sources.Forexample,severalpurchasersstatedthatthehigher
efficiencymodulesaremanufacturedprimarilyinAsiaandarenotavailablefromanyU.S.producers.Six
purchasersreportedthatmulticrystallinePERCCSPVproductsareprimarilyonlyavailableinTaiwan,
Korea,Japan,China,andMalaysia.TwopurchasersstatedthatntypemonocrystallineCSPVproducts
areonlyavailablefromLGElectronicsinKorea.CRatV21;PRatV15.Threeimportersandone
purchaserreportedthatinterdigitatedbackcontactsolarCSPVproductsarenotmanufacturedinthe
UnitedStatesandarenotinterchangeablewithfrontcontactCSPVproducts.CRatV24;PRatV16.

52


monocrystallinecellsaccountedforlessthan5percentofglobalCSPVcellproduction,296and
therewerearelativelysmallnumberofmanufacturersoftheseproducts,includingLG,
Panasonic,SunPower,andYingli.297Moreover,contrarytorespondentsassertion,therewas
domesticproductionofntypemonocrystallineCSPVproductsintheUnitedStatesduringthe
POI.298Indeed,despitetheclosuresofnumerousdomesticproducersandtheinabilityofa
numberofdomesticproducerstogenerateadequatecapitaltofinancefacilityexpansionsor
upgradesorresearchanddevelopmenteffortsdiscussedearlier,thedomesticindustrysupplied
awidevarietyofmonocrystallineandmulticrystallineproductsthatoverlappedwithimported
CSPVproducts,includingCSPVproductswith2,3,4,and5busbars,299PERCproducts(including
***),300frameless(glassglass)modules,301heterojunctioncells,302bifacialproducts,303and

296
WhereasmostmonocrystallineCSPVwafersareptypewaferswherethesiliconisdoped
withboron,ntypewafersaremanufacturedbydopingthesiliconwithphosphoroustocreatea
negativeelectricalorientation.Inthecellproductionprocess,apositivelayerisaddedtocreatethep/n
junction.Thesentypecellscanbemoreexpensivetomanufacture,buttheybenefitfromhigher
conversionefficienciesandnolightinduceddegradation,andtheycanbemanufacturedfromwafers
thatarelesspure.CRatI29,I43toI44;PRatI21,I32toI33.
297
CRatI44;PRatI32;CR/PRatFigureI16.
298
MissionSolaropeneditsntypemonocrystallinephotovoltaiccellproductionlinein2014,
***,andclosedtheCSPVcellproductionlineinSeptember2016***.CRatIII9toIII10;PRatIII5to
III6.
299
Manymanufacturersareincreasingthenumberofthebusbars(thewidermetalstripsthat
carryelectricityfromthethinmetalstripsonthesolarcellstothejunctionbox)inCSPVcellstoyield
higherefficienciesandgreaterpoweroutput.Threebusbarcellsaccountedforslightlymorethanhalf
theglobalmarketin2016,downfrommorethan80percentin2014.Fourormorebusbarcells
accountedformorethan40percentofthemarketin2016andareforecasttoaccountforcloseto
60percentoftheglobalmarketin2017.Fivebusbarcellsaccountedforlessthan10percentofthe
globalmarketin2016,butarealsoforecasttogainmarketsharein2017.CRatI49toI50;PRatI36.
300
PERCcellsincorporateanadditionalreardielectriclayerthatreflectslightthatdidnot
generateelectricityasitinitiallypassedthroughtheCSPVcellbackintotheCSPVcell,providingan
additionalopportunityfortheCSPVcelltoabsorbthislight.PERCcellshaveahigherefficiencyand
improvedperformancecomparedtootherCSPVcellsincertainconditions,suchaslowlightandhigh
heatconditions.PERCandrelatedtechnologiesaccountedformorethan10percentoftheglobal
marketin2016,andtheirproduction(particularlyofmonocrystallinePERC)isexpectedtosignificantly
increaseinthenextfewyears,withoneestimateprojectingmorethan15GWofglobalPERC
productionin2017.SolarWorldwasthefirstcompanytocommercializePERCproduction,withSunrise
Global,HanwhaQCells,andRECalsostartingcommercialproductionrelativelyearly.Amongmodule
supplierslistedbyTaiyangNews,SolarWorldhasthehighestmonocrystallinePERCproductionefficiency
(at21.6percent),followedbyTrina(21.12percent)andTainergyandTalesun(21.1percent),thougha
numberofsuppliershaveonlyslightlylowerefficiencies.Trinahasthehighestmulticrystalline
productionefficiencyamongmodulesupplierslistedbyTaiyangNews(19.86percent),followedby
HTSAAE(19.8percent),andAstronergyandSuntech(19.7percent).CRatI44toI46;PRatI33toI34.
301
Somephotovoltaicmodulesdonotuseaframe,whichreducescosts.Thesetypicallyusea
glassastherearlayertoensuremechanicalstability.Framelessmodulesaccountforlessthan5percent
oftheglobalmarket.CRatI51;PRatI38.

53


hybridCSPVproducts.304EvenHanwhaQconcedesthatitsmulticrystallinemoduleswithrear
sidepassivatedcellsaresimilartoPERCtechnology.305Additionally,thepricingdatareflect
thatthedomesticindustryandimportersofCSPVproductsgenerallyreportedsalesofCSPV
productswithinsimilarefficiencyandwattageranges.306Moreover,despitetheexistenceof
somevariationsinproductofferingsbetweenimportsandU.S.manufacturedCSPVproducts,

(Continued)
302
Heterojunctioncells,whichincludeheterojunctionwithintrinsicthinlayer(HIT),addthin
layersofphotosensitivesemiconductormaterials(typicallyamorphoussilicon)ontopofa
monocrystallinewafer.Theseadditionallayersincreasetheabsorptionofsunlight,andtheoverall
efficienciesoftheCSPVcells.Theyalsoperformbetterinhotclimatesthantypicalmonocrystalline
cells.Theyaremoreexpensivetoproduceandaredifficulttoscaleuptocommercialproduction,
however,soonlyafewcompaniescurrentlymanufacturethistechnology.Panasonicwasthefirstlarge
scaleproducerofheterojunctioncellsgloballyandheldmanyofthekeypatentsrelatedto
heterojunctiontechnologyuntiltheyexpiredin2010.Othercompanieswithproductionof
heterojunctioncellsincludeBenQSolar,Ecosollifer,Hevel,Kaneka,Sunpreme,andTesla.Solartech
Universalassemblesmodulesfromheterojunctioncells.MeyerBurgeralsooffersaturnkeyproduction
lineforheterojunctioncells.Heterojunctioncellsaccountforlessthan5percentoftheglobalmarket.
CRatI47toI48;PRatI35.
303
Asindicatedearlier,bifacialcellsconvertsunlightthathitsboththefrontandbackofthe
CSPVcellintoelectricity,andtheyoftenincorporateeitherthePERCorheterojunctiontechnologies
discussedabove.Bifacialcellsincreaseenergyproduction,butarealsomoreexpensivetomanufacture.
Theextenttowhichenergyproductionincreasesdependsinpartonthecharacteristicsofthesurface
belowtheinstalledmodules.Asofearly2017,bifacialmoduleswerecommerciallyavailableintheU.S.
marketfromabouteightcompanies,includingLG,LumosSolar,MissionSolar,PrismSolar,Silfab,
SolarWorld,Sunpreme,andYingliSolar.Despitetherelativelylimitednumberofcurrentsuppliers,***.
Globally,bifacialmodulesaccountedfor1to2percentoftheglobalmodulemarketin2015butthe
marketsharewasprojectedtogrowinthenextfiveyears.CR/PRatFigureI16;CRatI47toI49;PRat
I35toI36.
304
See,e.g.,CRatIII9toIII17,III22;PRatIII5toIII11;CR/PRatTableII5(imported
technologies),TableIII2,TableIII6(U.S.manufacturedtechnologies).AmongthelargerU.S.importers,
***,whichaccountedfor***percentoftotalCSPVproductimports,respectively,reportedimportsof
monocrystallineandmulticrystallineCSPVproducts.***,whichaccountedfor***percentoftotalU.S.
CSPVproductimportsalsoreportedmonocrystallineandmulticrystallineCSPVproductsaswellas
hybridCSPVproducts.***,whichaccountedfor***percentoftotalCSPVproductimports,reported
importsofmonocrystallineandmulticrystallineaswellasPERCCSPVproducts.CRatII16;PRatII14.
305
HanwhaAmericasPrehearingInjuryBriefat1011.
306
CR/PRatTableV11;CRatV33;PRatV22.OnMay1,2014,theU.S.DepartmentofJustice
indictedmembersofChinasPeoplesLiberationArmyforunauthorizedaccesstoSolarWorlds
computernetwork.Theindictmentincludedallegationsofcorporateespionageandtheftofintellectual
property.InjuryHearingTr.at23435(Brightbill);seealso,e.g.,SunivasPosthearingRemedyBriefat
2527,Exhibit12;SolarWorldsPosthearingRemedyBriefat3,4,Exhibit51,SectionXVII;
https://www.justice.gov/iso/opa/resources/5122014519132358461949.pdf.

54


allCSPVproductsconvertsunlightintoelectricity,andCSPVproductsmadefromdifferent
technologiescompetewitheachotheronthebasisofelectricaloutputandcost.307
AsfurtherevidencethatthedomesticindustrysuppliedqualityproductsduringthePOI,
SolarWorldreportedthatitwasthefirsttooffera25yearwarranty,a30yearwarranty,anda
20yearworkmanshipwarranty,whichitwasabletodogiventhatitswarrantyratewasfar
lowerthanmanyotherproducers.308MostU.S.producers,importers,andpurchasersreported
thatU.S.producedCSPVproductswereinterchangeablewithimportedCSPVproducts.309
Additionally,independentresearchfirmEuPDResearchrankedSolarWorldasthemost
purchasedbrandbyU.S.installersandthe***recommendedbrandbyU.S.installers.310
Furthermore,mostpurchasersreportedthatnodomesticorforeignsupplierhadfailedinits
attempttoqualifyproductorhadlostitsapprovedstatussince2012.311
Respondentsalsoarguethatdomesticproducerswerenotbankableforlargescale
commercialandutilitypurchasesandlackedTier1statusontheBloombergBNEFTier1
list.312Althoughtheyacknowledgethattheindustryhasnostandarddefinitionofbankability,313
respondentscontendthatitincludesfactorssuchascreditworthinessandperformanceofthe
productovertimeandmayvaryfromprojecttoprojectorcustomertocustomer.314Intheir

307
Respondentsargumentsareinconsistentwiththeirstatements,discussedbelow,that
competitionoccursbetweenCSPVproductsandotherconventionalorrenewablesourcesofelectricity
(suchasnaturalgasandthinfilm).
308
SolarWorldsPosthearingInjuryBriefat67,Exhibit1,sectionIat23,sectionIISunivas
PosthearingInjuryBriefatExhibit9at5;InjuryHearingTr.at106107.Sunivareportedthatitswarranty
claimratewasbelow0.05percent.InjuryHearingTr.at103.
309
CR/PRatTableV8.
310
SolarWorldsPosthearingInjuryBriefatExhibit1,sectionIIat58;InjuryHearingTr.at107.
311
Nineteenof95respondingpurchasersreportedthatadomesticorforeignsupplierhadfailed
initsattempttoqualifyproductorhadlostitsapprovedstatussince2012forreasonssuchascustomer
service,financialstrength,brokencommitments,cellcracks,useofthinnerframe,qualitycontrol,
bankability,failedaudit,efficiency,deliveryrates,andpreferlocalmanufacturer.Threepurchasers
statedthatbothSolarWorldandYinglihadlosttheirapprovedstatusduetofinancialdistress.
CRatV22;PRatV15.
312
SunPowersPosthearingInjuryBriefatAppendixatviiviii;SEIAsPosthearingInjuryBrief,
AppendixA,Question30;SEIAsPrehearingInjuryBriefat72;HanwhaAmericasPrehearingInjuryBrief
at3941;CCCMEsPosthearingInjuryBriefat10.
313
Ataminimum,bankabilityencompassesboththefinancialviabilityofasupplierandthe
productsperformancereliability,especiallyintheCSPVindustrywheremanufacturersprovide
warrantiesof25yearsorlongerontheirproducts;bankabilityalsoallowsinstallingfirmstoapplyfor
nonrecourseloansfortheirsolardevelopmentprojects.IntheCSPVIinvestigations,oneU.S.producer
reportedthatproducersinChinawereseenasmorebankablebecauseofeaseofaccesstocreditfrom
stateownedbanks,lowriskofbankruptcy,andabilitytofulfillwarranties.See,e.g.,CSPVI,USITC
Pub.4360at11n.84,2728.
314
Morespecifically,respondentsarguethatSunivafailedtoqualifyasaTier1supplier,which
precludedthefirmfromsupplyingmajorutilityprojects,anda$676millionjudgmentagainst
SolarWorldsGermanparentforbreachofitscontractwithHemlockSemiconductorunderfourtakeor
(Continued)

55


questionnaireresponses,however,purchasersdidnotidentifybankabilityasoneoftheir
topthreepurchasingfactors,315andonlythreeof56respondingimportersindicatedthat
developers,installers,andprojectownerschosemodulesupplierswithhighbankabilitythatare
listedasTier1suppliers.316EvenBloombergcautionsbanksandmoduleproducersagainst
relyingheavilyonitslist.317Moreover,SolarWorld(***)qualifiedasaBloombergTier1
supplierin2014,2015,allof2016,andthroughFebruary2017;318itssubsequentlossof
bankabilityprovidesaddedconfirmationoftheseriousinjurysubstantiallycausedbyincreased
imports.319
Respondentsalsoallegethatdomesticproducersfocusedtheirbusinessmodelsonthe
higherprofitresidentialandcommercialsegmentsoftheU.S.marketanduntilrecentlydidnot
seektocompeteforlowermargin,highervolumeutilitysales(thebulkofwhichweregreater
than20MWprojectsin2016),eventhoughutilitieswerethefastestgrowingsegmentthat
accountedforthelargestshareofthemarket.320Respondentsalsoreportbeingunawareof
anydomesticproducerthatisabletoprovidetherequiredcombinationofproducttypeand

(Continued)
paylongtermsupplyagreementsforpolysiliconharmsSolarWorldsfinancialreputationandbankability
amongpotentialpurchasers.SunPowersPosthearingInjuryBriefatAppendixatviiviii;SEIAs
PosthearingInjuryBrief,AppendixA,Question30,Question43;SEIAsPrehearingInjuryBriefat72,
9192,Exhibit86;HanwhaAmericasPrehearingInjuryBriefat3,3941,4447;CCCMEsPosthearing
InjuryBriefat10(citingInjuryHearingTr.at263(Lamon));8minutenergyRenewablesPrehearingInjury
Submissionat2021.
315
Purchasersreportedprice(81firms),quality/performance(77firms),andavailability
(42firms)asimportantpurchasingfactors,withbankabilityadistantfourth(15firms).CR/PRat
TableV4.
316
CRatV25;PRatV17.
317
SolarWorldsPosthearingInjuryBriefat8;SunivasPosthearingInjuryBriefat6,Exhibit9at
Question15.
318
Indeed,duringCSPVI,respondentsevenacknowledgedthatthemajorU.S.producerswere
bankable.CSPVI,USITCPub.4360at28.
319
SolarWorldsPosthearingInjuryBriefat2,78,Exhibit1sectionIIat910;InjuryHearingTr.
at144(Stein)(alsoexplainingthattheHemlockSemiconductorjudgmentinvolvesasubsidiaryof
SolarWorldsparentandhasnothingtodowithSolarWorldAmericas.).AccordingtoSuniva,toqualify
forTier1status,aproducerwouldneedtodemonstratethatithadsuppliedmodulestoatleastsix
differentprojectsthatwerefinancedbynonrecoursedebtfromsixdifferentbanksintheprecedingtwo
years.Sunivareportedthattheunrelentingpressureoflowpricedimportsforceditoutoftheutility
segmentandnecessitatedthatthefirmshiftitsfocustoprojectsthatdidnotrelyonsuchnonrecourse
loanfunding,whichimplicatedthefirmsabilitytoachieveTier1status.SunivasPosthearingInjury
BriefatExhibit9atQuestion15.
320
SEIAsPrehearingInjuryBriefat1923;HanwhaAmericasPrehearingInjuryBriefat78,
3341andExhibit26;SEIAsPosthearingInjuryBriefat67(citingInjuryHearingTr.at16364(Card),325
(Grace),AppendixAat126127,Question13;8minutenergyRenewablesPosthearingSubmissionat27.

56


demonstratedproductperformancedemandedbyutilities.321ThevastmajorityofCSPV
modulessoldintheU.S.marketareconnectedtotheelectricitygrid.322Asdiscussedearlierin
theseViews,therearethreebroadlydefinedgridconnectedmarketsegmentsresidential,323
commercial,324andutility325althoughthesegmentsoverlapsomewhat.326Since2009the
firstyearoftheperiodexaminedintheCSPVIantidumpingandcountervailingduty
investigationstherehasbeenashiftinthedistributionofsalesamongthethreemarket
segments.In2009,thecommercialsegmentaccountedforthelargestshareofthemarket,
followedbytheresidentialandutilitiessegments,327whereasthroughoutthe2012to2016POI

321
SunPowersPosthearingInjuryBriefatAppendixatxviiixix;KOPIAsPosthearingInjuryBrief
atExhibit2;8minutenergyRenewablesPosthearingInjurySubmissionat1213,Exhibit17;Injury
HearingTr.at325.
322
CRatV1;PRatV1;InjuryHearingTr.at18586(Card,Messer).
323
Intheresidentialsegment,CSPVsystemsareinstalledatindividualhomes,typicallyonthe
rooforsometimesmountedontheground.Thesesystemsmayuseacentralinverterthatconnectsto
multiplemodulesoramicroinverterattachedtoeachmoduletoconvertdirectcurrenttothe
alternatingcurrentusedinthegrid.Homeownersuseenergyfromthegridwhensolarelectricity
generatedbytheirresidentialsystemisinsufficienttomeetdemandandoftenfeedenergybackintothe
gridwhenthesystemgeneratesmorethanthehomeuses.CRatI33;PRatI25.Manyinstallersof
residentialsystemsofferfinancingoptionstothecustomers,andsomealsooffercustomerstheoption
toleaseorpurchasethepowerfromthesystem(knownasthirdpartyownership)insteadofbuyingthe
system.CRatI39toI40;PRatI29toI30.
324
Nonresidentialsystemsareinstalledatcommercial,industrial,government,andsimilar
buildingsandsites.Theyfunctionsimilarlytoresidentialinstallations,providingelectricitytomeeton
siteneeds,pullingadditionalelectricityfromthegridwhenneeded,andfeedingexcesselectricityback
intothegridwhennotneeded.CRatI34toI35;PRatI26.Manycommercialinstallersofferfinancing
andthirdpartyownershipoptionstocustomers.CRatI40;PRatI30.
325
Utilitysystemsprovideelectricitydirectlytothegridinsteadofusingtheelectricityonsite.
Thesesystemsaregenerallygroundmountedandtendtousecentralinvertersratherthan
microinverters.Thesesystemsmayutilizefixedtilt,singleaxistracking(panelsrotatetofollowthe
eastwestmovementofthesun)ordualaxistrackingthatalsorotatestofollowthenorthsouth
movementofthesunduringtheyear).Between2012and2015,72percentofinstalledsystemslarger
than5MWusedtracking,withmostusingsingleaxistracking.Priorto2012,mostU.S.utility
installationsinvolved600volts,buthighervoltage(1,000volt)systemsbecameincreasinglycommon
between2012and2016,andbytheendofthisperiod,1,500voltsystemswereintroducedintheU.S.
market.Thesehighervoltagesystemsusefewerbalanceofsystemcomponents,requireless
installationtime,reduceelectricitylosses,andleadtohigherinverterefficiencies,resultinginlower
energycosts.CRatI35toI36;PRatI27.
326
Forexample,manynonresidentialinstallersalsoinstallresidentialCSPVsystems,andwhat
someconsidertobealargecommercialinstallationmightqualifyasautilityinstallationtoothers.See,
e.g.,CRatI34,I39;PRatI24,I29.
327
CSPVI,USITCPub.4360at29n.258,FigureII1(identifyingshipmentstothecommercial
segmentof241,520GWin2009comparedto195,391GWfortheresidentialsegment,and30,407GW
fortheutilitysegment).

57


intheinstantsafeguardinvestigation,utilitieswerethelargestsegmentoftheU.S.market,328
followedbytheresidentialandcommercialsegments.329Allthreeongridsegments
experiencedconsiderablegrowthinboththenumberofinstallationsandthetotalwattageof
installationprojectsduringthePOI.330
DuringthePOI,thedomesticindustryandimporterseachsoldCSPVproductsintheU.S.
markettodistributors,331residentialandcommercialinstallers,andtheutilitysegment.332
ImportedandU.S.manufacturedCSPVproductsalsoweresoldinsimilarchannelsof
distributiontooverlappingsegmentsofthemarket.333Installationsizevariesbysegment,but
thesizeofinstallationsgenerallyhasgrownovertimeineachsegment.334Theinstallersinthe
residential335andcommercialsegments336aremorefragmentedthantheprojectdevelopers

328
In2016,10.6GWofphotovoltaicproductswasinstalledintheutilitysegment(includingthin
film),comparedto2.6GWintheresidentialsegment,and1.6GWinthecommercialsegment.CR
atI39;PRatI29;CR/PRatFigureV1.
329
CR/PRatFigureV1.
330
Residentialinstallationsincreasedby423percentbetween2012and2016,andutility
installationsincreasedby488percent.CRatV1toV2;PRatV1toV2;CR/PRatFigureV1.
331
DistributorstypicallysellCSPVproductsintotheresidentialandcommercialmarket,including
toinstallers,althoughSunivareportedthatsomeofitssalestodistributorsservedtheutilitysegment.
CRatI37atnn.99,100;PRatI29atnn.99,100.
332
CRatI37toI38;CR/PRatTableI1;PRatI28.DomesticallyproducedCSPVcellsare
typicallyconsumedtoproducesolarmodulesbyU.S.producers,althoughaminoramountweresoldto
firmsthatfabricatemodulesorpanels.CR/PRatTableI1.
333
CR/PRatTableI1;CRatI15;PRatI11.
334
AccordingtotheU.S.EnergyInformationAdministration(U.S.EIA),theaveragesizeofa
residentialphotovoltaicsystem(includingthinfilm)is5kW,whereascommercialinstallationsaverage
200kW,andutilityprojectsaredefinedasthosehavingacapacityof1MWandabove.CRatV2n.7;
PRatV1n.7.AccordingtoNREL,themediansizeofresidentialinstallationsincreasedfrom5.5kWin
2012to6.1kWin2015;themediansizeofnonresidentialinstallations500kWorlesswas31kWin
2015butmaybesubstantiallylarger,withNREL(whichusesadifferentdefinitionofutilitysystemsthan
theU.S.EIA)reportingamediansizeof1.1GWforsystems500kWorgreater.Between2012and2016,
themediansizeofutilityprojectswas4.9MWandthemeansizewas17.15MW.CRatI33toI35;PR
atI24toI27.AccordingtotheU.S.EIA,theaverageutilityprojectincreasedfrom10MWin2014to
morethan17MWin2016,andaccordingtorespondentSEIA,82percentofutilityinstallationsin2016
weregreaterthan20MW,and13percentwerelessthan10MW.CRatV3atn.10;PRatV2atn.10.
335
Accordingtoonesurvey,themedianvolumeinstalledbyaresidentialinstallerin2016was
500kW.In2015,therewereseveralthousandresidentialsolarinstallers,mostofwhichwererelatively
smallfirms,butseverallargerfirmsoperatedinmultiplestates,withthetopthreeinstallersaccounting
for48percentofU.S.residentialinstallationsinthesecondquarterof2016.CRatI39;PRatI29.By
comparison,in2012,thereweremorethan2,000activeresidentialinstallersintheU.S.market,with
thetopsixfirmscollectivelyaccountingforlessthanonethirdoftheU.S.market.CSPVII,USITCPub.
4519atII5.
336
In2015,therewereover1,000commercialinstallers,manyofwhichalsoinstalledresidential
systems.Themajorityofthemweresmall,withonesurveyreportingmedianinstallationsof285kWfor
commercialinstallersin2016.Thetopthreecommercialinstallersaccountedforabout26percentof
(Continued)

58


andtheengineering,procurement,andconstruction(EPC)firmsintheutilitysegment.337The
utilitysegmentisacutelypricesensitive,ofteninvolvingabiddingprocessbywhichproject
developersorEPCfirmssubmitbids,andoncethecontracthasbeenawarded,theproject
developerorEPCentersintoasupplyagreementwithamanufacturertosourcetheCSPV
modules.338Utilitybidsofteninvolvepricerenegotiationsthroughouttheproject.339
Althoughthevastmajorityofthedomesticindustrysshipmentswenttoresidentialand
commercialinstallersthroughoutthePOI,340SolarWorldandSunivaeachprovidedinformation
indicatingthattheycompetedforandshippedtotheutilitysegmentofthemarket.SolarWorld
reportedthatitcurrentlyiscapableofsupplyingmodulesforprojectsupto***,andthatithas
soldupto***ofmodulesforasingleprojectduringthePOI.341Sunivareportedservicingthe
smallutilitymarketduringthePOI.342SolarWorldprovidedalistof***projectsfortheutility
segmenttotaling***thatitbidonduringtheperiod,ofwhichitwon***projectstotaling***.
SolarWorldalsosuppliedanadditional***ofmodulestocustomersforutilityprojectsthrough
supplyagreementswithvariouscompanies.343Sunivaprovidedalistof***winningbidsinthe
utilitysegment,whichtotaled***duringthePOI.344Thus,thedomesticindustrysoldortried
tosellCSPVproductstoutilitiesthroughoutthePOIinadditiontotheresidentialand
commercialsegments,butwasfrequentlyunabletowinlargebidsinthissegment.Moreover,
thedomesticindustrylostmarketsharetoimportsregardlessofthesegment.345

(Continued)
theU.S.commercialmarketin2015,whereasthetopfivefirmsaccountedforlessthan25percentof
installationsbywattagein2012.CRatI40toI41;PRatI29toI31;CSPVII,USITCPub.4519atII5.
337
Developersofutilityprojectsincludefirmswhoseprimarybusinessisprojectdevelopment;
firmsthatproduceequipment(e.g.,modules)anddevelopprojects;unregulatedentitiesrelatedto
majorutilitycompanies;otherindependentpowerproducersthatprimarilyproduceelectricityforsale
inthewholesalemarket;utilities;andotherfirms.ProjectdevelopersmayperformEPCservices,or
largecontractorsoftenhandletheseservices.Thetopnineutilityprojectdevelopersin2016accounted
foracombined70percentoftheutilitymarketin2016,andthetopnineEPCfirmsaccountedfor69
percentofthemarket.CRatI41;PRatI30.Bycomparison,thetopfiveutilityprojectdevelopers
accountedfor59percentofU.S.projectscompletedin2012.CSPVII,USITCPub.4519atII5toII6.
338
CRatV3toV4;PRatV2toV3.
339
Forexample,NRG,oneofthelargestindependentpowerproducersintheUnitedStates
whoseprojectscanreach200MWinsize,reportedthatitspecifiesthedesignofamodulerequiredfor
autilityprojectthreeyearsinadvanceofconstruction,solicitsrequestsforproposalsapproximately
12monthsfromconstruction,andmakesitsfinalmoduleselectionnolaterthan6monthspriortothe
startofconstruction.CRatV4atn.15;PRatV4atn.15.
340
CR/PRatTableI1.
341
SolarWorldsPosthearingInjuryBrief,Exhibit1at2326.
342
InjuryHearingTr.at100101,165(Card);SunivasPosthearingInjuryBrief,atExhibit9at12,
AttachmentA.
343
SolarWorldhassupplyagreementswithEPCssuchasDEPCOMandBorrego,andtherefore
haslimitedinformationonspecificbidproposalsforwhichitsmoduleswereused.SolarWorlds
PosthearingInjuryBriefatExhibit1at2223.
344
SunivasPosthearingInjuryBrief,Exhibit9at12,AttachmentA.
345
CR/PRatTableI1,TableC4.

59


Respondentsalsoallegethatthedomesticindustrywaseitherunabletoproduceor
lackedsufficientcapacitytoproduce72cellmodules,which,alongwiththinfilm,theycontend
becamethestandardforutilityinstallationsby20132014.346Residentialandsmaller
commercialinstallationstypicallyuse60cellmodulesduetotheirhigherconversionefficiency
andsmallersize,whereasthemajorityofutilityprojectsnowuse72cellmodulesthatare
typicallylessexpensivetoinstallduetolowerlaborandbalanceofsystemcostsperkW
installed.347Utilitiespreviouslyalsopurchased60cellmodules,including60cell
monocrystallinemodules.348Contrarytorespondentsarguments,therecordshowedthatthe
domesticindustrysoldboth60celland72cellmodulesthroughoutthePOIandlostmarket
sharetoimportsforbothtypesofmodules,accountingfor***percentofU.S.shipmentsof60
cellmodulesand***percentofU.S.shipmentsof72cellmodulesin2016.349SolarWorld
reportedthat***itaddeda72cellmoduleassemblylinetoitsU.S.facilitiesin2016dueto
increasingdemandintheutilitymarket.350Sunivadevoted45percentofitscellmanufacturing
capacityto72cellmodulestoservethecommercialandsmallutilitymarketduringthe
POI.351Moreover,thedomesticindustryconsistentlysuppliedmonocrystallinemodules,which
asnotedaboveconvertsunlightmoreefficientlythanmulticrystallineproducts.352Purchasers
donotgenerallyspecifywhethertheywantmonocrystallineormulticrystallineCSPVproducts,
andsincebothtechnologiesweresoldinallsegmentsoftheU.S.market,pricesof
multicrystallineCSPVproductsaffectedpricesofmonocrystallineproductsandviceversa.353
Thus,theevidenceindicatesthatthedomesticindustryclearlysoughttocompeteinthe
large,concentrated,andpricesensitiveutilitymarket,butthelargevolumeofimportsatlow
anddecliningpricesadverselyimpactedthedomesticindustrysfinancialperformance,making
itdifficultforthedomesticindustrytoincreasecapacitytoascalethatmadeitmore

346
SEIAsPosthearingInjuryBrief,AppendixA,Question13,Question14(acknowledgingthat
Sunivamanufactured72cellmodulesearlybutlackedlargescalecapacityandarguingthatSolarWorld
wasverylatetomanufacturethemandinsteadimportedthemfromitsaffiliates).SEIAarguesthat
SolarWorlddelivered72cellmodulesmadeinThailandforautilityprojectinOregonthatspecifically
requestedU.S.manufacturedmodules.SEIAsPosthearingInjuryBriefat7,Exhibit88.
347
CRatV1;PRatV1.
348
Respondentsacknowledgethat,atthebeginningofthePOI,60cellmodulespredominatedin
allthreesegments,buttheyarguethattheutilitysegmentshiftedto72cellmodulestoreducebalance
ofsystemcosts.See,e.g.,8minutenergyRenewablesPrehearingInjuryBriefat5,1014;CSPVI,USITC
Pub.4360at38.
349
CR/PRatTableC5(marketshare);CR/PRatTableV11(pricingdata).
350
SolarWorldsPosthearingInjuryBriefat10;InjuryHearingTr.at108.
351
InjuryHearingTranscriptat100101,164(Card).
352
CR/PRatTableV11.Indeed,themarketismovingtowardsmonocrystallineandPERC
products.See,e.g.,InjuryHearingTr.at109.
353
See,e.g.,CSPVII,USITCPub.4519at36,41;SolarWorldsPosthearingInjuryBriefat45;
SunivasPrehearingInjuryBriefat4751;SunivasPosthearingInjuryBriefat4,Exhibit9atQuestion4;
InjuryHearingTr.at108109.

60


competitiveinthissegment,evenifitmanagedtodevelopandevenpioneerinnovative
productsthatutilitiesandotherssought.
Respondentsalsoarguedthatthedomesticindustryhaddeliveryandserviceissuesor
failedtocompeteforcertainsales.354Petitionersrespondedtotheseallegations,oftenwith
detailedexplanations.355Theevidencesimplydoesnotsupportthesortofwidespread
problemsallegedbyrespondents.356
Thus,therecorddoesnotsupportrespondentscontentionsthatthedomesticindustry
wasunabletoprovidequalityproducts,failedtoservecertainsegmentsofthemarket,or
sufferedwidespreaddeliveryandserviceissues.

2. FactorsOtherThanImportsThatAllegedlyLedtoPriceDeclines

Respondentsarguedthatfactorsotherthanimports,suchasdeclininggovernment
incentiveprograms,decliningpolysiliconrawmaterialcosts,andtheneedtomeetgridparity
withothersourcesofelectricity,explainanydeclinesinpricesofCSPVproductsandthe
conditionofthedomesticindustry.
Wedonotfindthatchangesinincentiveprogramsexplainthedomesticindustrys
condition,althoughwerecognizethatchangesintheavailabilityandscopeofFederal,state,
andlocalgovernmentincentivesandregulationscontinuetoaffectthepriceofanddemandfor

354
SEIAsPosthearingInjuryBrief,AppendixAat114120,Question30,Question31,
Question33.SEIAsPrehearingInjuryBriefat72,8290(allegingqualityissueswithSunivasproducts
anddeliverydelays).RespondentsarguethatSolarWorld***,andtheyciteinstanceswhereSolarWorld
suppliedimportedinsteadofU.S.products,supplied***,***,orrecalledover1.5millionsolarpanel
systems.SEIAsPrehearingInjuryBriefat9195;SEIAsPosthearingInjuryBriefat910.
355
Forexample,SolarWorldreportsthatmuchofthedeliverydelaysdiscussedbyNEXTrackerat
thehearingresultedfromNEXTrackers***,anyallegedproductspecificationissueswithNEXTracker
resultedfromNEXTrackers***,andcontrarytoNEXTrackerstestimony,NEXTrackernevernotified
SolarWorldthatithadremovedSolarWorldasanapprovedvendor,NEXTrackerswebsitestilllists
SolarWorldasanapprovedvendor,andSolarWorldcontinuestosupplyNEXTrackerprojects.
SolarWorldsPosthearingInjuryBriefatExhibit1,sectionIIat8,1013,Exhibits1216.SolarWorldalso
provideddocumentationrespondingtoallegationsregardingtransactionswithDEPCOM,CaliforniaSolar
System,Borrego,andSunRun.SolarWorldsPosthearingInjuryBrief,Exhibit1,sectionIIat1420,
Exhibits1725;seealsoSunivasPosthearingInjuryBriefat56;InjuryHearingTr.at107.
356
Forexample,SunrunreportedthatbothSolarWorldandSunivarefusedtoparticipateinthe
SunrunVendorQualityManagementProgram,therebypreventingSunrunfromapprovingthemfor
systemsfinancedbyinvestors.SolarWorldreportedthatitchosenottoparticipateintheprogram
becauseSunrunrequiredSolarWorldtoreleaseitsbillofmaterial,whichisSolarWorldsintellectual
property.SunivastatedthatitparticipatedinpreliminarystagesofnegotiationwithSunrunbut
determinedthatthetwofirmsweretoofarapartonpriceandthereforeitdidnotmakesensefor
Sunivatospendthemoneytogothroughthequalificationprocess.CRatV22toV23;PRatV15;
InjuryHearingTr.at23940(Messer),241(Card),26972(Fenster).

61


CSPVproducts.357Theseincentivesoffsetthecostofgeneratingsolarorotherrenewable
energy,mandateitsuse,orotherwiseinfluenceitsprice,therebystimulatingdemandfor
renewableenergygeneratedelectricityandassistingdevelopersofsolarpowerandother
renewableenergysourcestoachievesufficienteconomiesofscaletobecomemore
competitivewithconventionalsourcesofelectricity.358Thesemechanismsbenefitsystems
owners,andtypicallyarenotdirectedatanyparticulardomesticorforeignmanufacturerof
CSPVproducts.359Theseincentivesandtheirbenefitsweredesignedtodeclineovertime,with
theexpectationthatthecosttogeneratesolarpoweredelectricitywouldalsofall.360
Althoughsomeprogramshaveexpired,otherscontinue.Mostquestionnaire
respondentsreportedthattheleveloravailabilityofFederalincentiveshaschangedsince2012.
Between2015and2016,U.S.installationsofongridphotovoltaicsystems(whichincludethin
film)increased97percent.Thisgrowth,primarilyintheutilitysegment,wasdrivenbythe
anticipatedDecember2016expirationofthe30percentFederalInvestmentTaxCredit;361

357
CRatV10,V50;PRatV6.Governmentincentivesdesignedtolowerthecostofsolar
projectdevelopmentincludevarioustaxcredits,revenuesfromthesaleofsolarrenewableenergy
certificates,cashgrantsinlieuofcredit,accelerateddepreciation,andloanguarantees,ofwhichtax
creditswerethemostcommonformofFederalincentives.Insomestates,thePublicUtilityRegulatory
PoliciesActof1978,whichrequiresutilitiestopurchaseelectricityfromqualifyingfacilities(renewable
projectsthatmeetsizerequirements)attheutilitysavoidedcost,hasledtothedevelopmentofmore
solarprojectsfortheutilitysegment.Renewableportfoliostandards,awidespreadstateregulatory
measure,mandatethatentitiessupplyingelectricity,suchasutilities,generateorbuyaportionoftheir
retailelectricitysalesfromrenewableenergysources,includingsolarelectricity,therebyincreasing
demandforCSPVproducts.Statesandutilitiesalsoencouragetheinstallationofsolarprojectsthrough
renewableenergyrebates,feedintariffs,ornetmeteringincentives.Renewableenergyrebatesrefund
aportionofthesysteminstallationcoststocustomersthatinstallphotovoltaicsystems,whereasfeed
intariffspaysolarelectricgeneratorsaknownrateforelectricityfedintothegridoveraperiodof15to
20years.Undernetmetering,residentialandcommercialcustomersthatgeneratetheirownsolar
electricityreceivecreditforexcesselectricitythattheyfeedbacktothegrid,bututilitieshavelobbied
againstnetmeteringpoliciesonthebasisthattheyreducethenumberofratepayersthatareneededto
coverthelargecostsoftraditionalpowergenerationandgridmaintenance.CRatV51toV56;PRatV
31toV36.
358
CRatV51toV56;PRatV31toV36;CR/PRatTableV21;CSPVII,USITCPub.4519atII24
toII28.
359
CRatV51;PRatV31.TheAdvancedEnergyManufacturingTaxcreditandtheU.S.
DepartmentofEnergyssection1705LoanGuaranteeprogramweredesignedtoprovidedirectfinancial
assistancetoU.S.manufacturersofU.S.CSPVproductsandotherrenewableenergysources,buthave
expired.TheU.S.DepartmentofEnergysSunShotInitiativecontinuestoassistmanufacturersofsolar
energy,includingCSPVmanufacturers,primarilyinresearchanddevelopmentinitiatives.CR/PRat
TableV21.
360
CRatV52;PRatV31toV33.
361
CRatV2;PRatV2;CR/PRatFigureV1.TheFederalInvestmentTaxCreditprovideda
30percenttaxcreditoncapitalexpendituresfornewsolarphotovoltaicsystemsfortheresidential,
commercial,andutilitysegments.CR/PRatTableV21.Theprogramwasinitiallyscheduledtoexpire
(Continued)

62


insteadofallowingtheprogramtoexpire,Congressextendeditforseveralmoreyears.362
WhenaskedhowchangesinthelevelofFederalincentiveshadchangeddemandfor
CSPVproductssince2012,mostfirmsreportedthatchangestoFederalincentiveshadnot
changeddemandforCSPVproducts;thosethatreportedanincreaseindemandforCSPV
productsidentifiedthelevelofFederalincentivesasthereasonfortheincrease,notingthe
extensionoftheFederalInvestmentTaxCredit.363Questionnairerespondentsalsoreported
thattheU.S.TreasuryDepartmentscashgrantprogramundersection1603oftheRecovery
andReinvestmentTaxActexpiredin2016.364Questionnairerespondentsweredividedon
whethertheleveloravailabilityofstateandlocalincentiveshadchangedsince2012,365buta
pluralityofthemreportedanincreaseinthedemandforCSPVproductsduetotheavailability
ofstateandlocalincentives.366Mostquestionnairerespondentsreportedthattheavailability
oftheseincentiveshasledtoadecreaseinthepriceofsolargeneratedelectricity,andseveral
attributedthedeclineinthepriceofsolargeneratedelectricitytotheincreaseinsupplyof
solargeneratedelectricityinthemarketplace.367Wefindthattheexistenceoftheseincentive
programshasmadeCSPVproductsmorecostcompetitivewithothersourcesofelectricity.
Moreover,anydeclineinincentiveshasnotledtodeclinesinapparentU.S.consumption.
Instead,demandcontinuedtoexperiencerobustgrowththroughoutthePOI,includinginstates
mostaffectedbychangesinincentiveprograms,suchasCalifornia.368Indeed,in2016,solar
powerwasthelargestsourceofnewelectricgeneratingcapacity,accountingfor39percentof
allnewelectricgeneratingcapacityinstalledintheUnitedStates.369

(Continued)
onDecember31,2007,butwasrepeatedlyextended.See,e.g.,USITCPub.4360atTableII4(noting
possibleexpirationsofDecember31,2007andDecember31,2008);USITCPub.4519atTableII10
(notingthatprojectsmustbecommissionedbyendof2015for30percenttaxcredit);CR/PRatTableV
21(notingthatprojectsmustbecommissionedbytheendof2019for30percenttaxcredit,26percent
taxcreditin2020,22percentin2021,andafter2021residentialdropstozerowhilecommercialand
utilitydroptoapermanent10percentandthatprojectscommencedbeforeDecember2021maystill
qualifyfortheInvestmentTaxCreditiftheyareplacedinservicebeforeDecember31,2023).
362
CR/PRatTableV21.
363
Thelargestshareofrespondingproducers,importers,andpurchasersreportednochange
inhowtheavailabilityofFederalgovernmentincentivesaffecteddemandforCSPVproducts,withthe
nextlargestsharereportingthattheavailabilityofFederalgovernmentincentivesincreaseddemand
forCSPVproductssince2012.CR/PRatTableV23;CRatV57;PRatV36.
364
InlieuoftheFederalInvestmentTaxCredit,theTreasuryDepartmentssection1603
programprovidedcashgrantsofupto30percentofeligiblecapitalexpendituresforcommercialsolar
projects.Toqualify,theprojectneededtobeunderconstructionbytheendof2011andcompletedby
theendof2016.CRatV56;PRatV35;CR/PRatTableV21,TableV22.
365
CR/PRatTableV22;CRatV56toV57;PRatV35toV36.
366
CR/PRatTableV23;CRatV57;PRatV36(notingthatU.S.producers,importers,and
purchasersmostoftendescribedstaterenewableportfoliostandardmandatesasamechanismthat
increaseddemandforCSPVproductinstallations).
367
CRatV57toV58;PRatV35toV37.
368
See,e.g.,CRatV54toV60;PRatV34toV38.
369
CR/PRatFigureV2;CRatV11;PRatV6.

63


Wealsoconsideredtheroleofrawmaterialcostsinthepricedeclinesexperienced
duringthePOI.Aswefoundabove,rawmaterialsaccountforthelargestcomponentofthe
totalcostofgoodssoldforbothCSPVcellsandCSPVmodules.370Rawmaterialcostsfor
CSPVmodules,muchofwhichisthecostoftheCSPVcell,accountedfor84.9percentofU.S.
CSPVmoduleproducerstotalcostofgoodssoldin2016,upfrom58.2percentin2012.371Raw
materialcostsforCSPVcellsaccountedfor***percentofU.S.CSPVcellproducerstotalcostof
goodssoldin2016,upfrom***percentin2012.372Polysiliconisakeyrawmaterialusedinthe
productionofthewafersthatareusedtomanufactureCSPVcellsandotherhightech
products.373Historically,polysiliconcostshavebeenvolatile.374DuringthePOI,thepriceof
polysiliconingotsandwafersfluctuatedbutdeclinedoverallby52.6percentforingotsandby
54.5percentforwafers.375Despitedecliningpolysiliconcosts,whichwouldhelpmakeCSPV
productsmorecostcompetitivewithothersourcesofelectricity,declinesinthedomestic
industrysnetsalesvalueskeptpacewithdeclinesinitscosts,leadingtosubstantiallosses
throughoutthePOI.
RespondentsalsopointtotheneedforCSPVproductstoattaingridparitytocompete
withelectricitygeneratedfromothersourcessuchasnaturalgastoexplaindeclinesintheprice
ofCSPVproductsandthedomesticindustryscondition.Apluralityofimportersand
purchasersreportedthatchangesinthepriceofconventionalenergyhavedecreasedtheprice
ofsolargeneratedelectricity.376Inaddition,firmsreportingthatchangesinthepriceofU.S.
conventionalenergyhaveincreaseddemandcitedapositiverelationshipbetweenelectricity
ratesandthedemandforPVsystemsandmodules.377Whileconventionalenergypricesmay
accountforsomeofthedecreaseinthepricesofCSPVproductsinsomeyears,theydonot
explaintheconsistentobservedpricedeclinesoverthe20122016period.378Thepriceof
naturalgasforelectricitygenerationincreasedinthelatterhalfof2012and2013,peakedin
February2014,anddeclinedtoitslowestlevelinMarch2016afterwhichitroseandis

370
CRatV27;PRatV18.
371
CR/PRatV27toV28;PRatV18.
372
CR/PRatV27toV28;PRatV18.
373
CRatV27;PRatV18.
374
In2003,globalsuppliesofpolysiliconwereinadequatetomeetglobaldemandbythe
semiconductorindustryandparticularlytheCSPVindustry,sospotpricesofpolysiliconrosefrom$35/kg
in2003toahighof$500/kgin2008(andcontractpricesrosefrom$25/kgto$85/kginthisperiod).By
2008,globalsupplyexceededglobaldemand,andpolysiliconspotandcontractpricesthenfell
substantiallytoanestimated$35/kgby2012.CSPVI,USITCPub.4360at28.
375
CR/PRatFigureV7.Themajorityofdomesticproducers(9of11)andimporters(32of44)
reportedthatpricesofrawmaterialsforCSPVproductshavedeclinedsince2012.CRatV28;PRat
V19.
376
Incontrast,mostU.S.producersreportedthatchangesinthepriceofU.S.conventional
energyhavenotaffectedthepriceofsolargeneratedelectricitysince2012.CR/PRatTableV27.
377
CRatV62;PRatV41toV42.
378
Asnotedabove,gridparityisbasedonthelevelizedcostofenergywhichduringpeakperiods
ofdemandissetbynaturalgasgeneratedelectricity.

64


projectedtoincrease.ThedomesticpricesofCSPVproducts,ontheotherhand,decreased
throughoutthePOI.Asdiscussedabove,questionnairerespondentspointtolargevolumesof
lowpricedimportsasthereasonforpricedeclines.Indeed,ratherthanchangesinavailability
ofincentiveprograms,changesinrawmaterialcosts,ortheneedtomeetgridparity,foreign
producersownfinancialdisclosuresattributethedeclineinpricesofCSPVproductstoglobal
excesscapacity.379
Weconsequentlyconcludethatthealternativecausescannotindividuallyorcollectively
explaintheseriousinjurytothedomesticindustry,particularlythedecliningmarketshare,low
capacityutilizationlevels,facilityclosures,andabysmalfinancialperformance.Accordingly,we
findthatincreasedimportsareasubstantialcauseofseriousinjurytothedomesticindustry
manufacturingcrystallinesiliconphotovoltaiccells(whetherornotpartiallyorfullyassembled
intootherproducts)thatisnotlessthananyothercause.

V. FindingsRegardingPossibleExclusionofCertainImports
IftheCommissionmakesanaffirmativedeterminationofseriousinjuryorthreat
thereof(orisequallydividedontheissue),thestatuterequirestheCommissiontomakea
numberofadditionalfindings.Therequirementformanyofthesefindingsoriginatesinthe
implementingstatutesforvariousFTAsthattheUnitedStateshasnegotiatedinthelasttwo
decadesorunderstatutoryprovisionsrelatedtocertainpreferentialtradeprograms.380

A. FindingsRegardingNAFTAImports

Undersection311(a)oftheNAFTAImplementationAct,whichimplementsarticle802
oftheNAFTA,iftheCommissionmakesanaffirmativedeterminationorisequallydividedon
thequestionofinjury,theCommissionalsomustfindwhether
(i)importsofthearticlefromaNAFTAcountry,consideredindividually,account
forasubstantialshareoftotalimports;and
(ii)importsofthearticlefromaNAFTAcountry,consideredindividuallyor,in
exceptionalcircumstances,importsfromNAFTAcountriesconsidered

379
SunivasPosthearingInjuryBriefat5,Exhibit2,Exhibit9at1011,Question12;SolarWorlds
PosthearingInjuryBriefatExhibit32.
380
Specifically,theCommissionisrequiredtomakecertainadditionalfindingsunderthe
implementingstatutesforNAFTA(CanadaandMexico),CAFTADR(CostaRica,ElSalvador,Guatemala,
Honduras,Nicaragua,andtheDominicanRepublic),theU.S.AustraliaFreeTradeAgreement,KORUS,
theU.S.ColombiaTradePromotionAgreement,theAgreementbetweentheUnitedStatesofAmerica
andtheHashemiteKingdomofJordanontheEstablishmentofaFreeTradeArea,theU.S.Panama
TradePromotionAgreement,theU.S.PeruFreeTradeAgreement,theU.S.SingaporeFreeTrade
Agreement,andtheU.S./IsraelFreeTradeAgreementorunderstatutoryprovisionsrelatedto
preferentialtradeprograms(CBERAandGSP).See19U.S.C.2112note(Jordan,Israel);19U.S.C.
2253(e)(6)(GSP);19U.S.C.2703(e)(CBERA);19U.S.C.3371(NAFTA);19U.S.C.3805note
(Australia,Colombia,KORUS,Panama,Peru,Singapore);19U.S.C.4101(CAFTADR).

65


collectively,contributeimportantlytotheseriousinjury,orthreatthereof,
causedbyimports.381

Withrespecttothefirstprong,thestatutestatesthatimportsfromaNAFTAcountry
normallyshallnotbeconsideredtoaccountforasubstantialshareoftotalimportsifthat
countryisnotamongthetop5suppliersofthearticlesubjecttotheinvestigation,measuredin
termsofimportshareduringthemostrecentthreeyearperiod.382
Withrespecttothesecondprong(whetherimportsfromNAFTAcountriesindividually
orinexceptionalcircumstances,collectively,contributeimportantlytotheseriousinjuryor
threatofseriousinjury),thestatutedefinescontributeimportantlyasanimportantcause,
butnotnecessarilythemostimportantcause.383Indeterminingwhetherimportshave
contributedimportantlytotheseriousinjuryorthreatthereofcausedbyimports,the
Commissionisdirectedto
considersuchfactorsasthechangeintheimportshareoftheNAFTAcountryor
countries,andthelevelandchangeinthelevelofimportsfromsuchcountryor
countries.ImportsfromaNAFTAcountryorcountriesnormallyshallnotbe
consideredtocontributeimportantlytoseriousinjury,orthethreatthereof,if
thegrowthrateofimportsfromsuchcountryorcountriesduringtheperiodin
whichaninjuriousincreaseinimportsoccurredisappreciablylowerthanthe
growthrateoftotalimportsfromallsourcesoverthesameperiod.384

Inexceptionalcircumstances,importsfromNAFTAcountriesmaybeconsidered
collectivelyindeterminingwhetherNAFTAimportshavecontributedimportantlytotheserious
injuryorthreat.AccordingtoStatementofAdministrativeActionaccompanyingtheNAFTA
ImplementationAct(NAFTASAA),theCommissionislikelytoconsiderimportsfromNAFTA
countriescollectivelywhenimportsfromindividualNAFTAcountriesareeachsmallintermsof
importpenetration,butcollectivelyarefoundtocontributeimportantlytotheseriousinjuryor
threatofseriousinjury.385
AsdiscussedinsectionIIIabove,thisinvestigationincludesseveralpossibledatasources
formeasuringimportsandanyincreaseinimports.ForthereasonsexplainedinsectionIII,
whichweincorporateintothisdiscussion,wereliedprimarilyonthecountryoforigin
methodologythatCanadianrespondentsproposed(theNAFTArulesoforiginforimportsfrom
CanadaandMexicoandforimportsfromallothercountries,thecountrywherethecellwas

381
19U.S.C.3371(a);NAFTAImplementationAct311.
382
19U.S.C.3371(b)(1).
383
19U.S.C.3371(c).
384
Section311(b)(2)oftheNAFTAImplementationAct,19U.S.C.3371(b)(2).
385
NAFTASAA,H.Doc.103159,103rdCong.,1stSess.at565(1993).

66


manufactured,asadjustedtoreflectU.S.cellsassembledintomodulesinaNAFTAcountry)as
thesourceforimportdatainthisinvestigation.386

1. FindingWithRespecttoImportsfromCanada387

Wefindthatimportsofcrystallinesiliconphotovoltaiccells(whetherornotpartiallyor
fullyassembledintootherproducts)fromCanadadonotaccountforasubstantialshareoftotal
importsanddonotcontributeimportantlytotheseriousinjurycausedbytheimports.
Accordingly,wemakeanegativefindingwithrespecttoimportsfromCanada.
Accordingtoadjustedimporterquestionnairedata,theindustryinCanadawasnot
amongthetopfivesuppliersofimportsofCSPVproductsduringthethreemostrecentyears.388

386
See,e.g.,TableII2,TableIV3,TableC1b(implementingthemethodologyandreducingU.S.
importsfromnonNAFTAsourcestoreflectreportedinformationindicatingthattheCSPVcellswere
assembledintomodulesinCanadaorMexico).
387
ChairmanSchmidtleindoesnotjoinsectionV.A.1oftheseViews.Shefindsthatunder
section311(a)oftheNAFTAImplementationAct(19U.S.C.3371(a)),U.S.importsofCSPVproducts
fromCanadaaccountforasubstantialshareoftotalimportsandcontributeimportantlytotheserious
injurycausedbyimports.Accordingly,shemakesanaffirmativefindingwithrespecttoU.S.imports
fromCanada.
Undersection311(a)oftheNAFTAImplementationAct,acountrynormallywillnotbe
consideredtoaccountforasubstantialshareoftotalimportsifitwasnotamongthetopfivesuppliers
ofthesubjectgood.TheStatementofAdministrativeActionaccompanyingtheNAFTAImplementation
Act,however,statesthattheuseofthewordnormallyinthestatutorylanguagerecognizestheneed
forsomeflexibilityinexercisingthisruleandthattheremaybeinstancesinwhichacountrynotmeeting
thisguidelineshouldbeincludedinthesafeguardsaction.AlthoughU.S.importsfromCanadawerenot
amongthetopfivesourcesofimports,theywereamongthetoptensourcesduringthePOI.Moreover,
theabsolutevolumeofU.S.importsfromCanadaincreasedinallbutoneperiodofthePOIand
increasedatverylargeratesofgrowth(U.S.importsfromCanadaincreasedfrom***).CR/PRatTable
II2.TheseratesofgrowthexceedthecorrespondingratesforglobalU.S.importsbetween2012and
2015.Therefore,ChairmanSchmidtleinfindsthatbecausetheseverylargeratesofincreasewarrantthe
useoftheflexibilityenvisionedintheSAA,U.S.importsfromCanadadoaccountforasubstantialshare
oftotalU.S.imports.
AstowhethertheimportsfromtheNAFTAcountrycontributeimportantlytotheserious
injury,ChairmanSchmidtleinfindsthatbecauseofthelargeincreaseintheabsolutevolumeofU.S.
importsfromCanada,theirincreasingU.S.marketsharefromvirtuallyzeroatthebeginningofthePOI
to***percentin2015,andthelargerrateofgrowthoftheseU.S.importsrelativetoglobalU.S.
imports,U.S.importsfromCanada,consideredindividually,docontributeimportantlytotheserious
injurycausedbyU.S.imports.CR/PRatTableC1b.
Finally,ChairmanSchmidtleinjoinsCommissionersBroadbent,Johanson,andWilliamsonin
acknowledgingthatexcludingU.S.importsfromCanadafromanysafeguardmeasuremayresultin
unrestrainedimportsfromCanadaimminentlyincreasingtoharmfullevelsbecauseofthefactors
outlinedinfootnote400,infra.
388
NeitherofthescenarioscontemplatedbytheNAFTASAAaspossiblereasonswhythe
CommissionmightfindthatimportsfromaNAFTAcountryaccountforasubstantialshareoftotal
(Continued)

67


Itwasthetenthlargestsourcein2012and2013,theninthlargestsourcein2014,theseventh
largestsourcein2015,andthetenthlargestsourcein2016.389Consequently,wefindthat
importsofcrystallinesiliconphotovoltaiccells(whetherornotpartiallyorfullyassembledinto
otherproducts)fromCanada,consideredindividually,donotaccountforasubstantialshareof
totalimports.
WealsoexaminedwhetherimportsofCSPVproductsfromCanadaconsidered
individuallycontributeimportantlytotheseriousinjurycausedbyimports.390Importsfrom
Canadaincreasedfrom***kWin2012to***kWin2013,***kWin2014,and***kWin
2015,anddeclinedto***kWin2016.391Asashareoftotalimports,importsfromCanada
accountedfor***percentin2012,***percentin2013,***percentin2014,***percentin
2015,and***percentin2016.392ImportsfromCanadagenerallywereevensmallerasashare
ofapparentU.S.consumption,accountingfor***percentin2012,***percentin2013,***
percentin2014,***percentin2015,and***percentin2016.393Theirrateofincreasewas
***percentfrom20122013,***percentfrom20132014,***percentfrom20142015,and

(Continued)
importseventhoughtheNAFTAcountryisnotoneofthetopfivesuppliersispresentinthis
investigation.SeeNAFTASAA,H.Doc.103159,103rdCong.,1stSess.at565(1993)(indicatingthatit
mightbeappropriatetodosowherethereislittledifferencebetweentheshareofafifthplacesupplier
andthosethatfollowfifthplace,ortherearemanysuppliers,eachaccountingforasubstantialshare).
TheNAFTASAAfurtherprovidesthat,Section312includesasurgeprovisionthatallowsthe
Presidenttoincludethepreviouslyexcludedimportsintheactionifhelaterdeterminesthatasurgein
importsoftheproductfromtheexcludedcountryorcountriesisunderminingtheeffectivenessofthe
action.Id.;19U.S.C.3372(c).
389
CR/PRatTableII2.Basedonofficialimportstatistics,byvalue,importsfromCanadaranked
eleventhin2014and2015andtwelfthin2016.CR/PRatTableC7.Basedonunadjustedimporter
questionnairedata,therewere***importsfromCanada.CR/PRatTableII1.Accordingtoforeign
producerquestionnaireresponses,therewasnoreportedproductionofCSPVcellsinCanadaduringthe
POI.CRatIV19;PRatIV13.
390
Thestatutereferstotheseriousinjury,orthreatthereof,causedbyimports.
19U.S.C.3371(a)(2)).Havingfoundundersection202oftheTradeAct(19U.S.C.2252(b))that
crystallinesiliconphotovoltaiccells(whetherornotpartiallyorfullyassembledintootherproducts)are
beingimportedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofserious
injurytothedomesticindustryproducingcrystallinesiliconphotovoltaiccells(whetherornotpartially
orfullyassembledintootherproducts),welimitourfindingsforNAFTAcountriestowhetherimportsof
thearticlefromeachNAFTAcountrycontributeimportantlytotheseriousinjurycausedbyimports
consistentwiththeCommissionsapproachinpriorinvestigations.See,e.g.,CircularWeldedCarbon
QualityLinePipe,Inv.No.201TA70,USITCPub.3261atI32toI33(Dec.1999).
391
Intermsofvalue,importsfromCanadaincreasedfrom$***in2012to$***in2013,$***in
2014,and$***in2015,anddeclinedto$***in2016.CR/PRatTableII2.
392
Asashareofdomesticproduction,importsfromCanadaaccountedfor***percentin2012,
***percentin2013,***percentin2014,***percentin2015,and***percentin2016.CR/PRatTable
II2.
393
CR/PRatTableIV4.

68


***percentfrom20152016,foranoverallincreaseof***percent.394Althoughtheserates
exceedthecorrespondingratesforglobalimportsbetween2012and2015andtheoverall
increasebetween2012and2016,395Canadasrateofincreaseisafunctionoftheverylowlevel
ofimportsfromCanadain2012.396Moreover,importsfromCanadadeclinedbetween2015
and2016whileglobalimportscontinuedtoincrease.397
UnderthesecondprongforimportsfromNAFTAcountries,thestatutorystandardis
whethertheimportsfromtheNAFTAcountrycontributeimportantlytotheseriousinjury
causedbyimports,whichisalowerstandardthanwhetherglobalimportsareasubstantial
causeofseriousinjury.398DespitethelargergrowthrateforimportsfromCanadarelativeto
globalimports,giventherelativelysmallshareoftotalimportsaccountedforbyimportsfrom
Canada,therelativelysmallchangeintheCanadianindustrysimportshareoverthePOI,and
themoremodestlevelandchangeinthelevelofimportsfromCanada,particularlyrelativeto
totalimportsfromallsourcesoverthePOI,wefindthatimportsfromCanadaconsidered
individuallydonotcontributeimportantlytotheseriousinjurycausedbyimports.399
GiventhatimportsfromCanadastartedthePOIatasmallerbaselinethanotherforeign
suppliersandincreasedoverallduringthePOIataratethatexceededthegrowthratefor
globalimports,werecognizethatifthePresidentweretodeterminetoexcludeimportsfrom
Canadafromanysafeguardmeasure,unrestrainedimportsfromCanadamightincreaseto
harmfullevels.400Inthosecircumstances,however,ifanysuchincreaseweretooccur,the

394
CR/PRatTableC1b.
395
Therateofincreaseforglobalimportswas***percentfrom20122013,***percentfrom
20132014,***percentfrom20142015,and***percentfrom20152016,foranoverallincreaseof
***percent.CR/PRatTableC1b.
396
Globalimports,incontrast,increasedfrom2.2millionkWin2012to3.1millionkWin2013,
4.6millionkWin2014,8.4millionkWin2015,and12.8millionkWin2016.CR/PRatTableII2.
397
CR/PRatTableIV4.
398
Thestatutedefinessubstantialcauseasacausewhichisimportantandnotlessthanany
othercause.19U.S.C.2252(b)(1)(B)(emphasisadded).
399
Wedonotfindexceptionalcircumstancesthatwouldwarrantconsideringwhetherimports
fromCanadaandMexicocollectivelycontributeimportantlytotheseriousinjurycausedbyimports.For
example,althoughimportsfromCanadawererelativelysmallintermsofimportpenetration,imports
fromMexicowerenotsmallintermsofimportpenetration.CR/PRatTableIV4(indicatingthatimports
fromMexicoaccountedfor***percentofapparentU.S.consumptionin2012,***percentin2013,***
percentin2014,***percentin2015,and***percentin2016).CR/PRatTableIV4.
400
FactorsincreasingthelikelihoodofasurgeofimportsintotheU.S.marketfromCanada
includethefollowing:theCSPVmoduleindustryinCanadaincreasedcapacityandproductionbetween
2012and2016;theCanadianindustryshippedanirregularlyincreasingshareofitstotalshipmentsto
theUnitedStates(increasingnearlyfourfoldfrom***percentofitstotalshipmentsin2012to
***percentby2016);theCanadianindustryhadavailablecapacitythroughoutthePOI,withitscapacity
utilizationrangingfromalowof***percentin2012toahighof***percentin2015,andanearlowest
levelof***percentattheendofthePOIin2016);producersinCanada(includingthe***foreign
producer(CanadianSolar))maintaincorporateandotherarmslengthsupplychainrelationshipswith
firmsinseveralothercountries;Canadianproducersandtheirrelatedfirmsexportedgrowingvolumes
(Continued)

69


domesticindustrywouldhaveotheroptionstoconsider,includingtheimportsurgemechanism
of19U.S.C.3372(c)andtheantidumpingand/orcountervailingdutylaws(19U.S.C.1671,
19U.S.C.1673).

2. FindingsWithRespecttoImportsfromMexico

Wefindthatimportsofcrystallinesiliconphotovoltaiccells(whetherornotpartiallyor
fullyassembledintootherproducts)fromMexicoaccountforasubstantialshareoftotal
importsandcontributeimportantlytotheseriousinjurycausedbytheimports.Accordingly,
wemakeanaffirmativefindingwithrespecttoimportsofCSPVproductsfromMexico.
AsdiscussedinsectionIIIabove,forpurposesofthisanalysis,weappliedtheNAFTA
rulesoforiginforimportsfromCanadaandMexico.Accordingtoadjustedimporter
questionnairedata,theindustryinMexicowasamongthetopfiveimportsuppliersof
CSPVproductsduringthethreemostrecentyearsandaccountedforsignificantandrapidly
increasingvolumesofimports,bothbyquantityandvolume.401Itwasthethirdlargestsource
in2012,thesecondlargestsourcein2013,thethirdlargestsourcein2014and2015,andthe
fourthlargestsourcein2016.402Consequently,wefindthatimportsofcrystallinesilicon
photovoltaiccells(whetherornotpartiallyorfullyassembledintootherproducts)from
Mexico,consideredindividually,accountforasubstantialshareoftotalimports.
WealsoexaminedwhetherimportsofCSPVproductsfromMexicoconsidered
individuallycontributeimportantlytotheseriousinjurycausedbyimports.403Importsfrom
Mexicoprogressivelyincreasedeachyearfrom***kWin2012to***kWin2013,***kWin
2014,***kWin2015,and***kWin2016.404Theirrateofincreasewas***percentfrom
20122013,***percentfrom20132014,***percentfrom20142015,and***percentfrom
20152016,foranoverallincreaseof***percent,405whereastherateofincreaseforglobal
importswas***percentfrom20122013,***percentfrom20132014,***percentfrom

(Continued)
ofCSPVproductstotheUnitedStatesoverthePOI;iftheCSPVproductsmanufacturedbyCanadian
producersaffiliatesaresubjecttoaglobalsafeguardmeasure,theindustryinCanadawillhavean
incentivetosupplytheU.S.marketfromitsCanadianoperationsinstead.CR/PRatTableIV10,Table
IV11,TableIV17,TableIV18.
401
CR/PRatTableII2.
402
CR/PRatTableII2.Basedonofficialimportstatistics,byvalue,importsfromMexicoranked
fourthin2014,thirdin2015,andfourthin2016.CR/PRatTableC7.Basedonunadjustedimporter
questionnairedata,therewere***importsfromMexico.CR/PRatTableII1.Thethreeresponding
foreignproducers/exportersofCSPVmodulesinMexicodidnotreportanyproductionofCSPVcells,but
publiclyavailableinformationindicatesthati3Group,aholdingcompany,istheonlymanufacturerof
CSPVcellsinMexico,whichareproducedthroughitssubsidiaries.CRatIV27;PRatIV17.
403
Asexplainedabove,wedonotfindexceptionalcircumstancesthatwarrantconsidering
whetherimportsfromCanadaandMexicocollectivelycontributeimportantlytotheseriousinjury
causedbyimports.
404
Intermsofvalue,importsfromMexicoincreasedfrom$***in2012to$***in2013,$***in
2014,and$***in2015,and$***in2016.CR/PRatTableII2.
405
CR/PRatTableC1b.

70


20142015,and***percentfrom20152016,foranoverallincreaseof***percent.406Thus,
importsfromMexicoandglobalimportsbothincreasedthroughoutthePOI,withimportsfrom
Mexicosometimesincreasingatagreaterratethanglobalimports,andsometimesincreasing
atalowerratethanglobalimports.407Asashareoftotalimports,importsfromMexico
accountedfor***percentin2012,***percentin2013,***percentin2014,***percentin
2015,and***percentin2016.408AsashareofapparentU.S.consumption,importsfrom
Mexicoaccountedfor***percentin2012,***percentin2013,***percentin2014,***
percentin2015,and***percentin2016.409ImportsfromMexicoexceededthedomestic
industrysproductionofCSPVproductsthroughoutthePOI;asaratiotodomesticproduction,
theyaccountedfor***percentin2012,***percentin2013,***percentin2014,***percent
in2015,and***percentin2016.410GiventhesubstantiallevelofimportsfromMexico,
substantialincreasesinthelevelofimportsfromMexicooverthePOI,thesizableshareoftotal
importsaccountedforbyimportsfromMexico,andthelevelofimportsfromMexicorelativeto
domesticproductionofCSPVproducts,wefindthatimportsfromMexicoconsidered
individuallycontributeimportantlytotheseriousinjurycausedbyimports.

B. FindingsWithRespecttoImportsfromKorea,Singapore,
Australia,CAFTADRcountries,Colombia,Jordan,Panama,andPeru

SeveraloftheUnitedStatesFTAscontainsimilarlanguageprovidingthePresidentwith
discretiontoexcludeimportsfromFTApartnersfromanyglobalsafeguardmeasure.Despite
thepermissivenatureoftheexclusionsintheFTAs,thecorrespondingU.S.implementing
statutesmandatethattheCommissionmakeafindingwhetherimportsofthearticlefromthe
FTApartnerareasubstantialcauseofseriousinjuryorthreatthereofandreportitsfindingto
thePresidentatthesametimethatitsubmitsitsreport.411Forimportsfromeachofthese
countries,wethusconsiderwhetherCSPVproductsarebeingimportedinincreasedquantities
(eitheractualorrelativetoproduction);whetherthedomesticindustryproducinganarticle
thatislikeordirectlycompetitivewiththeimportedarticleisseriouslyinjuredorthreatened

406
CR/PRatTableC1b.Globalimportsincreasedfrom2.2millionkWin2012to3.1millionkW
in2013,4.6millionkWin2014,8.4millionkWin2015,and12.8millionkWin2016.CR/PRatTableII2.
407
CR/PRatTableIV4.
408
CR/PRatTableII2.
409
CR/PRatTableIV4.
410
CR/PRatTableII2.
411
See,e.g.,CAFTADRArticle8.6(2)(CostaRica,ElSalvador,Guatemala,Honduras,Nicaragua,
andtheDominicanRepublic);theU.S.AustraliaFreeTradeAgreementArticle9.5;KORUS
Article10.5(1);theU.S.ColombiaTradePromotionAgreementArticle8.6(2);U.S./JordanAgreementon
theEstablishmentofaFreeTradeAreaArticle10.8;U.S./PanamaTradePromotionAgreement
Article8.2(2);theU.S.PeruFreeTradeAgreementArticle8.6(2);andtheU.S./SingaporeFreeTrade
AgreementArticle7.5.See19U.S.C.2112note(Jordan);19U.S.C.3371(NAFTA);19U.S.C.3805
note(Australia,Colombia,KORUS,Panama,Peru,Singapore);19U.S.C.4101(CAFTADR).

71


withseriousinjury;andwhetherthearticleisbeingimportedinsuchincreasedquantitiesasto
beasubstantialcauseofseriousinjuryorthreatofseriousinjurytothedomesticindustry.412

1. FindingsWithRespecttoImportsfromKorea

Forthereasonsdiscussedbelow,wefindthatimportsofcrystallinesiliconphotovoltaic
cells(whetherornotpartiallyorfullyassembledintootherproducts)fromKoreaarea
substantialcauseofthreatofseriousinjury.413Accordingly,wemakeanaffirmativefindingwith
respecttoimportsofCSPVproductsfromKorea.
WithrespecttowhetherimportsofCSPVproductsfromKoreaincreased,theevidence
showsthatimportsfromKoreaprogressivelyincreasedeachyearfrom***kWin2012to***
kWin2013,***kWin2014,and***kWin2015,andreachedaperiodhighof***kWin2016
thatwasmorethan***thelevelin2015.414Theirannualgrowthratewas***percentfrom
20122013,***percentfrom20132014,***percentfrom20142015,and***percentfrom
20152016,foranoverallincreaseof***percent,415whereasglobalimportsgrewby***
percentfrom20122013,***percentfrom20132014,***percentfrom20142015,and***
percentfrom20152016,foranoverallincreaseof***percent.416Thus,importsfromKorea
grewevenfasterthanglobalimportsineveryperiod,exceptfor20122013.417Asaratioto
domesticproduction,importsfromKoreairregularlyincreasedoverthePOI,decliningfrom
***percentin2012to***percentin2013,andincreasingto***percentin2014,***percent
in2015,andaperiodhighof***percentin2016,wellabove***percent.418Basedonthis
information,wefindincreasedimportsfromKorea.
AsdiscussedinmoredetailinsectionIV.Dabove,thedomesticindustrysperformance
indicatorsdeclinedoverthePOI,particularlybetween2015and2016andcontinuedto
deteriorateinto2017despiteexplosivedemandgrowth.Giventheoverallimpairmentinthe
domesticindustrysposition,wenextconsideredwhetherimportsfromKoreaareasubstantial
causeofseriousinjuryorthreat.419ImportsfromKoreaprogressivelyincreasedeachyearfrom

412
See19U.S.C.2252(b)(1)(A).
413
Werecallthatthestatutedefinessubstantialcauseasacausewhichisimportantandnot
lessthananyothercause.19U.S.C.2252(b)(1)(B).
414
Intermsofvalue,importsfromKoreadecreasedfrom$***in2012to$***in2013and
increasedto$***in2014,$***in2015,andaperiodhighof$***in2016.CR/PRatTableII2.
415
CR/PRatTableC1b.
416
CR/PRatTableC1b.Globalimportsincreasedfrom2.2millionkWin2012to3.1millionkW
in2013,4.6millionkWin2014,8.4millionkWin2015,and12.8millionkWin2016.CR/PRatTableII2.
417
CR/PRatTableIV4.
418
CR/PRatTableII2.
419
TherequiredanalysisofimportsfromKoreadiffersinimportantrespectsfromtheanalysis
withrespecttoimportsfromNAFTAcountries.Forinstance,theinjurystandardsdiffer,withatwo
prongedtestforimportsfromNAFTAcountries(importsaccountforasubstantialshareoftotal
importsandcontributeimportantlytotheseriousinjury,orthreatthereof,causedbyimports)anda
singletestforimportsfromKorea(whetherimportsareasubstantialcauseofseriousinjuryorthreat).
(Continued)

72


***kWin2012toaperiodhighof***kWin2016(thatwasmorethan***thelevelin
2015).420ImportsfromKoreagrewevenfasterthanglobalimports,increasingovertheentire
POIby***percentandby***percentfrom20152016alone,421whereasglobalimports
increasedovertheentirePOIby***percentandby***percentfrom20152016.422Imports
fromKoreaalsoincreasedsubstantiallyasaratiotodomesticproduction,increasingoverall
from***percentin2012toaperiodhighof***percentin2016,wellabove***percent.423As
ashareoftotalimports,importsfromKoreaaccountedfor***percentin2012,***percentin
2013,***percentin2014,***percentin2015,and***percentin2016.424Asashareof
apparentU.S.consumption,marketshareforimportsfromKoreawas***percentin2012,***
percentin2013,***percentin2014,***percentin2015,and***percentin2016.425

(Continued)
Moreover,thecontextforouranalysisdiffers.OuranalysisofimportsfromNAFTAcountriesis
intertwinedwithouranalysisofglobalimports.Ifwedetermineundersection201oftheTradeAct
(19U.S.C.2252(b))thatanarticleisbeingimportedinsuchincreasedquantitiesastobeasubstantial
causeofseriousinjurytothedomesticindustryproducinganarticlelikeordirectlycompetitivewiththe
importedarticle,thenthestatutelimitsouranalysisofimportsfromNAFTAcountriestothebasisfor
thatdetermination(i.e.,seriousinjury),aswehavefoundinpriorsafeguardproceedings.See,e.g.,
CircularWeldedCarbonQualityLinePipe,Inv.No.201TA70,USITCPub.3261atI32toI33(Dec.
1999).TheoperativelanguageistherequirementthatimportsfromtheNAFTAcountrycontribute
importantlytotheseriousinjury,orthreatthereof,causedbyimports.19U.S.C.3371(a)(2)
(emphasisadded).Thus,theCommissionanalyzesimportsfromtheNAFTAcountryagainstthe
backdropofitsdeterminationofseriousinjurycausedbyimports.Nosuchlanguageexistsforpurposes
ofanalyzingimportsfromKorea,soif,ashere,theCommissionbaseditsdeterminationwithrespectto
globalimportsonseriousinjury,thestatutedoesnotlimittheanalysisofimportsfromKoreatothe
seriousinjurycontext(asdistinguishedfromthethreatofseriousinjurycontext).19U.S.C.3805note
atsection341.
TheCommissionspointofreferencealsochanges.ToanalyzeimportsfromtheNAFTAcountry,
theCommissionfocusesonwhethertheycontributeimportantlytotheseriousinjury,orthreat
thereof,causedbyimports.19U.S.C.3371(a)(2)(emphasisadded).Thatis,thestatutecontemplates
thattheCommissionwillanalyzetheimportsfromtheNAFTAcountryagainsttheimportsthatthe
Commissiondeterminedcausedtheseriousinjury(orthreatthereof)globalimports.Forimportsfrom
Korea,however,thestatutedoesnotdirecttheCommissiontoexamineimportsfromKoreawithglobal
importsthatcausedtheseriousinjury(orthreatthereof)asareferencepoint.Thestatutesimply
directstheCommissiontofindwhetherimportsoftheKoreanarticleareasubstantialcauseofserious
injuryorthreatthereof.19U.S.C.3805noteatsection341(a).
420
CR/PRatTableII2.
421
CR/PRatTableC1b.
422
CR/PRatTableC1b.Globalimportsincreasedfrom2.2millionkWin2012to3.1millionkW
in2013,4.6millionkWin2014,8.4millionkWin2015,and12.8millionkWin2016.CR/PRatTableII2.
423
CR/PRatTableII2.
424
CR/PRatTableII2.
425
CR/PRatTableIV4.

73


Thus,by2016,importsfromKoreawereamongthelargestsuppliersofCSPVproducts
totheU.S.market,rankingthirdbehindonlyMalaysia426andChina.427ImportsfromChinahad
declinedfrom2015to2016,ashadtheirmarketshare,whereasimportsfromKoreawere
considerablyhigherbothabsolutelyandrelativetoapparentU.S.consumptionanddomestic
productionbetweenthoseyears.428Inrecentyears,therehasbeensignificantinvestmentin
KoreainproductivefacilitiesforCSPVcellsandCSPVmodulesby***.429
Basedonthisevidence,wefindthatimportsfromKoreaareasubstantialcauseof
clearlyimminentthreatofseriousinjurythatisimportantandnotlessthananyothercause,
includingimportsfromMalaysia.430

2. FindingsWithRespecttoImportsfromSingapore

Forthereasonsdiscussedbelow,wefindthatimportsofcrystallinesiliconphotovoltaic
cells(whetherornotpartiallyorfullyassembledintootherproducts)fromSingaporearenota
substantialcauseofseriousinjuryorthreatthereof.Accordingly,wemakeanegativefinding
withrespecttoimportsfromSingapore.

426
ImportsfromMalaysiawerelargerthanimportsfromKoreaby2016,astheyhadbeen
throughoutthePOI.CR/PRatTableII2.WenotethatwhiletheCSPVmodulecapacityandproduction
reportedfortheindustryinMalaysiaexceededthatreportedfortheindustryinKoreain2016,thedata
reportedforKoreaaresignificantlyunderstatedandrepresent***percentofCSPVcellproduction
capacityandonly***percentofCSPVmoduleproductioncapacityinKorea.Thedatareportedforfirms
inMalaysia,bycontrast,accountedforallknownCSPVcellcapacityinMalaysiaand93percentofCSPV
moduleproduction.Compare,e.g.,CR/PRatTableIV43(CSPVcellcapacityinKoreaof***kWin2016
andproductionof***kW),TableIV44(CSPVmodulecapacityinKoreaof***kWin2016and
productionof***kW)withTableIV49(CSPVcellcapacityinMalaysiaof***kWin2016and
productionof***kW),TableIV50(CSPVmodulecapacityinMalaysiaof***kWin2016and
productionof***kW);CRatIV84,IV93;PRatIV48,IV52.Thisindicatesthatproductivecapacityin
KoreaisconsiderablyhigherthanproductivecapacityinMalaysiaandthatcapacityfortheindustryin
KoreaisprojectedtobeevenhigherthancapacityfortheindustryinMalaysiaintheimminentfuture.
CR/PRatTableIV43,TableIV44,TableIV49,TableIV50.ImportsfromKoreagrewatafasterrate
between2015and2016thanimportsfromMalaysia,demonstratingtheattractivenessoftheU.S.
markettoimportsfromKorea.CR/PRatTableC1b(indicatingthatimportsfromKoreaincreasedby
***percentbetween2015and2016whereasimportsfromMalaysiaincreasedby***percent).
Moreover,in2016,thepricingdataindicatethatimportsfromKoreagenerallywerelowerpricedthan
thedomesticindustrysU.S.shipmentsandimportsfromKoreaalsogenerallywerelowerpricedthan
importsfromMalaysia,thelargestsourceofimports.CR/PRatAppendixG.
427
CR/PRatTableII2.
428
CR/PRatTableII2,TableIV4.
429
CR/PRatTableIV17,TableIV18.
430
Inarrivingatthisfinding,wealsotookintoconsiderationourfindingsinsectionIVabove
abouttheotherallegedcausesofanyinjury,includingthelackofevidencesupportingrespondents
arguments.

74


WithrespecttowhetherimportsofCSPVproductsfromSingaporeincreased,the
evidenceshowsthatimportsfromSingaporeincreasedoverallduringthePOIbutfellbetween
2015and2016,decreasingfrom***kWin2012to***kWin2013,increasingto***kWin
2014,***kWin2015,anddecliningto***kWin2016.431Theirannualgrowthratewas
***percentfrom20122013,***percentfrom20132014,***percentfrom20142015,and
***percentfrom20152016,foranoverallincreaseof***percent,432whereasglobalimports
grewby***percentfrom20122013,***percentfrom20132014,***percentfrom2014
2015,and***percentfrom20152016,foranoverallincreaseof***percent.433Althoughthe
overallgrowthrateforimportsfromSingaporewas***tothegrowthrateforglobalimports,
importsfromSingaporestartedfromaconsiderablysmallerbase.434Asaratiotodomestic
production,importsfromSingaporeirregularlyincreasedoverthePOI,decliningfrom
***percentin2012to***percentin2013,andincreasingto***percentin2014,aperiod
highof***percentin2015,anddeclinedto***percentin2016.435
EvenassumingarguendothatimportsfromSingaporeincreasedinsuchquantities,
giventhesignificantoverallimpairmentinthedomesticindustryspositiondiscussedinmore
detailinsectionIV.Dabove,weconsideredwhetherimportsfromSingaporeareasubstantial
causeofseriousinjuryorthreat.ImportsfromSingaporeincreasedoverallfrom***kWin
2012to***kWin2016.436Theiroverallgrowthrate***thegrowthrateforglobalimports,
***.437Asashareoftotalimports,importsfromSingaporewereatthesamelevelattheendof
thePOIasatthebeginningofthePOI,accountingfor***percentin2012,***percentin2013,
***percentin2014,***percentin2015,and***percentin2016.438Asashareofapparent
U.S.consumption,importsfromSingaporealsowereatthesamelevelattheendofthePOIas
atthebeginningofthePOI,withamarketshareof***percentin2012,***percentin2013,
***percentin2014,***percentin2015,and***percentin2016.439
AlthoughthereweresomefluctuationsinthevolumeofimportsfromSingaporeover
thePOI,wedonotfindthatimportsfromSingaporeareasubstantialcauseofseriousinjuryor
threatthereof.TheydidnotincreasetheirshareoftotalimportsortheirshareoftheU.S.
marketoverthePOI.ThedeclineinthevolumeofimportsfromSingaporebetween2015and
2016absolutelyandrelativetodomesticproductionandapparentU.S.consumptionalso
underminesanyclaimofathreatofseriousinjury.Basedonthisevidence,wefindthatimports
fromSingaporearenotasubstantialcauseofseriousinjuryorthreatthereof.

431
CR/PRatTableII2.
432
CR/PRatTableC1b.
433
CR/PRatTableC1b.Globalimportsincreasedfrom2.2millionkWin2012to3.1millionkW
in2013,4.6millionkWin2014,8.4millionkWin2015,and12.8millionkWin2016.CR/PRatTableII2.
434
CR/PRatTableIV4.
435
CR/PRatTableII2.
436
CR/PRatTableII2.
437
CR/PRatTableC1b.
438
CR/PRatTableII2.
439
CR/PRatTableIV4.

75


3. FindingsWithRespecttoImportsfromAustralia,
CAFTADRcountries,Colombia,Jordan,Panama,andPeru

Wefindthatimportsofcrystallinesiliconphotovoltaiccells(whetherornotpartiallyor
fullyassembledintootherproducts)fromAustralia,CAFTADRcountries,Colombia,Jordan,
Panama,andPeru,individually,arenotasubstantialcauseofseriousinjuryorthreatthereof.
Accordingly,wemakeanegativefindingwithrespecttoimportsofCSPVproductsfromeachof
theseFTApartners.
TheCommissionsquestionnairesinthisinvestigationrequestedseparateU.S.import
dataonimportsfromAustralia,CAFTADRcountries,Colombia,Jordan,Panama,andPeru,but
noimporterreportedanyimportsfromanyofthesesourcesduringthePOI.440Theresponses
tothesequestionnairesandotheravailableindustryinformationindicatethatthereisonlyone
knownproducerofCSPVproductsineachofthefollowingcountries:Australia,theDominican
Republic,ElSalvador,Jordan,andPanama.441Itisnotknownwhetherthereareanyproducers
ofCSPVproductsinColombia,Peru,orotherCAFTADRcountries.442Basedonthisinformation,
particularlytheabsenceofanyreportedimportsfromanyoftheseFTApartners,wefindthat
importsofCSPVproductsfromAustralia,CAFTADRcountries,Colombia,Jordan,Panama,and
Peru,individually,arenotasubstantialcauseofseriousinjuryorthreatthereof.

4. FindingsWithRespecttoOtherImports

Incertaincircumstances,thestatuteprovidesthePresidentwithdiscretiontosuspend
thereductionoreliminationofdutiesoncertainimportsofarticlessubjecttoanaffirmative
globalsafeguardaction.ThePresident,however,canonlysuspendthereductionorelimination
ofthedutiesiftheCommissionfindsthattheseriousinjury(orthreatthereof)substantially
causedbyimportsresultsfromthereductionoreliminationofanydutyprovidedunderthat
provision.Thus,thesesortsofprovisionsinvolvetwocomponents:(1)seriousinjuryorthreat
thereofbytheimportsand(2)alinkagebetweentheseriousinjuryorthreatthereofandthe
reductionoreliminationofanydutyprovidedtothoseimports.
ForimportsfromIsrael,theimplementingstatutefortheU.S./IsraelFTApermitsthe
Presidenttosuspendthereductionoreliminationofanydutyprovidedunderanytrade
agreementprovisionenteredintowithIsraelundersection102(b)(1)oftheTradeActwith
respecttoanyarticleandpermitsthePresidenttoproclaimadutyrateforsucharticleifsuch

440
CRatI56;PRatI41.TheCommissionalsosoughtdataforacatchallcategoryofallother
imports,whichmayhaveincludedimportsfromthesecountries.Reportedimportsforallother
countrieswereconsistentlyverysmallduringthePOI.See,e.g.,CR/PRatTableC1b(indicatingno
importsfromallothersourcesin2012and2013,andthattheseimportswere***kWin2014,***kW
in2015,and***kWin2016,equivalenttolessthan***percentofapparentU.S.consumption
throughoutthisperiod).
441
CRatIV141toIV143;PRatIV73toIV74.
442
CRatIV144;PRatIV74toIV75.

76


safeguardactionisproclaimed,443butitprecludesthePresidentfromsuspendingthereduction
oreliminationofanydutyprovidedforunderanytradeagreementwithIsrael

unlesstheCommissioninadditiontomakinganaffirmativedeterminationwith
respecttosucharticledeterminesinthecourseofitsinvestigationthatthe
seriousinjury(orthreatthereof)substantiallycausedbyimportstothedomestic
industryproducingalikeordirectlycompetitivearticleresultsfromthe
reductionoreliminationofanydutyprovidedunderanytradeagreement
provisionenteredintowithIsraelundersection102(b)(1)oftheTradeActof
1974.444

InordertoprovideinformationnecessaryforthePresidenttomakethisdetermination,the
statuterequirestheCommission,intheeventofanaffirmativedeterminationofseriousinjury
orthreatthereof(oranequallydividedCommission),tostateinitsreporttothePresident
whetherandtowhatextentitsfindingsandrecommendationsapplytosuchanarticlewhen
importedfromIsrael.445
LegislationauthorizingcertainU.S.preferentialtradeprogramsfordevelopingcountries
alsorequirestheCommissiontoaddresstheextenttowhichitsfindingsandrecommendations
applytobeneficiarycountriesunderthoseprograms.TheCBERAprovisionsoftheCaribbean
BasinInitiativetradeprogram446providethatinanyreportby{theCommission}tothe
Presidentundersection202(f)ofthe{theTradeAct}regardinganyarticleforwhichdutyfree
treatmenthasbeenproclaimedbythePresidentpursuanttothischapter,theCommissionshall
statewhetherandtowhatextentitsfindingsandrecommendationsapplytosucharticlewhen

443
TheU.S./IsraelFTAprovidesthePresidentwithdiscretionwhethertoexcludeimportsfrom
Israelfromanyglobalsafeguardmeasure.UndertheU.S./IsraelFTA,When,intheviewofthe
importingParty,theimportationofaproductfromtheotherPartyisnotasubstantialcauseofthe
seriousinjuryorthreatthereofreferredtoinparagraph1,theimportingpartymayexcepttheproduct
oftheotherPartyfromanyimportreliefthatmaybeimposedwithrespecttoimportsofthatproduct
fromthirdcountries,takingintoaccounttheobjectiveofachievingbilateralfreetradeasembodiedin
theAgreement,thedomesticlawsandinternationalobligationsoftheParties.Agreementonthe
EstablishmentofaFreeTradeAreabetweentheGovernmentofIsraelandtheGovernmentofthe
UnitedStatesofAmerica,Article5(3)(emphasisadded).
444
19U.S.C.2112noteU.S./IsraelFTAImplementingAct403(d).
445
19U.S.C.2112noteU.S./IsraelFTAImplementingAct403(b).
446
ThelistofCBERAbeneficiarycountrieshasdeclinedovertimeassomeindividualcountries
haveenteredintobilateralfreetradeagreementswiththeUnitedStatesandarenolongereligiblefor
CBERAbenefits.CurrentbeneficiariesincludeAntiguaandBarbuda,Aruba,TheBahamas,Barbados,
Belize,Curaao,Dominica,Grenada,Guyana,Haiti,Jamaica,Montserrat,St.KittsandNevis,St.Lucia,
St.VincentandtheGrenadines,TrinidadandTobago,andtheBritishVirginIslands.19U.S.C.2702;
https://ustr.gov/issueareas/tradedevelopment/preferenceprograms/caribbeanbasininitiativecbi.

77


importedfrombeneficiarycountries.447InordertoassistthePresidentsdecisionwhetherto
suspenddutyfreetreatmentforCBERAimports,incaseswheretheCommissionmakesan
affirmativedeterminationinaglobalsafeguardinvestigationundersection202(b)oftheTrade
Act,theCommissiondetermineswhethertheseriousinjury(orthreatthereof)substantially
causedbyimportstothedomesticindustryproducingalikeordirectlycompetitivearticle
resultsfromthedutyfreetreatmentprovidedbythischapter.448
Inthisinvestigation,theevidenceindicatesthattherehasbeennoreductionor
eliminationofdutiesoneligibleimports.Importedarticlesthatareprovidedforinsubheading
8541.40.60oftheHTSUShavebeenfreeofdutyunderthegeneraldutyratesinceatleast
1987.449Moreover,althoughtheCommissionsquestionnairesinthisinvestigationsought
separatedataforIsraelandCBERAbeneficiariesonimportsandforeignproductionofCSPV
products,wenotethatnoU.S.importersubmittedanydataonimportsofCSPVproductsfrom
thesesources,andnocorrespondingforeignproducerssubmittedanydataonproduction
operationsintheselocations.450Consequently,theseriousinjurysubstantiallycausedby
importstothedomesticindustryproducingalikeordirectlycompetitivearticledoesnotresult
fromthereductionoreliminationofanydutyprovidedforundertheU.S.IsraelFreeTrade

447
19U.S.C.2703(e)(2).AsimilarprovisionrequiredtheCommissiontoreportwhetherthe
seriousinjury(orthreatthereof)substantiallycausedbyimportstothedomesticindustryproducinga
likeordirectlycompetitivearticleresultedfromthedutyfreetreatmentprovidedbytheAndeanTrade
PreferenceAct.19U.S.C.3203(c)(4).Intheabsenceofanypreferencesduetotheexpirationofthe
PresidentsauthoritytoprovidesuchdutyfreetreatmenttoeligiblegoodsundertheAndeanTrade
PreferenceActprogram,theCommissionisnotmakinganysuchdeterminationinthisinvestigation.
448
19U.S.C.2703(e)(4).ThestatutealsorequirestheCommissiontofindwhether,asaresult
ofthedesignationofcertainarticlesaseligiblefordutyfreetreatmentundertheGSPprogram,the
domesticindustryisinjuredorthreatenedwithseriousinjuryasaresultofincreasesinsuchimports.
Section203(e)(6)(B)oftheTradeAct;19U.S.C.2253(e)(6)(B)(Noproclamationprovidingfora
suspension{ofdutyfreetreatmentundertheGSPprogram}maybemadebythePresident,normayany
suchsuspensionberecommendedbytheCommissionundersection2252(e)ofthistitle,unlessthe
Commission,inadditiontomakinganaffirmativedeterminationundersection2252(b)(1)ofthistitle,
determinesinthecourseofitsinvestigationundersection2252(b)ofthistitlethattheseriousinjury,or
threatthereof,substantiallycausedbyimportstothedomesticindustryproducingalikeordirectly
competitivearticleresultsfrom,asthecasemaybe(i)theapplicationofsubheading9802.00.60or
subheading9802.00.80oftheHarmonizedTariffScheduleoftheUnitedStates;or(ii)thedesignationof
thearticleasaneligiblearticleforthepurposesofsubchapterVofthischapter.)
449
CRatI52;PRatI38.
450
CRatI56,IV141;PRatI41,IV73.Asdiscussedabove,reportedimportsforcountriesother
thanCanada,China,Germany,Indonesia,Japan,Korea,Malaysia,Mexico,Philippines,Singapore,
Taiwan,Thailand,andVietnamwereconsistentlyverysmallduringthePOI.See,e.g.,CR/PRatTableC
1b(indicating***importsfromsuchallothersourcesin2012and2013,andthattheseimportswere
***kWin2014,***kWin2015,and***kWin2016,equivalenttolessthan***percentofapparent
U.S.consumptionthroughoutthisperiod).

78


AgreementorfromdutyfreetreatmentprovidedforundertheCBERAprovisionsofthe
CaribbeanBasinInitiativeTradeProgram.451

VI. Conclusion
Fortheforegoingreasons,wedeterminethatcrystallinesiliconphotovoltaiccells
(whetherornotpartiallyorfullyassembledintootherproducts)arebeingimportedintothe
UnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjurytothe
domesticindustryproducinganarticlelikeordirectlycompetitivewiththeimportedarticle.
WefindthatimportsofCSPVproductsfromMexicoaccountforasubstantialshareoftotal
importsandcontributeimportantlytotheseriousinjurycausedbyimports.Wefindthat
importsofCSPVproductsfromCanadadonotaccountforasubstantialshareoftotalimports
anddonotcontributeimportantlytotheseriousinjurycausedbyimports.452Wefindthat
importsofCSPVproductsfromKoreaareasubstantialcauseofthreatofseriousinjury,butthat
importsofCSPVproductsfromAustralia,CAFTADRcountries,Colombia,Jordan,Panama,Peru,
andSingapore,individually,arenotasubstantialcauseofseriousinjuryorthreatthereof.453

451
Forthesamereasons,theseriousinjurysubstantiallycausedbyimportstothedomestic
industryproducingalikeordirectlycompetitivearticledoesnotresultfromanyreductionorelimination
ofanydutyundertheGSPprogram.
452
Asindicatedabove,ChairmanSchmidtleindoesnotjoinsectionV.A.1oftheseViews.She
findsundersection311(a)oftheNAFTAImplementationAct(19U.S.C.3371(a))thatimportsofCSPV
productsfromCanadaaccountforasubstantialshareoftotalimportsandcontributeimportantlytothe
seriousinjurycausedbyimports.
453
Wealsodeterminethattheseriousinjurysubstantiallycausedbyimportstothedomestic
industryproducingalikeordirectlycompetitivearticledoesnotresultfromthereductionorelimination
ofanydutyprovidedforundertheU.S.IsraelFreeTradeAgreementorfromdutyfreetreatment
providedforundertheCBERAprovisionsoftheCaribbeanBasinInitiativeTradeProgramorany
reductionoreliminationofanydutyundertheGSPprogram.

79


VIEWSONREMEDYOFCHAIRMANRHONDAK.SCHMIDTLEIN

I. FindingsandRecommendations

Forthereasonssetforthbelow,Irecommendthefollowingactions,whichIfindwill
addresstheseriousinjurytothedomesticindustryproducingcrystallinesiliconphotovoltaic
cells(whetherornotpartiallyorfullyassembledintootherproducts)(CSPVproducts)andbe
mosteffectiveinfacilitatingtheeffortsofthedomesticindustrytomakeapositiveadjustment
toimportcompetition:

1. ThatthePresidentimposeatariffratequotaonimportsofCSPV
productsincellformforafouryearperiod,asfollows:

a. Year1:atariffof10.0percentadvaloremonimportsofupto0.5gigawatts
andatariffof30.0percentadvaloremonimportsinexcessof0.5gigawatts
b. Year2:atariffof9.5percentadvaloremonimportsofupto0.6gigawatts
andatariffof29.0percentadvaloremonimportsinexcessof0.6gigawatts
c. Year3:atariffof9.0percentadvaloremonimportsofupto0.7gigawatts
andatariffof28.0percentadvaloremonimportsinexcessof0.7gigawatts
d. Year4:atariffof8.5percentadvaloremonimportsofupto0.8gigawatts
andatariffof27.0percentadvaloremonimportsinexcessof0.8gigawatts

2. ThatthePresidentimposeatariffonimportsofCSPVproductsin
moduleformforafouryearperiod.Thetariffwouldbeattherateof
35.0percentadvaloreminthefirstyearofrelief,34.0percentad
valoreminthesecondyearofrelief,33.0percentadvaloreminthe
thirdyearofrelief,and32.0percentadvaloreminthefourthyearof
relief;

3. HavingmadeanaffirmativefindingwithrespecttoimportsofCSPV
productsfromCanadaandMexicoundersection311oftheNAFTA
ImplementationAct,1thatsuchimportsbesubjecttothetariffrate
quotasandadditionaltariffsdescribedabove;

4. Thatthetariffratequotasandtariffsdescribedabovenotapplyto
importsofCSPVproductsfromthefollowingcountrieswithwhichthe
UnitedStateshasfreetradeagreements:Australia,Colombia,Costa
Rica,theDominicanRepublic,ElSalvador,Guatemala,Honduras,
Israel,Jordan,Nicaragua,Panama,Peru,andSingapore;ortoimports

1
19U.S.C.3371(a).

81

ofCSPVproductsfromthebeneficiarycountriesundertheCaribbean
BasinEconomicRecoveryAct;

5. ThatthePresidentinitiateinternationalnegotiationstoaddressthe
underlyingcauseoftheincreaseinimportsofCSPVproductsand
alleviatetheseriousinjurythereof.

II. Introduction

Havingfoundthatincreasedimportsareasubstantialcauseofseriousinjurytothe
domesticindustry,ImustnowrecommendtothePresidentactionthatwilladdresstheserious
injuryandbemosteffectiveinfacilitatingtheeffortsofthedomesticindustrytomakea
positiveadjustmenttoimportcompetition.Indecidingwhatrelieftorecommend,Ihavetaken
intoaccounttheconsiderationssetforthinsection202(e)(5)(B)oftheTradeActof1974,2
including(1)theformandamountofactionthatwill,inmyview,remedytheseriousinjurythat
theCommissionunanimouslyfoundtoexist;(2)commitmentssubmittedbyfirmsinthe
domesticindustryduringthecourseoftheinvestigation;(3)informationavailabletothe
Commissionconcerningtheconditionsofcompetitionindomesticandworldmarkets;and(4)
likelydevelopmentsaffectingsuchconditionsduringtheperiodforwhichactionisbeing
requested.IjoinViceChairmanJohansonandCommissionerWilliamsoninrecommendinga
tariffratequotaonCSPVcellsandatariffonCSPVmodulesforfouryearsandjointheir
pluralityviewsinanumberofsections,asnotedbelow.I,however,donotjoinViceChairman
JohansonandCommissionerWilliamsonintheirrecommendedtariffratesandtariffratequota
volumelevelsbecauseIbelievehighertariffratesandalowerstartingtariffratequotalevelwill
providethedomesticindustrymoreprotectionfromincreasingvolumesoflowpricedimports
ofCSPVproductsandprovideabetteropportunitytorealizegreateroperatingincomeduring
theremedyperiodwhichthedomesticindustrycouldusetoincreasecapacityandachieve
economiesofscale.

III. ConditionsofCompetition

IadoptandincorporatesectionIIIofthepluralityviewsofViceChairmanJohansonand
CommissionerWilliamsonwhichsetsforththedemandandsupplyconditionsofcompetitionin
theCSPVproductsindustry.

IV. CommitmentsSubmittedByFirmsintheDomesticIndustry

IadoptandincorporatesectionIVofthepluralityviewsofViceChairmanJohansonand
CommissionerWilliamsonwhichdiscussesthecommitmentssubmittedbyindividualfirmsin
thedomesticCSPVindustry.

2
19U.S.C.2252(e)(5)(B).

82

V. RecommendedRelief

Iagreewithmuchofmycolleaguesviewsinthepluralityrecommendationregarding
thenatureanddurationoftherecommendedremedy.Asstatedabove,Ialsorecommenda
fouryeartariffratequotaonCSPVcells3andafouryeartariffonCSPVmodules,andtherefore
adoptandincorporatethepluralitysrationaleforusingthisspecificremedyform,whichis
explainedinsectionVofthepluralityviewsofViceChairmanJohansonandCommissioner
Williamson.Idifferfrommycolleaguesastoonlytheappropriatemagnitudeofthespecific
tariffratesandtariffratequotalevels.
Withregardtodeterminingtheappropriatetariffratesandquotalevelsforanytariff
ratequota,likemycolleagues,Ihaveconsideredalloftheinformationobtainedinthis
investigation,includingquestionnaireresponses,hearingtestimony,andthebriefsof
interestedparties,aswellastheresultsofanindustryspecificpartialequilibriumeconomic
modelthatdistinguishedbetweenCSPVcellproductionandCSPVmoduleproduction.Iused
thismodeltoestimatechangesinthedomesticmarketforCSPVproductsandthefinancial
impactofmyremedyrecommendationonthedomesticproducersofcellsandmodules.
Similartomycolleaguesintheplurality,whenformulatingmyremedyrecommendation,I
strivedtobalancetheinterestsofbothintegratedandnonintegrateddomesticproducersas
wellasanyeffectsmyrecommendedremedymayhaveonupstreamanddownstream
domesticindustries.
Basedontheresultsoftheindustryspecificpartialequilibriummodel,my
recommendedremedywillrestrictimportvolumeofCSPVmodulesandincreaseprices
sufficientlyforthedomesticindustrytoincreaseitsoperatingincome,allowingittoinvestin
newcapacityandachievetheeconomiesofscalenecessarytocompetewithimports.Inmy
view,themodelresultsshowthatatariffrateonmodulesthatismoderatelyhigherthanthat
recommendedbythepluralityisnecessaryforthesepurposes.Themodelresultsshowthatan
increaseinthepriceofimportsofCSPVmoduleswillbenefitbothU.S.moduleproducersthat
useimportedcellsandU.S.moduleproducersthatusecellsproducedintheUnitedStates.4
WithregardtomyrecommendedtariffratequotaforCSPVcells,themodelresults
showthatU.S.importsofCSPVcellswillincrease,whichwillbenefitnonintegratedU.S.
moduleproducersthatpresentlyrequireimportedcellstomanufactureCSPVmodulesinthe
UnitedStates.AnyincreaseinimportsofCSPVcells,however,willbeconstrainedbythetariff
ratequotalevelof0.5gigawattsinthefirstyearoftheremedyperiod.However,thislevelis
greaterthantheimportedCSPVcellvolumeinanyyearoftheperiodofinvestigation,including
2016,theyearinwhichimportedcellssurgedintotheU.S.market.Hence,myrecommended

3
InotethatthePresidentmayfinditmoreeffectivetoadministeranytariffratequotawith
eitheratimeallocationforthequota,acountryallocationforthequota,orboth.
4
SeeMemorandumECPP023(October23,2017)andEstimatedEconomicEffectsofthe
RemedyRecommendationofChairmanSchmidtlein,Emailcorrespondence,November6,2017.
IalsoconsideredtheexistingantidumpingandcountervailingdutyordersonCSPVproducts
fromChinaandTaiwanandthatthesemeasuresalreadyprovidesomedegreeofprotectiontothe
domesticindustry.

83

tariffratequotalevelisdesignedtoallownonintegratedmoduleproducerstoobtainimported
cellsaswellasallowforsomegrowthfortheseproducers,especiallygiventhatoveralldemand
forCPSVproductsisexpectedtodeclinein2018from2016levels.TheinquotatariffrateI
recommendisdesignedtoworkinconjunctionwiththetariffsonmodulestoraisepricesinthe
U.S.markettotheoverallbenefitofbothintegratedandnonintegratedmoduleproducers.
Theresultsofthemodelshowthatthesmallincreaseincellpricesshouldnothaveany
significantdetrimentaleffectonnonintegratedmoduleproducersgiventheexpectedincrease
inmoduleprices.
Irecommendthatthesafeguardmeasurebeimposedforfouryearsinordertoafford
thedomesticindustrysufficienttimetomakeapositiveadjustmenttoimportcompetition.I
recognizethatreliefofmorethanthreeyearsindurationwillrequiretheCommissionto
conductamidcoursereviewunder19U.S.C.2254(a)(2).Suchaninvestigationwouldprovide
theCommissionwithanopportunitytoreviewtheprogressoffirmsinthedomesticindustryin
theimplementationofthecommitmentswhichtheysubmittedtotheCommission.Italso
wouldprovidethePresident,afterreceivingtheCommissionsreport,withtheopportunityto
reduceorterminatereliefiftheindustryhasnotmadeadequateeffortstomakeapositive
adjustmenttoimportcompetition.

VI. CountryExclusions

Irecommendthattheabovetariffratequotaandincreasedratesofdutynotapplyto
importsfromthefollowingcountrieswithwhichtheUnitedStateshasfreetradeagreements:
Australia,Colombia,CostaRica,theDominicanRepublic,ElSalvador,Guatemala,Honduras,
Israel,Jordan,Nicaragua,Panama,Peru,andSingapore.Ialsorecommendthatthetariffrate
quotaandincreasedratesofdutynotapplytoimportsfromthebeneficiarycountriesunder
theCaribbeanBasinEconomicRecoveryAct.

VII. RequestsforProductExclusions

Duringtheremedyphaseofthisinvestigation,theCommissionwaspresentedwitha
numberofrequeststoexcludefromanyremedyparticularproductsincludedinthescopeof
theinvestigationastowhichtheCommissionmadeanaffirmativedeterminationintheinjury
phaseoftheproceedings.Thepartiesmakingtheserequestsgenerallycontendedthatthe
productsforwhichtheywererequestingexclusionswerenicheorspecialtyproductseithernot
producedbythedomesticindustryorproducedininsufficientquantitiestosatisfyU.S.
demand.5However,petitionersarguethatmostoftheproductscoveredbytheseexclusion
requestscompetedirectlywithproductsproducedbythedomesticindustry,andthatto

5
SeeKOPIAsPrehearingRemedyBriefat2229;PrehearingRemedyBriefoftheGovernmentof
Koreaat56;BYDsPrehearingRemedyBriefat24;SunPowersPrehearingRemedyBriefat1316;
SunPowersPosthearingRemedyBriefat1015;SolatubesPrehearingRemedyBriefat115;Solatubes
PosthearingRemedyBriefat26;GoalZerosPrehearingRemedyBriefat221;GoalZerosPosthearing
RemedyBriefat19;EnphasesSeptember27,2017CommentsonRemediesat14.

84

excludethemwillundermineanysafeguardremedyanddiscourageU.S.investmentinthese
technologies.6Becausecertainproductexclusionsmayundermineanyimposedremedy,I
declinetorecommendtheexclusionofanyspecificproductsfrommyremedy
recommendation.Inordertodealwithproductexclusionrequeststhatallpartiesagreewould
notundermineanyimposedremedy,Irecommendthataprocedurebeestablishedatthe
OfficeoftheU.S.TradeRepresentativetoallowpartiestorequestspecificproductexclusions.

VIII. ShortandLongTermEffectsoftheRecommendedRemedy

Iagreewithmycolleagues,asexplainedinthepluralitysrecommendation,thatgiven
theprecariouscurrentpositionofthedomesticindustryasaresultoftheseriousinjurycaused
byincreasedimports,thesurvivalofthedomesticindustryrequirestheimmediateimposition
ofstrongimportreliefthatenablesdomesticfirmstocommenceadjustmenteffortsvery
quickly.Intheshortterm,theremedythatIhaverecommendedwillprovidethedomestic
industrysomeprotectionfromimports,andallowamodestincreaseinU.S.prices.
Accordingly,U.S.producerscashflowandoperatingincomewillincrease,givingthemfunds
necessaryforinvestmentsinincreasedcapacityandproduction,aswellasinR&Dand
innovation.Thesurvivalofthedomesticindustrydependsonitsabilitytoinnovateand
improvebothitsproductsanditsproductionprocesses,andtoexpandproductionandcapacity
toachieveeconomiesofscale,soastoenableittocompetewithimportsofCSPVcellsand
modules.
SolarWorldscompanyspecificcommitmentsindicatethatifimportreliefisgranted,it
intendstorampupitsCSPVcellproductiontofullcapacityatitsexistingfacilitiesbyMay2018,
withmoduleproductiontofollowsuit.SolarWorldalsointendstomakelongertermplansfor
investmentstoincreasecapacity,capacityutilization,andcostsavings;spurinnovationand
technologyupgrades;enterintoR&Dpartnerships;andsolidifyandexpanditscustomerbase.7
Sunivasprospectiveactionplanwhichdependsonagreementtoareorganizationplaninits
Chapter11bankruptcyproceedingenvisionsthat,ifgranted,importreliefwouldenableitto
emergefromtheChapter11proceedingand,shortlythereafter,reactivateitsproduction
capacity.Atthesametime,theplanenvisionsthatSunivawouldmovetowardsfullcapacity,
profitability,andtheresumptionofitsR&Defforts,whileinthelongertermseekingto***.8
TheimportreliefIhaverecommendedwillalsoencourageadditionalprivateinvestment
andnewentrantsinthedomesticindustry,includingbothintegratedproducersandnon
integratedmoduleproducers.Asnotedbytheplurality,informationobtainedduringthe
investigationshowsthatanumberofdomesticproducersareplanningorconsideringopening
U.S.CPSVproductionfacilitiesinanticipationofimportrelief,including***,***,***,***,and
***.9

6
SeeSolarWorldsPosthearingRemedyBrief,Exhibit2,at6769;SunivasPosthearingRemedy
Brief,Exhibit5,AttachmentD.
7
SolarWorldsPosthearingRemedyBrief,Exhibit1,atpages513.
8
SunivasPosthearingRemedyBriefatExhibit5,AttachmentB.
9
Seee.g.,SolarWorldsPosthearingRemedyBriefat8andExhibit11;CR/PRatTableD2.

85

Petitionersandrespondentsagreethatthemostrelevantandreliableprojectionsshow
adeclineindemandforCSPVproductsfrom2016levelsin2017and2018,butaresumptionin
growthin2019andafterwards,evenintheeventofanimposedremedywhichresultsinhigher
U.S.prices.10Thus,anyshorttermadverseeffectonU.S.downstreamdemandfromhigher
U.S.pricesasaresultofimportrestrictionsisunlikelytohaveasignificanteffectonthe
recoveryoftheU.S.industryfromtheseriousinjury,oritspositiveadjustmenttoimport
competition.
Inthelongerterm,bytheconclusionoftheremedyperiod,theincreasedcapacityand
productionofdomesticproducers,theirstrengthenedfinancialandworkingcapitalposition,
andtheirimprovedproductsandproductionprocesses,shouldgivethemtheabilitytoachieve
theeconomiesofscalenecessaryforthemcompeteinallsectorsoftheindustry,includingthe
largeprojectsintheutilitysector.Forallthesereasons,Ibelievethatmyrecommended
remedywillenablethedomesticindustrytomakeapositiveadjustmenttoimportcompetition
duringtheremedyperiod,andemergeinagreatlystrengthenedcompetitivepositionoverthe
longterm.

IX. ShortandLongTermEffectsofNotTakingtheRecommendedAction

Iagainagreewithmycolleaguesinthepluralityrecommendationandfindthatinthe
absenceofrelief,theinjurioussurgeofimportswouldlikelycontinue,giventhelargeand
growingexcesscapacityofforeignproducersandtheattractivenessoftheU.S.markettothose
producers.Asaresult,thedomesticindustry,includingbothCSPVcellandmoduleproducers,
wouldlikelyceasetoexistintheshortterm.Thedomesticindustrysufferedoperatinglosses
throughouttheperiodofinvestigation,andthoselosseswouldlikelycontinueandworsenin
theabsenceofrelief,leavingthedomesticindustryunabletoinvestintheinnovationandR&D
necessaryforitslongtermsurvival.Thisindustryrequirescontinualtechnologicaladvances
andefficiencyincreases,necessitatingconstantinnovationaimedatbothimprovingthe
productandtheproductionprocess,allofwhichrequiresubstantialinvestmentsinR&D.The
currentCSPVcellandmoduletechnologyistoasubstantialdegreeaproductofR&Dand
innovationintheUnitedStates,includingbythepetitioners.11ThedisappearanceoftheU.S.

10
SeeSolarWorldsPrehearingRemedyBriefat23;SolarWorldsPosthearingRemedyBriefat
13;TranscriptofRemedyHearingat215(Prusa).
11
See,e.g.,CR/PRatTableIII2,TableIII6;CRatIII9toIII17,III22;PRatIII5toIII9,III11;
SolarWorldsPosthearingInjuryBriefat10;HearingTr.at88,90(Stein);SolarWorldsPrehearingInjury
Briefat52;SunivasPosthearingInjuryBriefat78,Exhibit9at4.Forexample,SolarWorldwasoneof
theearliestproducersofmonocrystallineproductsandthefirstproducerofmonocrystallinePERC
products,andpetitionersobservethatthemarketnowisstronglymovingtomonocrystallinePERC
products,whereSolarWorldisarecognizedleader.SolarWorldsPosthearingInjuryBriefat9,10,
Exhibit1,sectionIat1,sectionIIat9,Exhibit9;TranscriptofInjuryHearingat22021(Stein),222
(Card).SolarWorldalsodevelopedtheptypePERCbifacialcellin2015,thenextlevelofinnovationthat
increasesenergyyieldatthesystemlevelandhasagreaterimpactonthecostofthedeliveredenergy.
SolarWorldsPosthearingInjuryBriefatExhibit1,sectionIat12.Sunivaalsoidentifiedanumberof
innovationsthatthefirmmadethroughoutitshistoryandthetechnologychangesitimplemented
(continued)
86

industryproducingCSPVcellsandmoduleswouldleadtoadeclineinU.S.R&Dandinnovation
inthesolarenergyfield,whichhaseconomicandsocialbenefitsintheUnitedStatesfarbeyond
thebenefitstothespecificfirmsconductingtheR&D.12Indeed,thelossofthedomestic
industry,andtheresultingrelianceofdownstreamindustriesonforeignproducersofCSPV
products,couldhavesignificantlongtermconsequencesforU.S.economicandnational
securityinterests.13

X. OtherStepstoFacilitatetheIndustrysPositiveAdjustmenttoImportCompetition

Inadditiontotheirproposalsforimportrelief,petitionersproposedthatthePresident:
(1)issueanexecutiveorderdirectingallU.S.governmentagenciestorequireuseofU.S.origin
solarcells,14(2)conductastudyofthecyber,electricalgrid,andnationalsecurityrisksofusing
solarpanelsofforeignoriginintheUnitedStates,15(3)proposethattheInvestmentTaxCredit
andotherFederaltaxincentivesbeamendedtostimulateU.S.solardemandandinparticular
forprojectsusingdomesticallyproducedcellsandpanels,16(4)pursuesettlementnegotiations
withrespecttotheU.S.AD/CVDordersonsolarcellsandmodulesfromChinaandTaiwanand
thedutydepositscollectedunderthoseorderscurrentlyundersuspension,(5)directthe
DepartmentofEnergy(DOE)tofundthefullcostofDOESunShotInitiativeresearchgrants.17
Imakenorecommendationwithrespecttopetitionersadditionalproposals
summarizedabove.Idorecommend,however,thatthePresidentinitiateinternational
negotiationstoaddresstheunderlyingcauseoftheincreaseinimportsofCSPVproducts.
Further,giventheextentoftheseriousinjurytothedomesticindustryandtheneedfora
comprehensivesolution,thePresidentmaywishtoconsidertheadditionalproposalstothe
extentthattheyareconsistentwithU.S.lawandwouldfacilitatethedomesticindustrys
positiveadjustmenttoimportcompetition.

(continued)
duringtheperiodofinvestigationtoremaincompetitive.SunivasPosthearingInjuryBriefatExhibit9at
Question6.
12
SeeSunivasPrehearingRemedyBriefat2527andExhibit6.
13
SeeSunivasPrehearingRemedyBriefat2328andExhs.1213;TranscriptofInjuryHearingat
9697(Card);SolarWorldsPosthearingRemedyBrief,Exhibit2,at8184.
14
SolarWorldsPrehearingRemedyBriefat2123;SolarWorldsPosthearingRemedyBrief,
Exhibit1,at6064;SunivasPrehearingRemedyBriefat1315.
15
SunivasPrehearingRemedyBriefat1516.
16
SolarWorldsPrehearingRemedyBriefat2324.
17
SolarWorldsPrehearingRemedyBriefat29.

87

VIEWSONREMEDYOFVICECHAIRMANDAVIDS.JOHANSON
ANDCOMMISSIONERIRVINGA.WILLIAMSON

I. FindingsandRecommendations

Forthereasonssetforthbelow,werecommendthefollowingactions,whichwefind
willaddresstheseriousinjurytothedomesticindustryproducingcrystallinesilicon
photovoltaiccells(whetherornotpartiallyorfullyassembledintootherproducts)(CSPV
products)andbemosteffectiveinfacilitatingtheeffortsofthedomesticindustrytomakea
positiveadjustmenttoimportcompetition:

1. ThatthePresidentimposeatariffratequotaonimportsofCSPV
productsincellformforafouryearperiod,asfollows:anadditional
tariffof30.0percentadvaloremonimportsinexcessof1.0gigawatts
inthefirstyearofrelief,25.0percentadvaloremonimportsinexcess
of1.2gigawattsinthesecondyearofrelief,20.0percentadvalorem
onimportsinexcessof1.4gigawattsinthethirdyearofrelief,and
15.0percentadvaloremonimportsinexcessof1.6gigawattsinthe
fourthyearofrelief.TherateofdutyoninquotaCSPVproductsin
cellformwouldremainunchangedthroughoutthefouryearperiod;

2. ThatthePresidentimposeanadditionaltariffonimportsofCSPV
productsinmoduleformforafouryearperiod.Theadditionaltariff
wouldbeattherateof30.0percentadvaloreminthefirstyearof
relief,25.0percentadvaloreminthesecondyearofrelief,20.0
percentadvaloreminthethirdyearofrelief,and15.0percentad
valoreminthefourthyearofrelief;

3. HavingmadeanegativefindingwithrespecttoimportsofCSPV
productsfromCanadaundersection311oftheNAFTA
ImplementationAct,1thatsuchimportsnotbesubjecttothetariff
ratequotasandadditionaltariffsdescribedabove;

4. HavingmadeanaffirmativefindingwithrespecttoimportsofCSPV
productsfromMexicoundersection311oftheNAFTA
ImplementationAct,2thatsuchimportsbesubjecttothetariffrate
quotasandadditionaltariffsdescribedabove;

5. Thatthetariffratequotasandtariffsdescribedabovenotapplyto
importsofCSPVproductsfromthefollowingcountrieswithwhichthe

1
19U.S.C.3371(a).
2
19U.S.C.3371(a).

89

UnitedStateshasfreetradeagreements:Australia,Colombia,Costa
Rica,theDominicanRepublic,ElSalvador,Guatemala,Honduras,
Israel,Jordan,Nicaragua,Panama,Peru,andSingapore;ortoimports
ofCSPVproductsfromthebeneficiarycountriesundertheCaribbean
BasinEconomicRecoveryAct;

6. ThatthePresidentconsiderexcludingfromthetariffratequotasand
tariffsdescribedabovecertainCSPVproductsproposedby
respondentsandtowhichpetitionershavenotobjected.

Wefindthattheactionsdescribedabovewillnotexceedtheamountnecessaryto
remedytheseriousinjurywefindtoexist.Inaddition,werecommendthatthePresidenttake
otherappropriateactionstofacilitatetheeffortsofthedomesticindustrytomakeapositive
adjustmenttoimportcompetition,includingdirectingtheU.S.DepartmentofLaborandthe
U.S.DepartmentofCommercetoprovideexpeditedconsiderationofanyapplicationfortrade
adjustmentassistanceforworkersandfirmsthathavebeenaffectedbyimportsofCSPV
products.WealsorecommendthatthePresidentconsiderappropriatefundingmechanisms
fortheU.S.CSPVproductsindustrythatmayfacilitateapositiveadjustmenttoimport
competition.

II. Introduction

Havingfoundthatincreasedimportsareasubstantialcauseofseriousinjurytothe
domesticindustry,wemustnowrecommendtothePresidentactionthatwilladdressthe
seriousinjuryandbemosteffectiveinfacilitatingtheeffortsofthedomesticindustrytomakea
positiveadjustmenttoimportcompetition.Indecidingwhatrelieftorecommend,wehave
takenintoaccounttheconsiderationssetforthinsection202(e)(5)(B)oftheTradeActof1974
(theTradeAct),3includingtheformandamountofactionthatwill,inourview,remedythe
seriousinjurywehavefoundtoexist;commitmentssubmittedbyfirmsinthedomestic
industryduringthecourseoftheinvestigation;informationavailabletotheCommission
concerningtheconditionsofcompetitionindomesticandworldmarkets;andlikely
developmentsaffectingsuchconditionsduringtheperiodforwhichactionisbeingrequested.

III. ConditionsofCompetition

A. DemandConditions

DemandforCSPVproductsisderivedfromthedemandforsolarelectricity,whichis
influencedbyfactorssuchascostcompetitivenesswithtraditionalenergysources,
environmentalconcerns,adesirefornationalenergyindependence,totalenergyconsumption,

3
19U.S.C.2252(e)(5)(B).

90

andtheavailabilityoffederal,state,andlocalincentives.4Inadditiontosolarelectricity,
purchaserscanuseenergyandelectricityfromawidevarietyofsources,includingtraditional
fossilfuelssuchascoalandnaturalgas,andvariousotherformsofrenewableenergy,including
wind,geothermal,andbiomass.Theavailabilityofthesealternativesourcesofenergyaffects
demandforCSPVproducts.5TheprincipalmarketsegmentsforCSPVproductsareresidential,
nonresidential/commercial,andutility,allofwhichareconnectedtotheelectricalgrid.There
isalsoanoffgridmarketsegment.6
ThevastmajorityoffirmsreportedthatU.S.demandforCSPVproductshasincreased
since2012,7andthedatashowthatapparentU.S.consumptiongrewsubstantiallyduringthe
periodofinvestigation,increasingby***percentbetween2012and2016.89Information
obtainedintheinvestigationindicatesthattherewasaspikeindemandin2016,primarilyin
theutilitysegment,drivenbytheanticipatedexpirationoftheFederalInvestmentTaxCreditin
December2016,10althoughtheprogramwassubsequentlyextendedforseveralmoreyears.11
Bothpetitionersandrespondentsagreethatthemostrelevantandreliableprojections
anticipatethatin2017and2018demandforCSPVproductswilldipbelow2016levels,but
growthwillresumein2019andafterwards.12AlthoughtheavailabledataonimportsofCSPV
productsthathavebeenarrangedfordeliveryafterDecember31,2016,suggestthatthetotal
quantityofarrangedU.S.importsforcalendaryear2017willbeover20percentlowerthanthe
volumeofU.S.importsin2016,13pressreportsindicatedthatimportsincreasedinrecent
monthsinanticipationofanyglobalsafeguardrelief.14

4
ConfidentialReport(CR)atV10;PublicReport(PR)atV6.
5
CRatV58;PRatV37.
6
SeeCRatI33toI42;PRatI24toI31.
7
CR/PRatTableV3.
8
CR/PRatTableIV3.
9
Wenotethatforpurposesofourviewsonremedy,inouranalysisofCSPVimportsfrom
CanadaandMexico,wehaveprimarilyreliedonthecountryoforiginmethodologythatCanadian
respondentsproposed(theNorthAmericanFreeTradeAgreement(NAFTA)rulesoforiginforimports
fromCanadaandMexico,andforimportsfromallothercountries,thecountrywherethecellwas
manufactured,asadjustedtoreflectU.S.cellsassembledintomodulesinaNAFTAcountry),asthe
sourceforimportdatainthisinvestigation.See,e.g.,ViewsonInjuryatSectionIII.
10
CRatV2;PRatV2;CR/PRatFigureV1.TheFederalInvestmentTaxCreditprovideda30
percenttaxcreditoncapitalexpendituresfornewsolarphotovoltaicsystemsonresidential,
nonresidential/commercial,andutilitysystems.CR/PRatTableV21.
11
CR/PRatTableV21.
12
SeeSolarWorldsPrehearingRemedyBriefat23;SolarWorldsPosthearingRemedyBriefat
13;TranscriptofRemedyHearingat215(Prusa).
13
CR/PRatTableII6.
14
See,e.g.,SunivasPosthearingInjuryBrief,Exh.9,at41;Sunpremebagsdealtosupply150
MWofheterojunctionsolarmodulestoTGCMinpvmagazine(Sept.12,2017)(EDISDocumentNo.
623538)(Analystsandsolardevelopershavetoldpvmagazinethatmosttier1PVmakershavesoldout
ofproductthroughtheendoftheyear,asinstallersandconstructioncontractorshoardPVmodulesin
anticipationoftradeactionbytheTrumpAdministration.);seealsoTranscriptofRemedyHearingat
(continued)
91

B. SupplyConditions

ThedomesticCSPVproductsindustryincludesintegratedproducers,whoproduceboth
CSPVcellsandmodules,andnonintegratedproducers,whoproduceonlyCSPVmodules.Non
integratedU.S.moduleproducersreliedlargelyonimportsofCSPVcellsduringtheperiodof
investigation,asmostU.S.productionofCSPVcellsisinternallyconsumedbyintegrated
producersfortheirCSPVmoduleoperations,andonlyafractionofU.S.manufacturedCSPV
cellsaresoldinthecommercialmarket.15Nevertheless,duringtheperiodofinvestigation,the
vastmajorityofU.S.importsofCSPVproductswereinmoduleform;U.S.importsofCSPV
modulesasashareoftotalU.S.importsofCSPVproductsincreasedfrom***percentin2012
to***percentin2016,whiletheshareofU.S.importsofcellscorrespondinglydeclinedfrom
***percentin2012to***percentin2016.16
The***domesticintegratedproducersduringtheperiodofinvestigation,SolarWorld
Americas,Inc.(SolarWorld)andSuniva,Inc.(Suniva),wereinweakfinancialconditionsat
theendoftheperiodofinvestigation.17AlthoughSolarWorldcontinuestoproduceCSPVcells
andmodules,it***,anditsparentcompany,SolarWorldAG,wentintobankruptcyproceedings
inGermany.18Suniva***,butfiledforChapter11bankruptcyin2017andsuspended
operationsatitscellandmodulefactories.19Anotherintegratedproducer,Tesla,Inc.(Tesla),
reportedthatitopenedafacilityinFremont,California,andbeganproducingcellsandmodules
thereandiscurrentlyrampingupproductionatalargenewfactoryinBuffalo,NewYork,that
beganproducingmodulesin2017.Teslaexpectstoproduce1.0gigawattsofCSPVcellsand
modulesin2019.20SeveralU.S.producershavelefttheindustryinwholeorinpartduringthe
periodofinvestigation,including***,which***,andMissionSolar,whichshutdownitsU.S.
cellproductionoperationsinSeptember2016,whilecontinuingtoproducemodules.21
RespondingforeignproducersofCSPVcellsandCSPVmodulesreportedsubstantialand
increasingcapacityandexcesscapacityduringtheperiodofinvestigation.22Theaggregate
capacityreportedbyrespondingforeignproducersconsistentlyexceededtheircombined

(continued)
65,69,380(Brightbill),109(Szamosszegi).Petitionersemphasizethatimprovementsincellandmodule
efficiencieseachyearcanquicklymakeinventoriesobsolete,increasingtheincentivetooffload
inventoriesatlowprices.SolarWorldsPosthearingInjuryBriefat12;SolarWorldsPrehearingInjury
Briefat88.
15
CRatIII27;PRatIII15.
16
CR/PRatTableII4.
17
CR/PRatTableIII5.
18
CR/PRatTableIII2;CRatIII12;PRatIII7.
19
CR/PRatTableIII2;CRatIII14toIII15;PRatIII8.
20
TeslasPosthearingRemedyBriefat46;CRatIII15toIII17;PRatIII8toIII9.
21
CR/PRatTablesIII2,III3;CRatIII10;PRatIII5.
22
TherespondingforeignproducerscollectiveCSPVcellcapacityincreasedfrom27.3million
kWin2012to56.9millionkWin2016.CR/PRatTableIV89.TheircollectiveCSPVmodulecapacity
increasedfrom25.2millionkWin2012to66.6millionkWin2016.CR/PRatTableIV90.

92

productionlevelsandisprojectedtocontinuetodosoin2017and2018.23Theresponding
foreignproducersunutilizedcapacitygrewbetween2014and2016andconsistentlyexceeded
thesizeoftheentireU.S.market.24
ThesixlargestfirmsproducingCSPVcellsandmodulesinChinadrovetheincreasein
globalovercapacityastheyexpandedtheiroperationsbeyondChinaandTaiwan.25Afterthe
impositionofU.S.antidumpingandcountervailingdutyordersonimportsfromChinain
December2012andonimportsfromChinaandTaiwaninFebruary2015,26CSPVimportsfrom
othercountriessubstantiallyincreasedtheirpresenceintheU.S.market,almostdoublingfrom
2014to2015andcontinuingtogrowin2016.27Indeed,withoutclosinganyoftheirexisting
capacityinChina,thesesixfirmsincreasedtheirglobalcapacitytoproduceCSPVcellsby
***percentbetween2012and2016withfourofthesixfirmsaddingCSPVcellmanufacturing
capacityinoneormoreofthefollowingfivecountriesduringthatperiod:Korea,Malaysia,the
Netherlands,Thailand,andVietnam.28Thesesamesixfirmsalsoincreasedtheirglobalcapacity
toproduceCSPVmodulesby***percentbetween2012and2016withoutclosinganyoftheir
existingcapacityinChinawithfourofthesixfirmsaddingCSPVmodulecapacityinoneormore
ofthefollowingsixcountries:Canada,Indonesia,Korea,Malaysia,Thailand,andVietnam.29

IV. CommitmentsSubmittedByFirmsintheDomesticIndustry

AlthoughtheCommissionreceivednoadjustmentplanfrompetitioners(oranyother
domesticproducer)withinthetimeframespecifiedinSection202(a)(4)oftheTradeAct,30each
petitionersubmittedcommitmentsregardingactionsitintendstotaketofacilitatepositive
adjustmenttoimportcompetition.Wehavecarefullyexaminedthecompanyspecific
commitmentsbySolarWorldinitsposthearingremedybrief,whichoutlineditsplansfor
investingtoincreasecapacityandcapacityutilizationandtoimprovecostsavings;itsplansfor
innovationandtechnologyupgrades;itsplansforresearchanddevelopment(R&D)
partnerships;anditsplansforsolidifyingandexpandingitscustomerbase.31Wehavealso
examinedtheprospectiveforwardactionplansubmittedbySuniva,whichindicatesthatits
prospectiveplandependsonasuccessfulagreementofareorganizationplaninitsChapter11
bankruptcyproceedingandmaychangeasaresultofsuchanagreement.Sunivasprospective
planincludessuchobjectivesasquicklyreactivatingitsproductioncapacity,producingatfull

23
SeeCR/PRatTablesIV89,IV90.
24
SeeCR/PRatTablesIV90,C1b.
25
CanadianSolar,Hanwha,JASolar,Jinko,Trina,andYingliGreen.CRatIV39n.38;PRatIV26
n.38.
26
TheantidumpingandcountervailingdutyordersonimportsfromChinaandTaiwanhada
restrainingeffectonimportsfromthosecountries,whichmaintainedapresenceintheU.S.marketbut
atlowerlevels.See,e.g.,CR/PRatTableIV3.
27
CR/PRatTableIV3,TableC1b.
28
CR/PRatTableIV17.
29
CR/PRatTableIV18.
30
19U.S.C.2252(a)(4).
31
SolarWorldsPosthearingRemedyBrief,Exhibit1,atpages513.

93

capacity,becomingprofitable,resumingitsR&Defforts,***.32Wehavealsoconsideredthe
responsesofU.S.producerstotheCommissionsquestionnaireregardingtheadjustmentsthey
wouldmaketotheiroperationstocompetemoreeffectivelywithimportsifimportreliefwere
tobegranted.33

V. RecommendedRelief

ThestatuteauthorizestheCommissiontorecommendseveralformsofaction,including
tariffs,tariffratequotas,quantitativerestrictions,appropriateadjustmentmeasures,aswellas
acombinationofthoseremedies.Indeterminingwhichoftheseformswouldbemosteffective
inremedyingtheseriousinjuryandfacilitatingpositiveadjustmenttoimportcompetition,we
haveexaminedcloselythecostsandbenefitsofeach.Wehavedeterminedthatatariffrate
quotaremedywithrespecttoimportsofCSPVproductsincellformandatariffremedywith
respecttoimportsofCSPVproductsinmoduleformwouldbethemostappropriateformsof
relief.34

A. NatureandDurationofRemedies

PetitionersSunivaandSolarWorldbothproposedspecifictariffs,ratherthanadvalorem
tariffs,of$0.25perwattonCSPVcellsand$0.32perwattonCSPVmodules;theproposed
tariffswouldbeinplaceforfouryearsandwouldbephaseddownannually.35Sunivaalso
proposedafloorprice,orminimumimportprice,forimportsofCSPVmodulesof$0.74per
watt;theproposedperwattfloorpricewouldbeineffectforfouryearsandwouldbe
increasedannually.36SolarWorldalsoproposedaquotaonimportsofCSPVcellsof0.22GWas
wellasaquotaonimportsofCSPVmodulesof5.70GW;theproposedquotaswouldbeinplace
forfouryearsandwouldbeincreasedannually.3738
Bycontrast,respondentsgenerallyurgethattheCommissionrecommendnoimport
reliefandthatanyrecommendedremedyshouldbelimitedtotechnical,financial,andtrade

32
SunivasPosthearingRemedyBriefatExh.5,AttachmentB.
33
CR/PRatTableD2.
34
ForpurposesoftheseViewsonRemedy,aCSPVmoduleisajoinedgroupofCSPVcells,
regardlessofthenumberofcellsortheshapeofthejoinedgroup,thatarecapableofgenerating
electricity.Thetermmoduleisfrequentlyusedinterchangeablywiththetermpanel.ACSPVcell
thathasundergoneanyfurtherprocessing,assembly,orinterconnection(including,butnotlimitedto,
assemblyintoalaminate)isconsideredamodule.
35
SolarWorldsPrehearingRemedyBriefat1014;SunivasPrehearingRemedyBriefat36and
Exh.1at1.
36
SunivasPrehearingRemedyBriefat78andExh.1at1.
37
SolarWorldsPrehearingRemedyBriefat1419.
38
SolarWorldalsoproposesthatthePresidentdirecttheDepartmentofLabortocertify
immediatelyworkersfromanyoftheU.S.solarfacilitiesthatshutdownduringtheperiodof
investigationforbenefitsandservicesundertheTradeAdjustmentAssistanceprogram.SolarWorlds
PrehearingRemedyBriefat2627.

94

adjustmentassistance.39Respondentssupporttheinstitutionofanimportlicensefeeon
importsofCSPVproductsinordertocreateafundthatcouldprovidecapitaltothedomestic
industry.40
Wefindthatnoneofthespecificproposalsbythepartiesastoimportreliefachieves
therightbalancebetweenaddressingtheseriousinjurytothedomesticindustryandtaking
intoaccounttheinterestsofallmembersofthedomesticindustry.Asnoted,petitionershave
proposedatariffwithaspecificrateofdutyonaperwattbasisratherthananadvalorem
tariff.WhiletheU.S.statutecontemplatesthattheCommissionmayrecommendaremedyin
theformofaspecificrateofduty,wefindthatanadvaloremtariffwouldbeamore
appropriateremedyhere,particularlygiventhecharacteristicsoftheCSPVproductsindustry.
Specifictariffsarelessflexibleinrespondingtofluctuationsinvalueasaresultofsuchfactors
astechnologyadvancesandimprovedproductionefficiency,factorsthatarecharacteristicof
theCSPVproductsindustry.IntheeventofcontinuingdeclinesinCSPVpricesasaresultof
suchadvancesandefficiencies,aspecifictariffmayresultintheratiooftheamountofduty
collectedtothepriceofaCSPVproductincreasing,whichcouldresultinthereliefexceeding
theamountnecessarytoremedytheseriousinjury,andcouldpostponethedomesticindustrys
positiveadjustmenttoimportcompetition.Moreover,theremaybeproblemsof
administrationinapplyingSunivasproposedspecificduty.41
Inaddition,wefindthatSunivasproposedfloorpriceorminimumimportpriceon
importsofCSPVproductsintheformofmodulesisnotanappropriateremedyinthiscase.
Sunivadescribedthepricefloorasaformofquantitativerestriction,whichunderitsproposal
wouldprohibittheentryofanyimportsthatdidnotmeetaminimumpriceof$0.74perwattin
thefirstyearandlowerpricesinthethreefollowingyears.42Weviewthisproposalasposing
possiblelegalquestions,includingwithrespecttothelimitationsonquantitativerestrictionsin
section203(e)(4)oftheTradeAct.43Theproposalisalsolackinginflexibilitytoensurea
sufficientsupplyofCSPVproductsinmoduleformintheU.S.market.Specifically,Sunivas
proposedquotaonimportsofCSPVproductsinmoduleformmayleaveaninsufficientsupply
ofmodulesfortheutilitysegmentgivenrespondentscontentionthatthedomesticindustry
lackssufficientcapacitytoproduce72cellmodulestomeetdomesticdemandinthat
segment.44Wealsoquestionwhethertheminimumimportpricerequirementcouldbe
enforcedandadministered.45

39
SeeSEIAsPrehearingRemedyBriefat4,4950;SEIAsPosthearingRemedyBriefat1215.
40
See,e.g.,SEIAsPrehearingRemedyBriefat5659;SEIAsPosthearingRemedyBriefat1315
andAppendixAat8792;U.S.PolysiliconIndustrysPosthearingRemedyBriefat1114;Teslas
PosthearingRemedyBriefat9.
41
Respondentsarguethataspecifictariffappliedonaperwattbasiswouldbedifficultto
administerbecauseimportsofCSPVmodulesarereportedonaperunitbasisatthetimeofentry.
SEIAsPosthearingRemedyBrief,AppendixA,at75.
42
See,e.g.,SunivasPosthearingRemedyBriefat7.
43
19U.S.C.2253(e)(4).
44
SEIAsPosthearingRemedyBrief,AppendixA,at80.
45
Respondentsassertthattheremaybeproblemsinadministeringaperwattminimumimport
pricebecause,aspreviouslynoted,importsofCSPVmodulesarereportedonaperunitbasisatthetime
(continued)
95

WealsofindthatSolarWorldsproposedquotasonimportsofbothCSPVcellsandCSPV
modulesaretoorestrictive.Suchquotasmaycreatesupplyuncertaintyandshortagesinthe
U.S.marketgiventhecurrentrelianceofnonintegratedU.S.moduleproducersonimported
cells,theverylimitedsupplyofcellsfromU.S.producers,andtheperceivedlimitedcapacityof
U.S.producerstomeetdemandintheutilitysegmentfor72cellmodulesnotedabove.
Ontheotherhand,wefindthatrespondentspositionthattheCommissionrecommend
onlytechnical,financial,andtradeadjustmentassistancewithnoimportrestrictionsoronly
minimalrestrictionswouldnotaddresstheseriousinjurytothedomesticindustrythatwe
havedeterminedwascausedbyincreasedimports.Giventheexcesscapacityofforeign
producersofCSPVproductsandthedemonstratedattractivenessoftheU.S.market,wefindit
likelythatinjuriousvolumesofimportsofCSPVproductswillcontinueintheabsenceofimport
reliefandwillcausethecontinueddeteriorationofthedomesticindustryand,further,thatthe
industrywillnotsurviveforlongintheabsenceofimportrelief.
Weviewthetariffratequotaandadvaloremtariffthatwearerecommendingasmore
flexibleandmoreappropriateremediesthanthespecificrateofdutyandthequantitative
restrictionsproposedbypetitioners.Inouranalysis,wehavetriedtobalancetheneedsof
integratedCSPVproducerswiththoseofindependentCSPVmoduleproducers,whilealso
consideringtheeffectsofanyremedyonupstreamanddownstreammarketparticipants.46As
indicatedinourdiscussionofsupplyconsiderations,Chineseproducerscontrolmostglobal
productionofCSPVproducts,andthedisappearanceofdomesticcellproducers,domestic
moduleproducers,orboth,wouldleaveU.S.downstreammarketparticipantsatthemercyof
theseandotherforeignsuppliersbothintermsofpriceandsupply.
WerecommendaremedyonimportsofCSPVproductsinmoduleformthatismore
restrictivethanourrecommendedremedyonimportsofCSPVproductsincellform,
recognizingthatthevastmajorityofU.S.importsofCSPVproductshavebeeninmoduleform.
OurrecommendedtariffwithrespecttoimportsofCSPVproductsinmoduleformshouldlead
todevelopmentofgreaterU.S.moduleproduction,whichwillbenefitbothintegratedandnon
integratedU.S.moduleproducers.GiventhatcurrentU.S.cellcapacityisinsufficienttosupply
nonintegratedU.S.moduleproducers,wehaverecommendedalessrestrictivetariffrate
quotawithrespecttoimportsofCSPVproductsincellformsothatthoseU.S.module
producerswillnotfaceasupplyshortageincells.47Inthisway,ourtariffratequotaonimports
ofCSPVproductsincellformshouldbenefitintegratedCSPVproductsproducerswithout
causingundueharmtoindependentmoduleproducers.

(continued)
ofentryandbecausetheproposedminimumimportpricewouldbeinclusiveoftheperwatttariffs
proposed.SeeSEIAsPosthearingRemedyBrief,AppendixA,at7980.Moreover,thereisaquestionas
tohoweffectiveaminimumimportpriceonCSPVmoduleswouldbegiventhatforeignproducersmight
switchtofocusingonshippinghighervalueCSPVmoduleproductstotheU.S.marketasaresultofthe
minimumimportprice.Id.at80;cf.TranscriptofRemedyHearingat173(Keeler).
46
Seegenerally,19U.S.C.2252(e)(5)(B)(iv);seealso19U.S.C.2252(f)(2)(G)(i)and(ii).
47
WenotethatthePresidentmaywishtoprovidefurtherdetailsastoanytariffratequotain
anyfinalremedyadopted,includingatimeallocationforthequotawithineachyearaswellascountry
allocations.

96

Indeterminingtheappropriatelevelofrelief,wehaveconsideredalltheinformation
obtainedinthisinvestigation,includingquestionnaireresponses,hearingtestimony,andthe
briefsofpartiesaswellastheresultsofanindustryspecificpartialequilibriumeconomicmodel
thatdistinguishedbetweenCSPVcellproductionandtradeandCSPVmoduleproductionand
trade.Weusedthismodeltoestimatechangesinpricesandquantitiesofimportedarticles
anddomesticproductsthatcompetewiththemintheU.S.marketforCSPVcellsandmodules
andchangesintherevenuesandoperatingincomeofU.S.producersthatwouldresultfrom
ourremedyrecommendations.BydistinguishingbetweenCSPVcellandmoduleproduction,
andbytracingthedifferentinternationalsupplychainsforCSPVcellsandmodules,themodel
wasabletoestimatetheeffectsofthedifferentremediesonimportsofcellsandimportsof
modulesonU.S.producersofCSPVproductsincellandmoduleform.48
WealsoestimatedthefinancialimpactofeachremedyonU.S.producersofCSPVcells
andmodulesusingaproformafinancialanalysisofincomestatementsandinformationonthe
fixedandvariablesharesofthedomesticindustryscostofgoodssold(COGS)andselling,
generalandadministrativeexpenses(SG&A).Theproformaanalysistakestheestimated
changesinthevolumeandpricesofU.S.producersfromtheremedymodelasinputs.The
financialcalculationsincorporateU.S.producerquestionnairedataregardingtheshareofCOGS
andSG&Athatarevariablecosts.49
Wehaveusedthismodelasatoolforanalyzingtheeffectsofvarioustraderestrictions
onimportvolumes,prices,andtherevenueofU.S.cellandmoduleproducers;however,the
modelissubjecttocertainlimitations.Keyamongtheselimitationsisthefactthatthemodel
doesnotaddresstheimpactofourproposedremediesonupstreamordownstreamindustries
orontherestoftheU.S.economy.Themodeldoesprovideanestimateofthepercentage
changeinthedeploymentofmodulesunderthevariousremedyscenarios,butitdoesnot
attempttoestimatethefinancial,employment,oranyothereffectsofthischangeonany
sectoroftheU.S.economyotherthancellandmoduleproducers.50Inconsideringtheeffectof
theproposedtraderemediesonothersectorsoftheU.S.economy,wehavereliedonhearing
testimony,briefs,andquestionnaireresponsestoinformouranalysis.
Theresultsofourindustryspecificpartialequilibriummodelindicatethatour
recommendedremedieswillrestrictimportvolumeandincreasepricessufficientlyforthe
domesticindustrytoincreaseitsoperatingincome,allowingittoinvestinnewcapacityand
achievetheeconomiesofscalenecessarytocompetewithimports.Theresultsofthemodel
showthattheremedywearerecommendingwillallowU.S.importsofCSPVproductsincell
formtoincrease,whichwillbenefitU.S.producersthatuseimportedcells.Furthermore,the
modelshowsthattheremedywearerecommendingwillresultinanincreaseinthepriceof
importsofCSPVproductsinmoduleform,whichwillbenefitbothU.S.moduleproducersthat

48
SeeMemorandumECPP023(October23,2017).Wealsotookintoaccounttheexisting
antidumpingandcountervailingdutyordersonCSPVproductsfromChinaandTaiwan.Insettingthe
levelsofourtariffratequotaandtariffrecommendations,weconsideredthefactthatthesemeasures
alreadyprovidesomedegreeofprotectiontothedomesticindustry.
49
SeeMemorandumECPP023(October23,2017).
50
SeeMemorandumECPP023(October23,2017).

97

useimportedcellsandU.S.moduleproducersthatusecellsproducedintheUnitedStates.51
Thus,theeconomicmodelingresultsprovideadditionalsupportforthesafeguardremedieswe
arerecommending.
Giventheprecariousconditionofthedomesticindustry,werecommendtheimposition
ofsafeguardmeasuresforfouryearstoaffordtheindustrysufficienttimetomakeapositive
adjustmenttoimportcompetition.Werecognizethatreliefofmorethanthreeyearsduration
willrequiretheCommissiontoconductamidcoursereviewunder19U.S.C.2254(a)(2).Such
aninvestigationwouldprovidetheCommissionwithanopportunitytoreviewformally,among
othermatters,theprogressoffirmsinthedomesticindustryinimplementingthecommitments
theysubmittedtotheCommission.ItwouldalsoprovidethePresident,afterreceivingthe
Commissionsreport,withtheopportunitytoreduceorterminatereliefiftheindustryhasnot
madeadequateeffortstomakeapositiveadjustmenttoimportcompetition.
Furthermore,inlightofthemanyU.S.firms,workers,andcommunitiesthathavebeen
adverselyaffectedbytheinjurioussurgeofimportsofCSPVproducts,werecommendthatthe
PresidentdirecttheU.S.DepartmentofLaborandtheU.S.DepartmentofCommerceto
provideexpeditedconsiderationofanyapplicationsfortradeadjustmentassistancefor
workersand/orfirmsthathavebeenaffectedbyimportsofCSPVproducts.
Wenotethatthedomesticindustrysseriousinjuryresultingfromincreasedimportshas
leftitwithinsufficientworkingcapitalandotherfinancialresourcestomaketheinvestmentsin
capacity,R&D,andimprovedproductsandproductionprocessesnecessaryfortheindustryto
competewithimportsofCSPVproducts.Wealsonotethatdomesticproducers(both
petitionersandnonpetitioners)andSEIAandotherrespondentssupportedtheneedforthe
domesticindustrytoreceiveadditionalfinancialresourcesinordertoadjustandcompete52and
thatwetookthepossibilityofsuchassistanceintoaccountinassessingthelevelofimportrelief
werecommended.WeaccordinglyrecommendthatthePresidentconsideranyappropriate
fundingmechanismsthatmayfacilitateapositiveadjustmentbythedomesticindustryto
importcompetition.

B. CountryExclusions

HavingmadeanegativefindingwithrespecttoimportsofCSPVcellsandmodulesfrom
Canadaundersection311oftheNAFTAImplementationActforthereasonssetoutinthe
Commissionsviewsoninjury,werecommendthatthePresidentnotincludeimportsfrom
Canadainanyremedyaction.Havingmadeanaffirmativefindingwithrespecttosuchimports
fromMexico,werecommendthatthePresidentincludeimportsfromMexicowithinany
remedyaction.

51
SeeAttachment1hereto.
52
SeeSunivasPrehearingRemedyBriefat1618;SolarWorldsPosthearingRemedyBriefat57
59;SunivasPosthearingRemedyBriefat9;TeslasPosthearingRemedyBriefat9;AuxinSolarInc.s
PosthearingRemedyBriefatI13toI14;MissionSolarsPosthearingRemedyBriefat7;SEIAs
PrehearingRemedyBriefat5659;SEIAsPosthearingRemedyBriefat1315andAppendixAat8692;
U.S.PolysiliconIndustrysPosthearingRemedyBriefat1114.

98

Further,werecommendthattheabovetariffratequotaandincreasedratesofdutynot
applytoimportsfromthefollowingcountrieswithwhichtheUnitedStateshasfreetrade
agreements:Australia,Colombia,CostaRica,theDominicanRepublic,ElSalvador,Guatemala,
Honduras,Israel,Jordan,Nicaragua,Panama,Peru,andSingapore.Wealsorecommendthat
thetariffratequotasandincreasedratesofdutynotapplytoimportsfromthebeneficiary
countriesundertheCaribbeanBasinEconomicRecoveryAct.

C. RequestsforProductExclusions

Duringtheremedyphaseofthisinvestigation,theCommissionwaspresentedwitha
numberofrequeststoexcludefromanyremedyparticularproductsincludedinthescopeof
theinvestigationastowhichtheCommissionmadeanaffirmativedeterminationintheinjury
phaseoftheproceedings.Thepartiesmakingtheserequestsgenerallycontendedthatthe
productsforwhichtheywererequestingexclusionswerenicheorspecialtyproductseithernot
producedbythedomesticindustryorproducedininsufficientquantitiestosatisfyU.S.
demand.53Thepetitionersarguethatmostoftheproductscoveredbytheseexclusion
requestscompetedirectlywithproductsproducedbythedomesticindustry,andthatto
excludethemwillundermineanysafeguardremedyanddiscourageU.S.investmentinthese
technologies,54andwedeclinetorecommendtheexclusionofsuchproductsfromour
remedies.However,werecommendthatthePresidentconsidercertainrequestedproduct
exclusionsastowhichpetitionershavestatedthattheydonotobject.55Ourrecommendation
iswithoutprejudicetoconsiderationbythePresidentofproposalsforexclusionofother
productsfromanyremedyimposed.56

VI. ShortandLongTermEffectsofOurRecommendedRemedy

Thetariffratequotasandtariffremediesandothermeasuresthatweare
recommendingwilladdresstheseriousinjurytothedomesticCSPVproductsindustryandwill
bemosteffectiveinfacilitatingtheeffortsofthedomesticindustrytomakeapositive

53
SeeKOPIAsPrehearingRemedyBriefat2229;PrehearingRemedyBriefoftheGovernment
ofKoreaat56;BYDsPrehearingRemedyBriefat24;SunPowersPrehearingRemedyBriefat1316;
SunPowersPosthearingRemedyBriefat1015;SolatubesPrehearingRemedyBriefat115;Solatubes
PosthearingRemedyBriefat26;GoalZerosPrehearingRemedyBriefat221;GoalZerosPosthearing
RemedyBriefat19;EnphasesSeptember27,2017CommentsonRemediesat14.
54
SeeSolarWorldsPosthearingRemedyBrief,Exh.2,at6769;SunivasPosthearingRemedy
Brief,Exh.5,AttachmentD.
55
PetitionersindicatedthattheydonotobjecttotherequestsbyGoalZeroandSolatubefor
exclusionofcertainlowwattageproductsandthattheywouldworkwiththesecompaniestodraft
appropriateproductspecificexclusionlanguage.SolarWorldsPosthearingRemedyBrief,Exh.2,at68;
SunivasPosthearingRemedyBrief,Exh.5,AttachmentDat67.
56
WenotethattheOfficeoftheU.S.TradeRepresentativehasrecentlyissuedaFederal
Registernoticesolicitingpubliccommentsandschedulingapublichearingwithrespecttothe
Commissionsremedyrecommendations.

99

adjustmenttoimportcompetition.Theyalsodonotexceedtheamountnecessarytoremedy
suchseriousinjury.
Giventheprecariouspositionofthedomesticindustryasaresultoftheseriousinjury
causedbyincreasedimports,itisessentialthattheindustryreceivestrongimportreliefinthe
shorttermandcommenceitsadjustmenteffortsquicklytofacilitateitssurvival.Intheshort
term,theremedieswehaverecommendedwillgivethedomesticindustrysomeprotection
fromimportsandallowamodestincreaseinU.S.prices.Accordingly,U.S.producerscashflow
andoperatingincomewillincrease,givingthemfundsnecessaryforinvestmentsinincreased
capacityandproductionaswellasinR&Dandinnovation.Thesurvivalofthedomesticindustry
dependsonitsabilitytoinnovateandimprovebothitsproductsanditsproductionprocesses
andtoexpandproductionandcapacitytoachieveeconomiesofscalesoastoenableitto
competewithimportsofCSPVcellsandmodules.
SolarWorldscompanyspecificcommitmentsindicatethatifimportreliefisgranted,it
intendstorampupitsCSPVcellproductiontofullcapacityatitsexistingfacilitiesbyMay2018
withmoduleproductiontofollowsuit.SolarWorldalsointendstomakelongertermplansfor
investmentstoincreasecapacity,capacityutilization,andcostsavings;spurinnovationand
technologyupgrades;enterintoR&Dpartnerships;andsolidifyandexpanditscustomerbase.57
Sunivasprospectiveactionplanwhichdependsonagreementtoareorganizationplaninits
Chapter11bankruptcyproceedingenvisionsthat,ifgranted,importreliefwouldenableitto
emergefromtheChapter11proceedingand,shortlythereafter,reactivateitsproduction
capacity.Atthesametime,theplanenvisionsthatSunivawouldmovetowardsfullcapacity,
profitability,andtheresumptionofitsR&Deffortswhileinthelongertermseekingto***.58
Theimportreliefwehaverecommendedwillalsoencourageadditionalprivate
investmentandnewentrantsinthedomesticindustry,includingbothintegratedproducersand
nonintegratedmoduleproducers.Informationobtainedduringtheinvestigationindicatesthat
anumberofdomesticproducersareplanningorconsideringopeningU.S.CSPVproduction
facilitiesinanticipationofimportrelief,including***,***,***,***,and***.59
Aspreviouslydiscussed,petitionersandrespondentsagreethatthemostrelevantand
reliableprojectionsshowthatdemandforCSPVproductsisexpectedtodipfrom2016levelsin
2017and2018,butwillresumegrowingin2019andafterwards,evenintheeventof
somewhathigherU.S.prices.60Thus,anyshorttermadverseeffectonU.S.downstream
demandfromhigherU.S.pricesasaresultofimportrestrictionsisunlikelytohaveasignificant
effectontherecoveryoftheU.S.industryfromtheseriousinjuryoritspositiveadjustmentto
importcompetition.
Inthelongerterm,bytheenddateofourrecommendedremedies,theincreased
capacityandproductionofdomesticproducers,theirstrengthenedfinancialandworking
capitalposition,andtheirimprovedproductsandproductionprocessesshouldgivethemthe

57
SolarWorldsPosthearingRemedyBrief,Exhibit1,atpages513.
58
SunivasPosthearingRemedyBriefatExh.5,AttachmentB.
59
See,e.g.,SolarWorldsPosthearingRemedyBriefat8andExh.11;CR/PRatTableD2.
60
SeeSolarWorldsPrehearingRemedyBriefat23;SolarWorldsPosthearingRemedyBriefat
13;TranscriptofRemedyHearingat215(Prusa).

100

abilitytoachievetheeconomiesofscalenecessaryforthemtobidonlargeutilityprojects.For
allthesereasons,webelievethatourrecommendedremedieswillenablethedomestic
industrytomakeapositiveadjustmenttoimportcompetitionduringtheremedyperiodand
emergeinagreatlystrengthenedcompetitivepositionoverthelongterm.

VII. ShortandLongTermEffectsofNotTakingtheRecommendedAction

Intheabsenceofrelief,theinjurioussurgeofimportswouldlikelycontinuegiventhe
largeandgrowingexcesscapacityofforeignproducersandtheattractivenessoftheU.S.
markettothoseproducers.Asaresult,thedomesticindustry,includingbothCSPVcelland
moduleproducers,wouldlikelyceasetoexistintheshortterm.Thedomesticindustrysuffered
operatinglossesthroughouttheperiodofinvestigation,andthoselosseswouldlikelycontinue
andworsenintheabsenceofrelief,leavingthedomesticindustryunabletoinvestinthe
innovationandR&Dnecessaryforitslongtermsurvival.Thisindustryrequirescontinual
technologicaladvancesandefficiencyincreases,necessitatingconstantinnovationaimedat
bothimprovingtheproductandtheproductionprocess,allofwhichrequiresubstantial
investmentsinR&D.
Moreover,thelikelydisappearanceoftheU.S.CSPVindustryintheabsenceofimport
reliefwouldhaveadverseconsequencesforotherU.S.firmsparticipatinginthebroaderCSPV
productsmarket.Asdiscussedabove,downstreammarketparticipantswouldbecomemore
dependentonforeignsuppliersofCSPVproductsincellandmoduleform,leavingthem
vulnerablebothastopriceandsupply.UpstreamU.S.producersthatsupplybothU.S.CSPV
cellandmoduleproducerswouldexperiencesignificantlossesastheircustomerscutbackor
wentoutofbusinessastheydidduringtheperiodofinvestigation.WenotethatSKC,Inc.,
whichhadbeenthesoleremainingU.S.supplierofethylvinylacetate(EVA)sheetstoU.S.
moduleproducers,idledproductionofEVAsheetsatitsCovington,Georgia,facilityin2017
becauseofsharplydecliningordersfromU.S.CSPVproducers.61Similarly,upstream
componentsupplierUlbrichSpecialtyWireandSolarTechnologies(Ulbrich),aproducerof
engineeredwires,includingPVribbonforsolarpanels,sawitsbusinessrapidlydeclineasits
U.S.customerscutproduction,closed,orfiledforbankruptcy;thisinturnledUlbrichtoclose
itsHillsborough,Oregon,facilityinAugust2017.62
Furthermore,currentCSPVcellandmoduletechnologyistoasubstantialdegreea
productofR&DandinnovationintheUnitedStates,includingbythepetitioners.63The

61
TranscriptofInjuryHearingat132135(Byerson);August22,2017WrittenStatementbySKC,
Inc.at14.
62
TranscriptofRemedyHearingat9598(Treglia).
63
See,e.g.,CR/PRatTablesIII2,III6;CRatIII9toIII17,III22;PRatIII5toIII10;SolarWorlds
PosthearingInjuryBriefat10;HearingTr.at88,90(Stein);SolarWorldsPrehearingInjuryBriefat52;
SunivasPosthearingInjuryBriefat78,Exhibit9at4.Forexample,SolarWorldwasoneoftheearliest
producersofmonocrystallineproductsandthefirstproducerofmonocrystallinePERCproducts,and
petitionersobservethatthemarketnowisstronglymovingtomonocrystallinePERCproductswhere
SolarWorldisarecognizedleader.SolarWorldsPosthearingInjuryBriefat9,10,Exhibit1,sectionIat1,
sectionIIat9,Exhibit9;TranscriptofInjuryHearingat22021(Stein),222(Card).SolarWorldalso
(continued)
101

disappearanceoftheU.S.industryproducingCSPVcellsandmoduleswouldleadtoadeclinein
U.S.R&Dandinnovationinthesolarenergyfield,whichhaseconomicandsocialbenefitsinthe
UnitedStatesfarbeyondthebenefitstothespecificfirmsconductingtheR&D.64Indeed,the
lossofthedomesticindustry,andtheresultingrelianceofdownstreamindustriesonforeign
producersofCSPVproducts,couldhavesignificantlongtermconsequencesforU.S.economic
andnationalsecurity.65

VIII. OtherStepstoFacilitatetheIndustrysPositiveAdjustmenttoImportCompetition

Inadditiontotheirproposalsforimportrelief,bothpetitionersalsoproposethatthe
PresidentissueanexecutiveorderdirectingallU.S.governmentagenciestorequireuseofU.S.
originsolarcells66andthatthePresidentinitiatebilateralandmultilateralnegotiationsto
addressglobalovercapacityinsolarcellsandmodules.67SunivaproposesthatthePresident
directhisAdministrationtoconductastudyofthecyber,electricalgrid,andnationalsecurity
risksofusingsolarpanelsofforeignoriginintheUnitedStates.68Italsoproposesthatthe
domesticindustryreceivefunds,whichmaycomefromcollectedU.S.antidumpingand
countervailingdutiesonimportsofsolarcellsandmodulesfromChinaandTaiwanthatare
currentlyundersuspension,fromanytariffsthatareimposedasaresultofthisSection201
proceeding,orfromothersources.69
SolarWorldproposesthattheInvestmentTaxCreditandotherfederaltaxincentivesbe
amendedtostimulateU.S.solardemandandinparticularforprojectsusingdomestically
producedcellsandpanels.70SolarWorldalsoproposesthatthePresidentpursuesettlement
negotiationswithrespecttotheU.S.antidumpingandcountervailingdutyordersonsolarcells
andmodulesfromChinaandTaiwanandthedutydepositscollectedunderthoseorders
currentlyundersuspension.SolarWorldsuggeststhattheproposedsettlementnegotiations
encompasstheantidumpingandcountervailingdutyordersimposedbyChinaonimportsof
solargradepolysiliconfromtheUnitedStates.71Also,SolarWorldproposesthatthePresident

(continued)
developedtheptypePERCbifacialcellin2015,thenextlevelofinnovationthatincreasesenergyyield
atthesystemlevelandhasagreaterimpactonthecostofthedeliveredenergy.SolarWorlds
PosthearingInjuryBriefatExhibit1,sectionIat12.Sunivaidentifiedanumberofinnovationsthatthe
firmmadethroughoutitshistoryandthetechnologychangesitimplementedduringtheperiodof
investigationtoremaincompetitive.SunivasPosthearingInjuryBriefatExhibit9atQuestion6.
64
SeeSunivasPrehearingRemedyBriefat2527andExh.6.
65
SeeSunivasPrehearingRemedyBriefat2328andExhs.1213;TranscriptofInjuryHearingat
9697(Card);SolarWorldsPosthearingRemedyBrief,Exh.2,at8184.
66
SolarWorldsPrehearingRemedyBriefat2123;SolarWorldsPosthearingRemedyBrief,Exh.
1,at6064;SunivasPrehearingRemedyBriefat1315.
67
SolarWorldsPrehearingRemedyBriefat2425;SunivasPrehearingRemedyBriefat16.
68
SunivasPrehearingRemedyBriefat1516.
69
SunivasPrehearingRemedyBriefat1618.
70
SolarWorldsPrehearingRemedyBriefat2324.
71
SolarWorldsPrehearingRemedyBriefat2728.

102

directtheDepartmentofEnergy(DOE)tofundthefullcostofDOESunShotInitiativeresearch
grants.72
Wemakenorecommendationwithrespecttopetitionersadditionalproposals
summarizedabove.Nevertheless,giventheextentoftheseriousinjurytothedomestic
industryandtheneedforacomprehensivesolution,thePresidentmaywishtoconsiderthe
proposalstotheextentthattheyareconsistentwithU.S.lawandwouldfacilitatethedomestic
industryspositiveadjustmenttoimportcompetition.

72
SolarWorldsPrehearingRemedyBriefat29.

103

Attachment1

RemedyRecommendationsofViceChairmanDavidS.JohansonandCommissionerIrvingA.Williamson

Table1summarizestheremedyrecommendationforeachofthefouryearsintheremedyperiod.

Table1:SummaryofRemedyRecommendations
Year1 Year2 Year3 Year4
AdValoremTariffonImportedModules 30% 25% 20% 15%
QuotaAmountinTRQonImportedCells 1GW 1.2GW 1.4GW 1.6GW
InQuotaRateintheTRQonImportedCells 0% 0% 0% 0%
OutofQuotaRateintheTRQonImportedCells 30% 25% 20% 15%

Basedontheseassumptions,weestimatedtherecommendedremedywillhavetheeffectsreportedintable2:

Table2:EstimatedEconomicEffectsoverthe4YearsoftheRecommendedRemedy
Year1 Year2 Year3 Year4
%ChangeintheQuantityofImportedCells* *** *** *** ***
ChangeintheGWofImportedCells *** *** *** ***
%ChangeintheQuantityofImportedModules *** *** *** ***
ChangeintheGWofImportedModules *** *** *** ***
%ChangeintheQuantityofU.S.ModulesUsingU.S.Cells *** *** *** ***
ChangeintheGWofU.S.ModulesUsingU.S.Cells *** *** *** ***
%ChangeinthePriceofU.S.ModulesUsingU.S.Cells *** *** *** ***
%ChangeintheOverallPriceofModulesintheU.S.Market *** *** *** ***
%ChangeintheDeploymentofModulesintheU.S.Market *** *** *** ***
ChangeinRevenuefromU.S.Modules *** *** *** ***
UsingU.S.Cells(milliondollars)
ChangeinOperatingIncomefromU.S.Modules *** *** *** ***
UsingU.S.Cells(milliondollars)
ChangeinRevenuefromU.S.CellsUsedinForeignModules *** *** *** ***
ExportedtotheUnitedStates(milliondollars)
ChangeinOperatingIncomefromU.S.CellsUsedinForeign *** *** *** ***
ModulesExportedtotheUnitedStates(milliondollars)
ChangeinRevenuefromU.S.Modules *** *** *** ***
UsingForeignCells(milliondollars)
ChangeinOperatingIncomefromU.S.Modules *** *** *** ***
UsingForeignCells(milliondollars)
CombinedChangeinRevenuefromU.S.Production *** *** *** ***
(milliondollars)
CombinedChangeinOperatingIncomefromU.S.Producers *** *** *** ***
(milliondollars)
ChangeinU.S.TariffRevenues *** *** *** ***
(milliondollars)
Note:Theseeffectsareroundedto0.1.
*ThisisthepercentagechangeinthequantityofimportedcellsusedinU.S.modules.

Assumptionsusedinthemodel:
ThebaselinedataforeachyearisbasedonGTMResearchprojectedgrowthintotalCSPVdeploymentinthe
U.S.market,assumingthatthefirstyearoftheremedyis2018andthefourthyearoftheremedyis2021.
Thepriceelasticityoftotaldemandinthemarketis1.
Thedomesticsupplyelasticityis4.
Theotherelasticityvaluesinthemodelareatthemidpointsoftherangesinthefinalstaffreport.
TheremedydoesnotapplytoimportsfromCanadaorSingapore.

104

ViewsofCommissionerMeredithM.BroadbentonRemedy

I. SummaryofFindingsandRecommendations

OnSeptember22,2017,Ifoundthatincreasedimportsofcrystallinesiliconphotovoltaic
cells(whetherornotpartiallyorfullyassembledintootherproducts)(CSPVproducts)1are
beingimportedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantialcause
ofseriousinjurytothedomesticindustryproducingsucharticles.Overthefiveyearperiod
coveredbythissafeguardinvestigation,U.S.producersofCSPVproductshavesuffered
operatinglossesasaresultoflowmarketpricesthathavepreventedtheexpansionof
productioncapacitynecessarytocompetesuccessfullywithimports.ManyU.S.producers
haveshutdownfacilities.Myrecommendationsareintendedtoaddresstheseriousinjury
whileseekingtoavoidinflictingadditionaldamageonthebroadersolarenergyindustryinthe
UnitedStates.TheU.S.solarenergyindustryhasbeenarelativesuccessstoryinmaking
progresstowardgridparitywithacarbonneutralsourceofpower.TheUnitedStatesis
recognizedasagloballeaderinthisbroadersectorandU.S.taxpayersandpolicymakershave
chosentosupportthissuccessovermanyyears.
Forthereasonssetforthbelow,IrecommendthatthePresident:

(A) ImposeaquantitativerestrictiononimportsofCSPVproductsintotheUnitedStates,
includingcellsandmodules,forafouryearperiod,administeredonaglobalbasis.I
recommendthatthequantitativerestrictionbesetat8.9gigawattsinthefirstyear,and
increaseby1.4gigawattseachsubsequentyear;2

(B) Administerthesequantitativerestrictionsbysellingimportlicensesatpublicauctionat
aminimumpriceof$0.01perwatt;

(C) Totheextentpermittedbylaw,authorizetheuseoffundsequaltotheamount
generatedbyimportlicenseauctionstoprovidedevelopmentassistancetodomestic

1
AlthoughthescopedefinitionincludesotherCSPVproductswhichcontaincells,suchaslaminates
andbuildingintegratedmaterials,thevastmajorityofinscopemerchandiseandthelikeordirectly
competitivearticleiscomprisedofCSPVcellsandfinishedmodules.
2
HavingmadeanaffirmativefindingwithrespecttoimportsfromMexicoundersection311(a)of
theNorthAmericanFreeTradeAgreement(NAFTA)ImplementationAct,Irecommendthatthe
Presidentallocatenolessthan720megawattsoftheglobalquantitativerestrictiontoimportsofCSPV
productsfromMexicoduringthefirstyear,whichwouldexpandby115megawattseachyear.Having
madeanegativefindingwithrespecttoimportsfromCanadaundersection311(a)oftheNAFTA
ImplementationAct,IrecommendthatthequantitativerestrictionnotapplytoimportsfromCanada.
Furthermore,IrecommendthatthequantitativerestrictionnotapplytoimportsfromAustralia,the
countriesthataresignatoriestotheDominicanRepublicCentralAmericaFreeTradeAgreement
(CAFTADRcountries),Colombia,Israel,Jordan,Panama,Peru,Singapore,andthebeneficiarycountries
undertheCaribbeanBasinEconomicRecoveryAct(CBERA).

105

CSPVproductmanufacturersforthedurationoftheremedyperiod,suchasthrough
authorizedprogramsattheUnitedStatesDepartmentofEnergy;and

(D) Implementotherappropriateadjustmentmeasures,includingtheprovisionoftrade
adjustmentassistancebytheUnitedStatesDepartmentofLaborandtheUnitedStates
DepartmentofCommercetoworkersandfirmsaffectedbyimportcompetition.

II. RemedyRecommendations

a. CompetitiveConditions

Iconsideredthefollowingconditionsofcompetitioninthedomesticandworldmarkets
inevaluatingthevariousremedyoptionsfortheindustryproducingCSPVproducts.

i. Chinaisdrivingglobaloversupplyandpricedeclines

TheunderlyingfactordrivingtheincreaseinU.S.importsoflowpricedCSPVproducts
hasbeenasubstantialanddeliberatebuildupofChinesesupplythatconsistentlysurpassed
Chinesedemand.CSPVcellproductioncapacityinChinaincreasedfrom40GWin2012to63
GWin2016,whereasphotovoltaic(PV)installationsinChinaincreasedfrom3.2GWin2012to
34.5GWin2016.3Inaddition,CSPVmoduleproductioncapacityinChinasurpassedglobalPV
installationsineachyearduringthe20122016period.4ThesupplydemandimbalanceinChina
persistedthroughouttheperiodexaminedbytheCommission,makingChinaasubstantial
surplusproducerandexporterofCSPVproducts,whichfloodedworldmarkets.5Accordingto
thedatagatheredinresponsetoforeignproducerquestionnaires,Chinasglobalexportsof
CSPVmodulesreached13.9GWin2016,largerthanapparentU.S.consumptioninthatyear
andaccountingfornearlyhalfofglobalexportsreportedbyallcountries.6
ThesuccessofChineseCSPVmanufacturershasbeendriveninlargepartbythe
economiesofscalethattheyhavebeenabletoachieve,ratherthanbyanycomparative

3
CRIV33,IV4748;PRatIV20,IV3031;LvFang,XuHonghua,WangSicheng,NationalSurvey
ReportofPVPowerApplicationsinChina2013,IEAPVPS,September13,2014,pp.1415(EDISDoc.
627085fileID1238006);LvFang,XuHonghua,WangSicheng,NationalSurveyReportofPVPower
ApplicationsinChina2016,IEAPVPS,2017,pp.1819(EDISDoc.627085fileID1238006at44).In
additiontoCSPVproducts,PVinstallationsincludesolarinstallationsmadefromthinfilm,whichisan
outofscopephotovoltaicproduct.CRatI11,15;PRatI8,11.
4
SEIAPosthearingRemedyBrief,Exhibit32.
5
Ineachyearbetween2012and2016,annualChineseproductionofPVmoduleswaslargerthan
annualChinesePVinstallationsbybetween***and***.SEIAPosthearingRemedyBrief,Exhibit32.
6
CR/PRatTableIV22,TableIV90,andTableC1b.ThisdataunderstatesthesizeoftheChinese
industry,andthereforeChinasglobalexportsofCSPVmoduleswerelikelyhigher.CRatIV36;PRatIV
23.

106

advantageinherenttotheChineseeconomy.7ChinasCSPVcommercialproductionbeganto
growrapidlyintheearly2000s,whenChinesecompaniesbegantoservethegrowingmarketin
Europe,particularlyGermany,whichdidnothavesufficientcapacitytomeetdemand.8After
obtainingcapitalequipment,expertise,andR&DsupportfromEurope,Chinesefirmsdeveloped
theirownexpertiseandindustrialmodelstosupplydemandgrowthelsewhere.9Chinese
manufacturersarenowamongthelargestintheworld,withmanyofthelargestcelland
moduleproducersbeingheadquarteredorhavingmanufacturingoperationsinChina.10These
firmsareinnovative,verticallyintegratedcompanieswithsupplychainsandinvestments
throughouttheworld.11
However,thekeydriverofrapidgrowthandovercapacityintheChineseindustryhas
beenamixtureofgovernmentdrivenindustrialpolicyandadhocprovincialandlocalsubsidies.
Overfourfiveyearplanscovering2001to2020,theChinesegovernmentlaidoutpriorities
fortheindustrythatinitiallyfocusedonscalingupcapacity,butlaterincludedimprovingand
localizingR&DwithinChina,reducingcostsofmanufacturing,andincreasingbothexportsand
domesticdeploymentofsolarprojects.12AsdeterminedbytheUnitedStatesDepartmentof
Commerce(DOC)intwoseparatecountervailingduty(CVD)investigations,theChinese
nationalgovernmentandregionalgovernmentshaveprovidedanarrayofmechanismsfor
supportingtheCSPVmanufacturingindustry,includingrebatesonvalueaddedtaxand
corporateincometax,preferentialpolicylending,provisionofgrants,provisionofinputsfor
lessthanadequateremuneration(includingland,electricity,polysilicon,aluminum,andglass),
andR&Dsupport,amongotherincentives.13

7
JeffreyBall,DanReicher,XiaojingSun,CaitlinPollock,TheNewSolarSystem,StanfordUniversity,
March2017,116117(EDISDoc.627084fileID1238000at85)(NewSolarSystem);HearingTr.at180
(Shea).
8
DonaldChung,KelseyHorowitz,andParthivKurup,OnthePathtoSunShot:Emerging
OpportunitiesandChallengesinU.S.SolarManufacturing,DOENationalRenewableEnergyLaboratory
(NREL),1114(EDISDoc.627084fileID1238001at237)(OnthePathtoSunShot);NewSolarSystemat
45.
9
Id.
10
CR/PRatIV16;CRatIV13,16;PRatIV9,12.
11
CRatIV3942;PRatIV2629;NewSolarSystemat40,61.
12
NewSolarSystemat8695;OnthePathtoSunShotat9;SolarWorldPrehearingInjuryBriefat75
76.
13
U.S.DOC,IssuesandDecisionMemorandumfortheFinalDeterminationintheCountervailing
DutyInvestigationonCrystallineSiliconPhotovoltaicCells,WhetherorNotAssembledintoModules,
fromthePeoplesRepublicofChina,October9,2012(CSPVII&DMemorandum);U.S.DOC,Issues
andDecisionMemorandumfortheFinalDeterminationintheCountervailingDutyInvestigationon
CrystallineSiliconPhotovoltaicProductsfromthePeoplesRepublicofChina,December15,2014
(CSPVIII&DMemorandum);CSPVIConfidentialStaffReport(CSPVIStaffReport)atI6;CSPVII
ConfidentialStaffReport(CSPVIIStaffReport)atI7.SeealsoOnthePathtoSunShotat911;New
SolarSystemat122133.

107

ThetwoU.S.CVDinvestigationsledtotheimpositionofdutiesonimportsfromChina
designedtoremedytheunfairtraderesultingfromthesubsidiesdiscussedabove.14
Nonetheless,Chinesefirmshavetakendeliberatestepstoavoidtheseremediesandsimilar
remediesinEurope,firstbyusingcellsproducedinTaiwanwhilecontinuingtoassemble
modulesinChina,andthenbyinvestingheavilyinproductionelsewhereinAsia,particularly
SoutheastAsiaandSouthKorea.15AbruptchangesinChinesegovernmentsupportforPV
deploymentintheirdomesticmarketalsocanhavesubstantialindirecteffectsthroughoutthe
globalmarket,withreductionsinsupportleadingtorapidincreasesinavailableglobalsupply.
Forexample,theDecember2015announcementthattheChinesefeedintariffwouldbe
reducedforprojectscompletedafterJune2016causedamassiveincreaseinChinesePV
installationsinthefirsthalfof2016andacorrespondingdeclineininstallationsinthesecond
halfof2016,whichaffectedglobalpricesandexports.16
RespondentsinthisinvestigationhavestatedthatChinesePVinstallationswillcontinue
toincreasesubstantially,leadingtoagreaterorientationoftheChineseindustrysshipments
towardChinasdomesticmarketasopposedtoexportmarkets.17However,evenassumingthat
demandinChinawillcontinuetoincrease,Chinesemanufacturingfirmsareprojectedto
substantiallyincreasecellandmodulecapacityinamannerthatwillfaroutstripdomestic
demand.18WithoutafocusedandcoordinatedChinesegovernmentefforttoreduce
subsidizationandreinincapacitygrowth,theglobalmarketwillcontinuetobeartheweightof
Chineseoversupply.

ii. DemandforCSPVmodulesispricesensitiveduetotheavailabilityof
lowcostalternativestosolarenergy

DemandforCSPVmodulesisdrivenbynewsolarinstallationsgeneratingenergyfor
residential,nonresidential,andutilitycustomers.Gridconnectedhouseholds,businesses,and
utilitiescanuseorproduceelectricityfromawidevarietyofalternativesources,rangingfrom

14
CSPVII&DMemorandum;CSPVIII&DMemorandum;77Fed.Reg.73017(Dec.7,2012);80Fed.
Reg.8592(Feb.18,2015);CSPVIStaffReportatI6;CSPVIIStaffReport)atI7.
15
CR/PRatTableIV17andTableIV18(showingChinesecompaniesrapidincreasesincelland
moduleproductioncapacity,particularlyinSouthKoreaandMalaysia);SolarWorldPrehearingInjury
Briefat18,8085;SunivaPosthearingInjuryBrief,Exhibit1at40;SolarWorldPosthearingInjuryBrief,
Exhibit1at92andExhibit40;SolarWorldPosthearingRemedybrief,Exhibit2at72andExhibit43.
16
CRatIV3335;PRatIV2022.Afeedintariffoffersaguaranteeofpaymentstosolarelectricity
developersfortheelectricitytheyproduce.PaymentsarebasedonacertainpriceperkW/houratwhich
electricityispurchased,typicallyaspartofalongtermagreementsetoveraperiodof1520years.CR
atV54;PRatV34.Therefore,theannouncementin2015thatprojectscompletedafterJune2016
wouldreceivealowerguaranteedrateofreturnledtoaconcentrationof2016Chineseinstallations
withinthefirsthalfofthatyear.CRatIV3435;PRatIV2223.Asaresult,therewerefarfewer
Chineseinstallationsinthesecondhalfoftheyear,whichcorrespondedwithadeclineinU.S.andglobal
prices.CR/PRatFigureV13;SolarWorldAG,AnnualGroupReport2016,3132(EDISDoc.619376).
17
CCCMEPosthearingRemedyBriefat1012;SEIAPosthearingRemedyBrief,AppendixAat6364.
18
SEIAPosthearingRemedyBrief,Exhibit32.

108

traditionalfossilfuelstootherformsofrenewableenergysuchaswindpower.Thereare
segmentsofthemarketthatprefersolarenergyfornoneconomicreasonsorareencouraged
touseitasaresultofrenewableportfoliostandardsandotherprograms.19However,
aggregatedemandforsolarenergy,andbyextensionCSPVmodules,isprimarilyand
increasinglydependentonthedegreetowhichthelongtermcostsofproducingsolar
electricityarecompetitivewiththoseofalternativesources.
Between2012and2016,thecostofinstallingnewPVsystemsfellby25.5percentfor
theresidentialsectorandby48.1percentfortheutilitysector.20Thesecostsfellforanumber
ofreasons,particularlydecliningcostsofmodulesandbalanceofsystem(BOS)hardware,but
alsofallingsoftcostssuchaslaborandoverhead,greatermoduleefficiencydueto
technologicalimprovements,andlargerPVinstallationsbenefitingfromeconomiesofscale.21
Inadditiontoupfrontinstallationcosts,longtermoperationalcostshavecontinuedtodecline
duetoimprovementsinmoduledurability,higherbalanceofsystemreliability,andlower
operationalandmaintenanceexpenses.22
ThestrikingdeclineinPVsystemcostshasmadesolarenergycompetitivewithother
typesofenergyforpricesensitivecustomers,particularlyintheutilitysegmentofthemarket.
Therelativecostsofproducingdifferenttypesofenergycanbemeasuredbythelevelizedcost
ofelectricity(LCOE),whichistheperkilowatt(kW)hourcostofbuildingandoperatinga
powergeneratinginstallationoveranassumedfinanciallife.23TheLCOEforanewcombined
cyclenaturalgasfiredpowerplant,atabout45centsperkW/hour,hassetthebenchmarkfor
lowcostenergywithintheutilitysegmentofthemarket.24Onshorewindinstallations,which
benefitfromfederaltaxcredits,canhaveanLCOEofjustover3centsperkW/hour.25By
comparison,theLCOEforsolarPVsystems(incorporatingfederaltaxcredits)wasjustover5

19
CRatV5256;PRatV3135;InjuryHearingTr.at253254(Grace).
20
Basedonmedianinstalledcosts.Barbose,GalenandNamDarghouth,TrackingtheSun10:The
InstalledPriceofResidentialandNonResidentialPhotovoltaicSystemsintheUnitedStates,Berkeley,
CA:LawrenceBerkeleyNationalLaboratory,2017,DataFileFigure7andp.13(EDISDoc.627085fileIDs
1238007(at73)and1238011(at253))(TrackingtheSun);Bolinger,Mark,JoachimSeel,andKristina
HamachiLaCommare,UtilityScaleSolar2016:AnEmpiricalAnalysisofProjectCost,Performance,and
PricingTrendsintheUnitedStates,Berkeley,CA:LawrenceBerkeleyNationalLaboratory,DataFile,
Figure8(EDISDoc.623498fileID1229690at245).Nonresidentialsystemcostsalsosubstantially
declined,thoughatdifferentratesdependingonthesize.Id.
21
RanFu,DavidFeldman,RobertMargolis,MikeWoodhouse,andKristenArdani,U.S.Solar
PhotovoltaicSystemCostBenchmark:Q12017,NREL,3940,44(EDISDoc.627084fileID1238001at59)
(U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017).
22
U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017at4142.
23
CRatV5859;PRatV37.
24
CR/PRatTableV25.AhearingwitnessfromBloombergNewEnergyFinancestatedthatthe
operatingcostofanefficientnaturalgaspricewasroughly$2030perMW/hour,or23centsper
kW/hour.InjuryHearingTr.at252253(Grace).
25
CR/PRatTableV25.

109

centsperkW/hour,andwaslowerinmanylocations.26Solarenergyisthereforeessentially
costcompetitivewithotherformsofelectricitygeneration,whichhassupportedrobustgrowth
inutilityinstallations.27Forthefirsttimein2016,solarpoweraccountedforthelargestshare
ofnewU.S.electricitygeneration,surpassingnaturalgas,coal,andwindwith39percentof
totaladdedcapacity.28
Similardynamicshaveledtoincreaseddemandforsolarenergyintheresidentialand
nonresidentialsegmentsofthemarket.ThesesmallerPVsystemsdonotbenefitfromthe
sameefficienciesandeconomiesofscaleasintheutilitysector,andthereforehavehigher
levelizedcostswithinthe611centperKW/hourrange.29However,manyofthesecustomers
areabletorealizesavingsbyoffsettingthecostofusinggridprovidedelectricitywith
householdgeneratedenergy.30Accordingtooneestimate,by2020,residentialconsumersin
37statesandtheDistrictofColumbiawillseenetsavingsasaresultofnewrooftopsolar
installations.31
TherapidgrowthindemandforPVinstallationsoverthe2012to2016periodwas
driveninlargepartbytheseconsistentcostdeclines,whichincreasedcompetitivenessofsolar
energywithothertypesofelectricity.32Asaresult,mostsolarenergydemandisnowdrivenby
costconsciouspurchaserschoosingbetweencompetingenergyalternativesasopposedto
purchasersinterestedinsolarenergyfornoneconomicreasons.33Thecurrenthighlevelof

26
CR/PRatTableV25;U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017at47(showing
differentutilityPVsystemLCOEacrossmanyregions,notincludingInvestmentTaxCredit)andAppendix
B(showingLCOEbetween2.7and4.0centsperkW/houracrossthreedifferentlocations).
27
InjuryHearingTr.at254255(Grace);BloombergNewEnergyFinanceInjuryHearingPresentation,
Slide9(EDISDoc.620615at99).
28
CR/PRatFigureV3.
29
U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017atAppendixB.
30
Netmeteringallowsresidentialandnonresidentialcustomersthatgeneratetheirownsolar
electricitytoreceivecreditforexcesselectricityfedintothegrid.Insomestates,utilitiesmayoffernet
meteringprogramsvoluntarilyorasaresultofregulatorydecisions.CRatV55;PRatV35.
31
GTMResearchRemedyHearingPresentation,Slide13(EDISDoc.624718at145).
32
SEIAPosthearingRemedyBrief,Exhibit32(GTMResearchsactualandprojectedPVinstallations,
byyear).Between2012and2016,apparentU.S.consumptionofCSPVproductsincreasedby***
percent.CR/PRatTableIV3.ApparentU.S.consumptiongrewsubstantiallyineachyearoftheperiod
ofinvestigation,andspikedin2016duetotheanticipatedexpirationoftheFederalInvestmentTax
CreditinDecember2016,althoughtheprogramwassubsequentlyextendedforseveralmoreyears.CR
atV2;PRatV2;CR/PRatFigureV1andTableV21.Bothpetitionersandrespondentsagreethatthe
mostrelevantandreliableprojectionsanticipatethatin2017and2018demandforCSPVproductswill
dipbelow2016levels,butgrowthwillresumein2019andafterwards.SeeSolarWorldsPrehearing
RemedyBriefat23;SolarWorldsPosthearingRemedyBriefat13;TranscriptofRemedyHearingat215
(Prusa).
33
BloombergNewEnergyFinanceestimatesthat40outof52GWofprojectedU.S.PVinstallations
from2018to2021willbediscretionary,andanadditional7GWwillbeagnosticbetweendifferent
typesofrenewableenergy,includingwindpower.GTMResearchestimatesthat72percentofutility
solarprojectsunderdevelopmentaredrivenbyeconomicfactors,withtheremainingprojectsdrivenby
(Continued)

110

demandforsolarenergyremainsheavilydependentonwhethersolarenergyproducers
achieveandmaintaingridparitywithotherrenewableandconventionalenergysources.
ManyofthesamefactorscontributingtothedeclineinPVinstallationandoperational
costsfrom2012to2016willcontinuetopushsolarenergycostslowerinthefuture;34however,
plannedphasedownsandexpirationsoffederalandstateincentiveprograms,suchasthe
federalInvestmentTaxCredit,willoffsetthesecostdeclines.35Therefore,anyshocktothe
marketthatcausesthecostofsolarenergytoriseabovecostbenchmarkssetbyotherenergy
sourceswilllikelyleadtoasharpreductionindemandforsolarenergyandthecapital
equipmentusedtoproduceit.
PetitionersassertthatchangesinthepriceofCSPVmoduleswillhavelimitedeffectson
demandforCSPVproductsbecausemodulesaccountedforonlyasmallshareofthetotalcost
ofinstalledPVsystemsin2016.36Thisassertionisnotsupportedbyevidenceontherecordin
thisinvestigation.CSPVmodulesaccountedforbyfarthelargestsinglehardwarecomponent
ofPVsystemcostsin2016,representingapproximately42percentofcostsforutilityprojects,
30percentofnonresidentialprojects,and22percentofresidentialprojects.37Therefore,any
governmentactionthatcausesasubstantialincreaseinmodulepriceswouldcausethelargest
componentofinstallationcoststorise,whichwouldcausedemandforsolarinstallationsusing
theseproductstodecline.Underthesamedynamic,thedeclineinmodulepricesoverthe

(Continued)
policy.BloombergNewEnergyFinanceInjuryHearingPresentation,slide9;GTMResearchRemedy
HearingPresentation,Slide12.
34
InternationalTechnologyRoadmapforPhotovoltaic(ITRPV),2016Results,March2017,p.40
(EDISDoc.623322fileIDat1226593);TheSunShotInitiatives2030Goal:3perKilowattHourforSolar
Electricity,December2016(EDISDoc.627084fileID1238001at468);RemedyHearingTr.at141142
(Szamosszegi).
35
The30percentinvestmenttaxcreditwilldeclineto26percentin2020and22percentin2021.
After2021,residentialprojectsreceivezerotaxcreditwhilenonresidentialandutilityprojectsreceivea
10percentcredit,thoughthestartofconstructionclausewillallowprojectsstartedpriortotheendof
2021toreceivethehighercreditifcompletedbytheendof2023.CR/PRatTableV21.Stateandlocal
governmentincentiveshavealsodeclinedoverthe2012to2016period,particularlyfornetmetering
programs.CR/PRatTableV22;SEIAPosthearingRemedyBrief,AppendixAat2729.
36
RemedyHearingTr.at112113(Szamosszegi),143144(McConkey),146147(Kaplan);Capital
TradeRemedyHearingPresentationat38;SunivaPosthearingRemedyBrief,Exhibit5at1214.
37
U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017atAppendixA.Similarly,U.S.producers
reportedthatCSPVcells(notassembledintomodules)accountedfor30percentofcostsforutility
projects,18percentofnonresidentialprojects,and19percentofresidentialprojects.CR/PRatTableV
2.ThecostofCSPVmodulesasashareofPVsystemcostshasdeclinedsubstantiallyovertime,
particularlyforutilityPVinstallationswhereoverheadcostsaregenerallylowerthaninothermarket
segments.ThesedeclinesoccurredasthepriceofCSPVmodulesfelltoagreaterextentthanother
costs,whichalsogenerallydeclined.U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017at
AppendixA.

111

2012to2016periodwasamajorcontributortothedecliningcostofandrisingdemandfor
solarenergy,particularlyfrom2012to2013andfrom2015to2016.38
TheextenttowhichfuturechangesinCSPVmodulepricesaffectdemandforsolar
energywillbesomewhatmitigatedbytheavailabilityofthinfilm,analternativePVtechnology,
asasubstituteproduct.LargeU.S.andforeignproducersofthinfilm(particularlyFirstSolar
andSolarFrontier)supplytheU.S.market.FirstSolariscurrentlyaddingadditionalcapacityto
supplytheU.S.andglobalmarkets.39However,thinfilmcapacityislikelytocontinueto
accountforaminorityshareoftotalPVinstallationsevenwithcapacityadditions.40Inaddition,
thedegreetowhichthinfilmproductscansubstituteforCSPVmodulesisgenerallydependent
onthemarketsegment,orevenspecificproject,beingsupplied.Purchasersrespondingtothe
Commissionsquestionnaireprovidedmixedresponsesregardingthedegreetowhichthinfilm
canbesubstitutedforCSPVproducts.41ThinfilmcanbesubstitutedforCSPVmodulesinmany
utilityapplications,butthereislesssubstitutabilitywithinresidentialandnonresidential
applications.42
Insummary,anygovernmentactionthatleadstosubstantiallyhigherpricesforCSPV
moduleswouldlikelycausecostsensitiveconsumers,whichnowaccountforthemajorityof
themarket,tofindalternativesforthosemodules.Asaresult,solarenergyproductionwould
likelydeclinerelativetotraditionalandotherrenewableformsofenergy.Therefore,demand
forCSPVmodulesishighlyreactivetochangesinprice.

38
CRatV14;PRatV8.U.S.producersreportedthatthedecreaseinthepriceofsolargenerated
electricityhasbeendrivenbyCSPVmarketcompetition.CRatV63;PRatV42.
39
EnergyAcuity,2016SolarReport:UtilityScale,2017,p.10(EDISDoc.623321fileID1226579at
76)(2016SolarReport:UtilityScale);SeekingAlpha,FirstSolar(FSLR)Q32017ResultsEarningsCall
Transcript,October26,2017(EDISDoc.627085fileID1238004at27)(FirstSolarQ32017Results);
SolarFrontier,SolarFrontierAmericasEntersInto150MWSolarModuleSupplyAgreementWith
CypressCreekRenewables,Newsrelease,March29,2016(EDISDoc.627084fileID1237995at57);
SolarFrontier,SolarFrontierAmericasNearsCompletionof106MWofUtilityScaleSolarProjectsin
SouthernCalifornia,Newsrelease,December13,2016(EDISDoc.627084fileID1237995at61).
40
Petitionersassumethattherewillbe0.9GWofthinfilmin2018inresponsetoarestrictivetrade
remedy.SolarWorldPrehearingRemedyBriefat16.Respondentsestimatethattherewouldbe3GW
ofthinfilmintheU.S.marketin2018.HearingTr.at217(Prusa).In2016,installationsofFirstSolars
thinfilmmodulesintheUnitedStatestotaled1.7GW.8minuteenergyPosthearingInjuryBrief,Exhibit
16.FirstSolarisprojecting2to3GWofglobalproductioncapacityin2018,3.5GWin2019and4GWin
2020.AportionofFirstSolarsproductionduringtheseyearsisbookedforprojectsoutsidetheUnited
States.FirstSolarQ32017Results.SolarFrontiersproductioncapacityis1.1GW.SolarFrontier
Website,http://www.solarfrontier.com/eng/company/production/index.html(accessedOctober23,
2017)(EDISDoc.627085fileID1238007at53).
41
CRatV19;PRatV12.
42
FirstSolarwasthelargestindividualPVmodulesuppliertotheutilitysegmentintheU.S.in2016.
However,thinfilmaccountedforlessthan1percentofinstallationsintheresidentialandnonresidential
segments.2016SolarReport:UtilityScaleat10;TrackingtheSunDataFile.

112

iii. ImportssupplytheU.S.market,andU.S.capacitywillremainlimited
withoutsubstantialinvestment

In2009,thefirstyearoftheperiodexaminedinCSPVI,theU.S.industrywasthelargest
sourceofCSPVproductstotheU.S.market.43Atthattime,theU.S.marketforCSPVproducts
wasconsiderablysmallerthanduringtheperiodcoveredbythisinvestigation,andwas
characterizedprimarilybysalestotheresidentialandnonresidentialsegments.44Most
customerspurchasedrenewableenergyequipmentfornoneconomicreasons,suchasgrowing
consumerinterestinsolarpowerandtheexistenceofgovernmentrenewableenergy
mandates.45Althoughsalestotheutilitysectorweregrowingrapidly,thesewereprimarily
drivenbystaterenewableportfoliostandardrequirements.46
TheCSPVproductmarkethasgrownsubstantiallysincethattime,particularlywithinthe
pastfiveyears.47Althoughdemandisstillpartiallysupportedbyconsumerinterestin
renewableenergyandgovernmentincentiveprograms,growthisnowdrivenprimarilybythe
increasingeconomicattractivenessofsolarenergy,asdiscussedabove.48ThedropinCSPV
modulecostswasamajorfactordrivingtheincreasedcostcompetitivenessofsolarenergyand
thesurgeindemandforCSPVproducts.AsstatedintheViewsoftheCommissiononInjury,
theavailabilityoflowpricedimportsofCSPVmoduleswastheprimaryreasonforthedeclinein
CSPVmodulepricesintheUnitedStates.However,decliningmodulepricesalsoledto
consistentunprofitability,underinvestment,andsubstantiallossofmarketshareforthe
domesticindustry.Inparticular,domesticproducerswereunabletoachievelevelsofcapacity
necessarytocompeteformostutilityprojects,evenasthismarketsegmentbecamethelargest
sourceofgrowth.Asaresult,thedomesticindustryaccountedforatinyportionofthemarket
forCSPVproductsby2016.49
Asaresultoftheseriousinjurycausedbyimports,theexistingU.S.industrywilllikelybe
abletosupplyonlyasmallshareoftheU.S.marketundercurrentdemandprojections,evenif
importssubstantiallydeclineduetoarestrictivetraderemedy.In2016,thedomestic
industrysreportedCSPVmoduleproductionwasonly669MWanditscapacitywas1.25GW,
equivalentto***percentand***percentofapparentU.S.consumption,respectively,inthat
year.50However,eventhesevolumessubstantiallyoverstatetheindustrysabilitytoservethe
U.S.marketduetotheindustryscomparativelysmallCSPVcellproductioncapacity.The
industrysCSPVcellproductionwas***andcapacitywas***in2016.51Inaddition,mostof

43
CSPVIConfidentialViewsoftheCommission(CSPVIViews)at3738.
44
CSPVIStaffReportatFigureII1(showing195MWofshipmentstotheresidentialsectorin2009,
241MWtothenonresidentialsector,and30MWtotheutilitysector)andTableC7.
45
CSPVIViewsat3236.
46
CSPVIStaffReportatII3.
47
CR/PRatTableC1b.
48
BloombergNewEnergyFinanceInjuryHearingPresentation,slide9;GTMResearchRemedy
HearingPresentation,Slide12.
49
CR/PRatTableC1b.
50
CR/PRatTableIII7andTableC1b.
51
CR/PRatTableIII4.

113

theindustrysexcesscellproductioncapacityin2016wastheresultofMissionSolarceasing
commercialproductioninthatyearandTeslaproducingonlyforR&Dpurposes.52Notcounting
thesetwofirmstransitioningoperations,theU.S.industryhadminimaladditionalcapacityto
producecellsin2016.53
Domesticmodulecapacityhasconsistentlyremainedunderutilizedduetotheinability
ofmoduleproducers,particularlythosewithoutintegratedcellproduction,tosourcesufficient
volumesofcells.Domesticintegratedcellproducershavenevermadecommercialquantities
ofcellsavailabletoindependentmoduleproducers.54Independentmoduleproducersand
evenintegratedproducershavethereforehadtorelyonimportedcellsinordertoproduce
modulesdomestically.55ManyindependentmoduleproducersrespondingtotheCommissions
questionnaireindicatedthattheydidnotsupportthesepetitions,orexpressedconcern
regardingthedegreetowhichanysafeguardactionwouldrestrictCSPVcellimports.56
PetitionersprojectthattheU.S.industrywillsubstantiallyincreaseitsCSPVcell
productionin2018andthereafterinordertosupplythelargemajorityofdomesticmodule
production,includingindependentmoduleproducers.57Theyprojectthatdomesticmodule
capacitywillincreasefrom1.25GWin2016to1.75GWby2018duetoanexpectationthat
TeslawillsubstantiallyincreaseCSPVmoduleproductioninthatyear.58Inaddition,petitioners
estimatethatdomesticcellcapacitywillsubstantiallyincreasefrom***in2016to***by
2018.59Evenundertheseoptimisticestimates,domesticproducerscellcapacitywouldstill
accountforonlyasmallminorityofexpectedU.S.PVinstallationsin2018andthereafter.60
PetitionersmodestestimatesforfutureCSPVcellproductionarealsolikely
overstated.61Twoofthefirmsincludedinpetitionersprojections,MissionSolarandSuniva,
werenot,infact,producingCSPVcellsatthetimeofthisinvestigation.MissionSolarceased
cellproductionin2016andhasnostatedplanstorestarttheseoperations.62Sunivaceased
operationsafterfilingforprotectionunderChapter11ofthebankruptcylawsandhaslaidoff

52
CR/PRatTableIII4;CRatIII10andIII16;PRatIII5andIII9.
53
CR/PRatTableIII4.
54
CSPVIStaffReportatTableIII6;CSPVIIStaffReportatTableIII7;CR/PRatTableIII9.
55
CR/PRatTableII7.
56
Seee.g.,MissionSolarPosthearingRemedyBriefat28;TeslaPosthearingRemedyBriefat23,8
9;AuxinSolarPosthearingRemedyBriefatI812;CR/PRatTableI2.
57
SolarWorldPrehearingRemedyBriefat17;SunivaPosthearingRemedyBrief,Exhibit5at18;
RemedyHearingTr.at172(Card).
58
SolarWorldPrehearingRemedyBriefat15,17.
59
SolarWorldPrehearingRemedyBriefat17.
60
ComparetoCR/PRatTableC1b(apparentU.S.consumption)andSEIAPosthearingRemedyBrief,
Exhibit32(actualandprojectedPVinstallations,byyear).
61
For2018,SolarWorldassumesthatthedomesticindustrywillhavethesamecellcapacityas
presentedinthestaffreport,whichcontainsinformationprovidedinresponsetotheU.S.producer
questionnaire,inadditionto300MWofcellcapacityaddedbySunivainlate2016and500MWofcell
capacityforTesla/Panasonic.SolarWorldPrehearingRemedyBriefat17;CR/PRatTableIII4.Seealso
SunivaPosthearingRemedyBrief,Exhibit5at18.
62
CRatIII10;PRatIII5;MissionSolarPosthearingRemedyBriefat8.

114

itsworkforce.63AlthoughSunivareportsthatitcouldrestartoperationsinafewmonths,this
wouldbecontingentuponthecompanyemergingsuccessfullyfrombankruptcywithsufficient
financingtorestartcommercialoperations,gainingnewcustomers,andhiringafullnew
workforce.64Collectively,thesetwofirmsaccountfor***ofpetitionerscellcapacity
projectionsfor2018.65Inaddition,Teslahasstatedthatitwilllikelyproduce***ofCSPVcells
thatpetitionersassertedTeslawouldproducethatyear.66AlthoughTeslahasambitiousplans
toincreaseitsCSPVcellproduction***.67
Aspetitionersandrespondentsrecognize,U.S.producerswouldhavetosubstantially
increasecapacityinordertocompetesuccessfullywithimportsafteranysafeguardactions
terminate.68Producerswithhighercapacityandproductiveoutputareabletoachievelower
fixedcostsonaperunitbasis,obtainlowerpricesforrawmaterials,andoperatemore
efficiently,andarethereforeinabetterpositiontocompetemoreeffectivelyagainstlow
pricedcompetitors.69Highercapacityalsoallowsproducerstocompeteforutilityprojects,
particularlythelargestinstallationswhichrequiresubstantialvolumesonrelativelyshort
timetables.70Inaddition,thedomesticindustrywouldhavetobeabletosupplysufficient
quantitiesofthetypesofproductsdemandedbyutilitycustomers,including72cellCSPV
modules.71
AttheCommissionshearingonremedy,theCEOofSolarWorldstatedthathisvisionfor
ahealthyU.S.industrywouldincludefivetosixCSPVproducerseachwithoneGWormoreof
integratedcellandmodulecapacity.72Inordertoachievethesecapacitylevels,morethan***
theamountofanycurrentU.S.producer,newandexistingproducerswouldhavetoattract
massiveamountsofadditionalinvestment.73Petitionersassertthatseveralforeignfirmswill

63
CRatIII15;PRatIII8;HearingTr.at9596(Card).
64
CRatIII1415;PRatIII8;SunivaPosthearingRemedyBrief,Exhibit5.
65
SolarWorldPrehearingRemedyBriefat17;CR/PRatTableIII4.
66
TeslaPosthearingRemedyBriefat16;SolarWorldPrehearingRemedyBriefat17;CR/PRatTable
III4.
67
TeslaPosthearingRemedyBriefat1516.
68
SolarWorldPosthearingRemedyBrief,Exhibit1at6;RemedyHearingTr.at72,122123(Stein),
140(Brightbill),359(Cornelius);SunivaPosthearingRemedyBrief,Exhibit5,AttachmentBat8;SEIA
PrehearingRemedyBriefat3,51.
69
RemedyHearingTr.at122(Stein),350351(Fenster);NewSolarSystemat116117.
70
InjuryHearingTr.at260(Cornelius),334(Shugar).AccordingtotheU.S.EnergyInformation
Administration(EIA),theaverageutilityprojectincreasedfrom10MWin2014tomorethan17MWin
2016,andaccordingtorespondentSEIA,82percentofutilityinstallationsin2016weregreaterthan20
MW,and13percentwerelessthan10MW.CRatV3atn.10;PRatV2atn.10.
71
HearingTr.at174,217(Messer),259(Cornelius),278(Dougan).In2016,U.S.producers
accountedfor***percentof72cellmodulessoldintheUnitedStates.
72
RemedyHearingTr.at72,122123(Stein).
73
SolarWorldestimatesthataddinganadditional***.SolarWorldPosthearingRemedyBrief,
Exhibit1.AnexecutivefromNRGRenewablesreferencedthatbuildinganewmanufacturingfacility
wouldrequire$500millionover18months.HearingTr.at343(Cornelius).

115

startproducingCSPVproductsintheUnitedStatesifarestrictiveremedyisimposed.74
However,almostallofthesefutureinvestmentsreferencedbypetitionerswouldbeinCSPV
modulemanufacturing,whichwouldnotaddresstheshortageofU.S.producedCSPVcellsor
resultinthecreationofadditionallargeintegratedproducers.75OtherthancurrentU.S.
producers,nofirmhasmadeanyrepresentationbeforetheCommissionthatthatitwould
investinorproduceCSPVproductshereintheUnitedStates.Thelackoftangibleinterest
demonstratedbynewsuppliersdetractsfrompetitionersargumentsthattherewillbealarge
domesticCSPVindustrywithmultipleintegratedmanufacturerswithintheforeseeablefuture.
Asambitiousastheyare,currentU.S.producersinvestmentplanswouldcontinueto
leavemostofthemarketreliantonimports,evenifthosefirmswereabletoattractsufficient
capital.SolarWorldandSunivaeachstatedthattheyanticipate***additionalCSPVcelland
modulemanufacturingcapacityasaresultofarestrictivesafeguardaction,with***overthe
courseoftheirproposedfouryearadjustmentperiod.76However,SolarWorldplansto
continuetoserveprimarilynonresidentialandresidentialcustomersdespitetheutilitysegment
beingbyfarthelargestmarketsegment.77Asdiscussedabove,Sunivaiscurrentlyheavilyin
debtandworkingthroughChapter11bankruptcyproceedings,andthereforeitsabilityto
attractadditionalfinancingforambitiousexpansionplansisuncertain.78Tesla,whichopposes
importrestrictions,anticipatesproducing***ofCSPVcells,***ofsolarrooftiles,and***of
CSPVmodulesby2019.Teslaemphasizes,however,thatit***.79Likewise,alloftheother
currentU.S.producersthatidentifiedadditionalinvestmentswereindependentmodule
producersthatrelyprimarilyonimportedCSPVcells.80
Inlightoftheseconsiderations,itisclearthattheU.S.marketwillrelyheavilyon
importedCSPVmodulesthroughoutthenextseveralyearsatleast.Eventhemostoptimistic
U.S.productiontargetsforCSPVmoduleswouldnotleadtoU.S.producersaccountingformore
thanasmallshareoftotalsalesinthemarket.Inaddition,U.S.productionofCSPVmodulesat
muchhigherlevelswillrequiresubstantialvolumesofimportedCSPVcells.

74
SolarWorldPosthearingRemedyBrief,Exhibit2at68.SolarWorldsassertionsareprimarily
derivedfromasinglenewsarticlereferringtoseveralforeignCSPVcellandmodulemakersthatsaid
thattheywereexploringoptionsforU.S.productionwithoutmakinganyconcretecommitments.
SolarWorldPrehearingRemedyBrief,Exhibit1.SolarWorldalsodrawsonseveralothervaguesourcesof
information,including***aswellasaforeignproducersshortpressreleaseannouncinganundefined
investmentintheUnitedStates.SolarWorldPosthearingRemedyBrief,Exhibits11and25.
75
SolarWorldPosthearingRemedyBrief,Exhibit2at68.
76
SolarWorldPosthearingRemedyBrief,Exhibit1;SunivaPosthearingRemedyBrief,Exhibit5at
AttachmentB.
77
SolarWorldPosthearingRemedyBrief,Exhibit1at1112.
78
Sunivastatedthatitcannotsubmitaformaladjustmentplanbecauseitissubjecttobankruptcy
courtsupervision,andisintheprocessofnegotiatingwithexistingcreditorsregardingthetermsofa
potentialplanofreorganization.SeeSunivaPosthearingRemedyBrief,Exhibit5,AttachmentBat1;
RemedyHearingTr.at118120(Card).
79
TeslaPosthearingRemedyBriefat1516.
80
CR/PRatTableII7andTableD2.

116

iv. Thebroadersolarindustryisamajorsourceofnewemployment

Despiteproducingonly1.4percentofnetU.S.electricitygenerationin2016,solar
poweraccountedforthelargestshareofnewU.S.electricitygenerationin2016,with39
percentofnewgeneratingcapacity.81Becauseofthisrapidgrowth,thebroaderU.S.industry
hasdevelopedsupplychainstosupporttheexpandingdeploymentofsolarenergyacrossthe
residential,nonresidential,andutilitysectors.Asaresult,thesolarenergysectorisavibrant
sourceofnewemploymentintheUnitedStates.AccordingtotheU.S.EnergyInformation
Administration(U.S.EIA),therewere373,807U.S.workersinJanuary2017thatspentsome
portionoftheirtimeworkingtomanufacture,install,distribute,orprovideprofessional
servicestosolartechnologiesacrossthenation.82
Mostemploymentwithinthesolarenergysectorislocatedattheendofthevalue
chain,specificallyininstallationanddevelopmentofutility,residential,andnonresidential
projects.Therewereseveralthousandresidentialandnonresidentialsolarinstallingfirmsin
theUnitedStatesin2015.Althoughafewinstallersheldsubstantialmarketshares,most
installersweresmallbusinesseswithtenorfeweremployees.83Theutilitysegmentismore
concentrated,butissimilarlydiverse,withavarietyoffirmsengagedinprojectdevelopment
and/orengineering,procurement,andconstruction(EPC).84Solarinstallersincludemanytypes
ofworkers,butareprimarilythoseinthebuildingtrades,suchaselectriciansandconstruction
laborers.85Therewereanestimated***workersspecificallyinCSPVinstallationandproject
developmentintheresidential,nonresidential,andutilitysectorsin2016.86
ThesupplychainincludesproducersofthecapitalequipmentusedinPVinstallations,
suchasCSPVcellsandmodulesbutalsomanyotherBalanceofSystem(BOS)hardware
components,suchasrackingandmountingequipmentformodules,trackingsystemsforusein
manyutilityprojects,andinvertersforconvertingdirectcurrentproducedfromthemodules
intogridusablealternatingcurrent.87InresponsetotheCommissionsU.S.producer
questionnaires,manufacturersreportedthattherewere***workersincellproduction
operationsand1,253workersinmoduleassemblyin2016.88Inadditiontotheseworkers,
therewereanestimated***workersintheBOShardwaremanufacturingindustriessupporting

81
CR/PRatFigureV2andFigureV3.
82
U.S.EIA,U.S.EnergyandEmploymentReport,January2017at37(EDISDoc.627084fileID
1238001).InadditiontoemploymentintheCSPVsupplychain,EIAsfigureincludesemploymentacross
otherphotovoltaicandConcentratingSolarPower(CSP)technologies.Id.
83
CRatI3940;PRatI2930;SEIAPrehearingInjuryBrief,Exhibit6(SolarJobsCensus)at17.
84
CRatI41;PRatI30.
85
SolarJobsCensusat17.
86
Thisestimateisbasedonfirmlevelandprojectlevelemploymentinformationontherecordof
thisinvestigation.Employmentinformationwasavailableformorethan80percentofCSPVinstallations
in2016.Theremainingemploymentwasestimatedbasedonthelaborintensityofinstallationsby
marketsegment(distributedandutility)forthemorethan80percentofprojectsforwhichinformation
wasavailable.
87
CRatI17,33;PRatI1213,2425;SolarJobsCensusat23.
88
CR/PRatTableIII16andTableIII17.

117

CSPVinstallationsspecificallyin2016,almost***timesthenumberemployedincelland
moduleproduction.89
ThousandsofservicesworkersalsoworktosupportCSPVdeployment.Theseinclude
employeesatwholesaleandretailtradeestablishmentsengagedinsellingsolarandother
ancillaryservicestocustomers,aswellasdistributorsthatwarehouseanddistributeU.S.and
foreignmadesolargoodstoinstallers.90Inaddition,thereareanumberofprofessional
servicesworkersengagedinR&Dactivities,financingprojects,andtraining.91
Furtherupstream,thereareanumberofsuppliersoftherawmaterialsusedtoproduce
CSPVequipment,includingpolysiliconingotsandwafersusedincellsaswellasglass,
aluminum,wire,andpasteusedtoproducefinishedmodules.92Manufacturersofthesegoods
arerelianttoadegreeonCSPVproductmanufacturingintheUnitedStates.93However,many
upstreamproducersalsoexportmaterialstoforeignCSPVcellandmodulemanufacturers,
includingthosethatexportCSPVproductstotheUnitedStates.94Therefore,whilesome
upstreamsupplierswouldbepositivelyaffectedbyimprovementsindomesticproductionof
CSPVproductsasaresultofimportrestrictions,thoseintegratedintoglobalsupplychains
wouldbenegativelyaffected.
AnygovernmentactioncausingasharpdeclineindemandforCSPVproductswilllikely
leadtoproportionallyfewerfirmsandworkersengagedinmanufacturing,selling,researching,
andinstallingequipmentusedinsupportofCSPVdeployment.AdeclineinCSPVdeployment
maybemitigatedsomewhatbyanincreaseinthinfilmPVdeployments,whichmaypartially
limitjobdisplacement,particularlyinthesectorssupportingutilityprojects.However,the
overallemploymentwithinthegreaterPVindustryislikelytobenegativelyaffectedbyany
substantialdeclineinCSPVdemand,giventhedominantshareofallPVprojectswhichcurrently
useCSPVproducts.

89
Thisestimateisbasedonavailableinformationontherecordofthisinvestigationforemployment
atracking,mounting,andtrackingmanufacturersandtheirsuppliers,aswellasemploymentatU.S.
inverterandcombinerboxmanufacturers.Thisdoesnotincludeallbalanceofsystemcomponents.
Employmentwasadjustedtoexcludethinfilmrelatedmanufacturing.
90
SolarJobsCensusat27.
91
SolarJobsCensusat33.ThePresidentandCEOofSunPowerstatedthatalthoughhisfirm
producesCSPVproductsoverseas,itemploysoveronethousandpeopleintheUnitedStates,withmany
engagedinrobustR&Dinnovation.InjuryHearingTr.at247(Werner).
92
CRatI2528,3132;PRatI1821,24;PosthearingRemedyBriefoftheU.S.PolysiliconIndustry;
LettertotheCommissionfromDuPontPhotovoltaics&AdvancedMaterials;InjuryHearingTr.at131
135(Byerson);RemedyHearingTr.at9598(Ulbrich).
93
InjuryHearingTr.at131135(Byerson);RemedyHearingTr.at9598(Ulbrich).
94
PosthearingRemedyBriefoftheU.S.PolysiliconIndustryat14;LettertotheCommissionfrom
DuPontPhotovoltaics&AdvancedMaterials.

118

v. U.S.governmentprogramshaveplayedaroleintheindustrys
development

TheU.S.governmenthassupportedandencouragedadoptionofsolarenergyasan
alternativeenergysourceforoversixdecades.In1954,thefirstCSPVcellwascreatedinthe
UnitedStatesbyBellLabs,95andearlyCSPVproductswereusedprimarilyinspaceapplications
bytheNationalAeronauticsandSpaceAdministration(NASA).96Beginningintheearly1970s
andthereafter,U.S.governmentsupportlargelywasfocusedonreducingcostsofdeployment,
improvingsolarenergytechnology,anddemonstratingapplicationsforsolarenergy.97
AsthemarketforCSPVproductsrapidlyexpandedoverthelastfifteenyears,theU.S.
Congresshasenactedlegislationprovidingtaxcreditsandotherincentivesdesignedto
encourageU.S.manufacturinganddeploymentofCSPVproducts,amongotherrenewable
energyproducts.TheEnergyPolicyActof2005madeinvestmentinsolarprojectseligiblefora
30percentinvestmenttaxcreditwhichcontinuestobeoneoftheprimaryincentives
encouragingsolarenergydeployment.98Inaddition,theAdvancedEnergyManufacturingTax
Credit,whichwasincludedintheAmericanRecoveryandReinvestmentActof2009(ARRA),
provideda30percenttaxcredittoadvancedenergymanufacturersthatinvestedinnew,
expanded,orreequippedmanufacturingfacilitiesbuiltintheUnitedStates.99In2010,multiple
CSPVcellandmoduleproducerswereawardedtaxcredits,includingSolarWorld($82million)
andSuniva($6million).100
Beyondtaxincentives,governmenteffortstoimprovedomesticsolartechnologyand
increasedomesticproductionhavebeendrivenlargelybyprogramsattheU.S.Departmentof
Energy(DOE).TheEnergyPolicyActof2005providedforloanguaranteestoneworinnovative
energytechnologiesnotcommerciallyavailable.ARRAtemporarilyauthorizedDOEtoprovide
loanguaranteesforrenewableenergyprojectsusingcommerciallyavailabletechnologies,

95
StateofCalifornia,CaliforniaEnergyCommission&CaliforniaPublicUtilitiesCommission,History
ofSolarEnergyinCalifornia,(EDISDoc.623277fileID1226486at593);MichaelaD.Platzer,U.S.Solar
PhotovoltaicManufacturing:IndustryTrends,GlobalCompetition,FederalSupport,Congressional
ResearchService,January27,2015,at26(EDISDoc.627084fileID1238001at466)(U.S.Solar
PhotovoltaicManufacturing).
96
U.S.SolarPhotovoltaicManufacturingat26.
97
Varadi,PeterF.,TerrestrialPhotovoltaicIndustry:TheBeginning,inSolarPowerfortheWorld,
2014,p.204205(EDISDoc.623463fileID1229643at1819);EDISDoc.623277fileID1226487.
98
InjuryHearingTr.at253(Grace).TheInvestmentTaxCreditforsolarwasfirstadoptedaspartof
theEnergyTaxActof1978,andhasbeencontinuouslyavailablesincethattime,withretroactive
applicationofthecreditduringoccasionallapses.However,itwastheEnergyPolicyActof2005that
introducedthe30percentcredit.ThecurrentInvestmentTaxCredithasbeenextendedtwicesincethat
time,aspartoftheEmergencyEconomicStabilizationActof2008andundertheConsolidated
AppropriationsActof2016.U.S.SolarPhotovoltaicManufacturingat23;LynnJ.Cunningham,
RenewableEnergyandEfficiencyIncentives:ASummaryofFederalPrograms,CongressionalResearch
Service,December14,2016,at22(EDISDoc627084fileID1238001at404)(RenewableEnergyand
EfficiencyIncentives).
99
U.S.SolarPhotovoltaicManufacturingat22.
100
EDISDoc.623277fileID1226486at371,624,860.

119

includingtoPVprojectsandmanufacturers.101BeforetheprogramexpiredinSeptember2011,
fourPVproductmanufacturersreceivedloanguaranteesunderthisprogramwithmixed
results,althoughnoneofthesefirmswereCSPVcellormodulemanufacturers.102
DOEalsooverseestheSolarEnergyTechnologiesProgram,whichhasbeenreferredto
astheSolarAmericaInitiative(institutedin2006)andtheSunShotInitiative(institutedin
2011).103Underthisprogram,DOEisrequiredtoconductaprogramofresearch,
development,demonstration,andcommercialapplicationforsolarenergy,including
photovoltaicsandothertypesofsolarenergy.104SunShot,themostrecentinitiativeunder
thisprogram,wascreatedtohelpaccomplishanumberofgoalsinthesolarsector,including
to:1)increasePVsolarcellefficiency,reduceproductioncosts,andopennewmarketsfor
solarenergy;2)shortentheamountoftimeittakestomovepromisingnewsolar
technologiesfromdevelopmenttocommercialization;and3)strengthentheU.S.supply
chainformanufacturingandcommercializingcuttingedgePVtechnologies.105Underthis
initiative,DOEhasprovidedfundstoprojectsledbyuniversities,companies,andnational
laboratoriesdesignedtoensureAmericantechnologicalleadership,lowercosts,andstrengthen
U.S.economiccompetitiveness.106SolarWorldandSunivahavebeenamongthelargest
recipientsofSunShotawardsamongPVmanufacturers,withmostoftheseprojectsrelatingto
productdevelopment.107Between2011and2016,thesecompanieswereawardedfundsinthe
amountof$20.4millionunderthisprogram.108
Inshort,theU.S.governmenthasalonghistoryofprovidingsubstantial,ifinconsistent,
supporttotheCSPVindustryandrelatedindustriesinvolvedinsolarenergyproduction.As
governmentprogramshavesoughttoreducecostsforsolarenergygeneration,theyhavealso
supportedtechnologicalimprovementsandexpandedproductioninthemanufacturingsector.
TheU.S.government,andDOEinparticular,hasacquiredsubstantialexperienceandexpertise
inadvancingtheviabilityandgrowthofthissector,whichcaninformfocusedeffortsto
facilitatethedomesticindustrysadjustmenttoimportcompetition.

101
EDISDoc.623277fileID1226486at514.
102
1366Technologies,aproducerofcrystallinesiliconwafers(anupstreaminputintoCSPVcells),
receivedaloanof$150million.1366Technologiesremainsanactiveproducer.Solopower,aproducer
ofathinfilmtechnologyproduct,wasdeobligatedpriortowithdrawingfundsfromaloanof$185
million.Bycontrast,twoproducersofthinfilmtechnologyproducts,SolyndraandAboundSolar,
receivedfederallyguaranteedloansofbetween$400millionand$535million,andbothfirmsultimately
defaultedandwentbankrupt.EDISDoc.623277fileID1226486at500,835.
103
RenewableEnergyandEfficiencyIncentivesat56,40;U.S.SolarPhotovoltaicManufacturingat
24;EDISDoc.623277fileID1226487at1215,2529.
104
42U.S.Code16231(2)(A).
105
DOE,TheSunShotInitiative:MakingSolarEnergyAffordableforAllAmericans,June2016(EDIS
Doc.623277fileID1226486at1133).
106
Id.
107
DOE,SunShotSolarProjectsDownload,May17,2017(EDISDoc.623277fileID1226486at286).
108
Id.***.SolarWorldPosthearingRemedyBrief,Exhibit2at65.

120

b. IndustryAdjustmentPlansandCommitments

AlthoughtheCommissionreceivednoadjustmentplanfrompetitioners(oranyother
domesticproducer)withinthe120daytimeframespecifiedinSection202(a)(4)oftheTrade
Act,109eachpetitionersubsequentlysubmittedcommitmentsregardingactionsitintendsto
taketofacilitatepositiveadjustmenttoimportcompetition.Ihavecarefullyexaminedthe
companyspecificcommitmentsbySolarWorldinitsposthearingremedybrief.SolarWorld
outlinedplansforinvestingtoincreasecapacity,capacityutilization,andcostsavings;itsplans
forinnovationandtechnologyupgrades;itsplansforR&Dpartnerships;anditsplansfor
solidifyingandexpandingitscustomerbase.110Ihavealsoexaminedtheprospectiveforward
actionplansubmittedbySuniva,whichindicatesthatitsprospectiveplandependsona
successfulagreementofareorganizationplaninitsChapter11bankruptcyproceedingandmay
changeasaresultofsuchanagreement.Sunivasprospectiveplanincludessuchobjectivesas
quicklyreactivatingitsproductioncapacity,producingatfullcapacity,becomingprofitable,
resumingitsR&Defforts,***.111IhavealsoconsideredtheresponsesofU.S.producerstothe
Commissionsquestionnaireregardingtheadjustmentstheywouldmaketotheiroperationsto
competemoreeffectivelywithimportsifimportreliefweretobegranted.112

c. RecommendedRelief

i. SafeguardActionProposals

PetitionersSunivaandSolarWorldhavebothproposedspecifictariffs,ratherthanad
valoremtariffs,of$0.25perwattonCSPVcellsand$0.32perwattonCSPVmodules;the
proposedtariffswouldbeinplaceforfouryears,andwouldbephaseddownannually.113
SunivahasalsoproposedaminimumimportpriceforimportsofCSPVmodulesof$0.74per
wattwhichwouldbeimplementedintheformofaquotathatwouldexcludeallimportsunder
thatprice;theproposedperwattfloorpricewouldbeineffectforfouryears,andwouldbe
increasedannually.114SolarWorldhasalsoproposedaquotaonimportsofCSPVcellsof0.22
GW,aswellasaquotaonimportsofCSPVmodulesof5.70GW.Theproposedquotaswould
beinplaceforfouryears,andwouldbeincreasedannually.115

109
19U.S.C.2252(a)(4).
110
SolarWorldsPosthearingRemedyBrief,Exhibit1,atpages513.
111
SunivaPosthearingRemedyBrief,Exhibit5,AttachmentB.
112
CR/PRatTableD2.
113
SolarWorldsPrehearingRemedyBriefat1014;SunivasPrehearingRemedyBriefat36and
Exhibit1at1.
114
SunivasPrehearingRemedyBriefat78andExhibit1at1.
115
SolarWorldsPrehearingRemedyBriefat1419.Inadditiontotheirproposalsforimportrelief,
petitionersalsoproposethatthePresidenttakethefollowingadditionalactions:1)issueanexecutive
orderdirectingallU.S.governmentagenciestorequireuseofU.S.originsolarcells;2)initiatebilateral
andmultilateralnegotiationstoaddressglobalovercapacityinsolarcellsandmodules;3)directhis
Administrationtoconductastudyofthecyber,electricalgrid,andnationalsecurityrisksofusingsolar
(Continued)

121

Bycontrast,respondentsgenerallyurgethattheCommissionrecommendnoimport
relief,andthatanyrecommendedremedyshouldbelimitedtotechnical,financial,andtrade
adjustmentassistance.116Somerespondentssupporttheinstitutionofasmallimportlicense
feeonimportsofCSPVproductsinordertocreateafundthatcouldprovidecapitalfor
investmentinthedomesticindustry.117

ii. CellsandModulesRemedyModel118

InordertoassessdifferentremedyoptionsonCSPVcellsandmodules,includingtariffs,
tariffratequotas,andquantitativerestrictions,Commissionstaffconstructedaninnovative
economicmodeloftheCSPVcellsandmodulesindustry.Thisindustryspecificpartial
equilibriummodelisdesignedtoestimatechangesinpricesandquantitiesofimportedand
domesticproducts,deploymentofCSPVproducts,changesintherevenuesandoperating
incomeofU.S.producers,andchangesinU.S.tariffrevenuesthatwouldresultfrompotential
traderemedies.119Theremedymodelinthisinvestigationdistinguishesbetweencell
productionandmoduleproduction,ratherthancombiningthemintooneCSPVproduct,and
tracksdifferentsupplychainsinordertoallowforthemodeltoprovideestimatesofdifferent
remediesonimportsofcellsandimportsofmodules.
ForallofthescenarioswhichIanalyze,Iadoptseveraluniformassumptions.The
domesticsupplyelasticityforbothCSPVcellsandmoduleswasestimatedtobebetween2and
4,120andIutilize***asthedomesticsupplyelasticity.Theimportsupplyelasticitywas

(Continued)
panelsofforeignoriginintheUnitedStates;4)providefundstothedomesticindustry,whichmaycome
fromcollectedU.S.AD/CVDdutiesonimportsofsolarcellsandmodulesfromChinaandTaiwanthatare
currentlyundersuspension,orfromanytariffsthatareimposedasaresultofthisSection201
proceeding,orfromothersources;5)considertakingactionstoamendtheInvestmentTaxCreditand
otherFederaltaxincentivestostimulateU.S.solardemandandinparticularforprojectsusing
domesticallyproducedcellsandpanels;6)pursuesettlementnegotiationswithrespecttotheU.S.
AD/CVDantidumpingandcountervailingdutyordersonsolarcellsandmodulesfromChinaandTaiwan
andthedutydepositscollectedunderthoseorderscurrentlyundersuspension,aswellasantidumping
andcountervailingdutyordersimposedbyChinaonimportsofsolargradepolysiliconfromtheUnited
States;7)directtheDOEtofundthefullcostofDOESunShotInitiativeresearchgrants;and8)direct
DOLtoimmediatelycertifyworkersfromanyoftheU.S.solarfacilitiesthatshutdownduringtheperiod
ofinvestigationforbenefitsandservicesundertheTradeAdjustmentAssistanceprogram.SolarWorld
PrehearingRemedyBriefat2129;SunivaPrehearingRemedyBriefat1318.
116
SeeSEIAsPrehearingRemedyBriefat4,4950;SEIAsPosthearingRemedyBriefat1215.
117
SEIAsPrehearingRemedyBriefat5659;SEIAsPosthearingRemedyBriefat1315andAppendix
Aat8792;U.S.PolysiliconIndustrysPosthearingRemedyBriefat1114;TeslasPosthearingRemedy
Briefat9.
118
SeeMemorandumECPP023(October23,2017).
119
Themodelusedinthisinvestigationismoreelaboratethanremedymodelsinmostpast
safeguardinvestigations.Thosemodelswerepartialequilibriummodelsusedtoestimatetheeffectsof
traderestrictionsonsingleindustries.
120
CRatV2526;PRatV1718.

122

estimatedtobebetween6and8,121andIutilize***astheimportsupplyelasticity.The
demandelasticityforinstalledCSPVproductswasestimatedtobebetween1.5and1.0.122
***.Inaddition,thedatausedinthemodelisderivedfromtheyear2016;however,because
anyfirstyearremedywouldlikelyoccurin2018,Iassumethat***.123
Duetomyultimaterecommendationthattheremedyexcludeimportsfromspecific
countriesthataremembersofcertainfreetradeagreementsandbenefitfromcertain
preferentialtradeprograms,IexcludeimportsfromSingaporeandCanadafromallremedies
thatIhavemodeled.124
Modelingresultsarepresentedinanappendixtotheseviews.

iii. ImpactofRestrictiveRemediesonFirmsandWorkers

Inanymarketformerchandisegoods,tariffsincreaseimportpricesdirectlybyapplying
adutyuponentryattheU.S.border,andindoingsogenerallyleadtoreducedimportvolumes
andhighermarketprices.Asaresult,tariffsgenerallyalsoresultinimprovementsindomestic
producersoutput,revenues,andoperatingincome,evenasdemanddeclines.Quantitative
restrictions,orquotas,limitthesupplyofimportsintheU.S.market,andthereforehavesimilar
effects.Tariffratequotas,whichapplyahighertariffforimportsenteringbeyondspecified
levels,alsoleadtosimilarresultsbycombiningelementsofbothquotasandtariffs.However,
duetothecompetitiveconditionsdiscussedabove,IfindthatthemarketforCSPVproductsis
poorlysuitedtothesetypesoftraderestrictiveactions.Aconsiderationofthelikelyeffectsof
petitionersproposedremediesillustrateswhythisisthecase.
Petitionersrequested$0.32/watttariffonmodulesand$0.25/watttariffoncellswould
havetheeffectofsubstantiallyincreasingimportprices,125andsinceimportscomprisemostof

121
CRatV26;PRatV18.
122
CRatV27;PRatV18.
123
Iused***.Myestimatesfocusonfirstyeareffectsbecauseanyremedymeasureswilllikely
havethemostpronouncedeffectsinthatyear,bothintermsofbenefitsandcosts.
124
Asdiscussedbelow,IrecommendthatthattheremedynotapplytoimportsofCSPVproducts
fromCanada(definedbasedonmodulecountryoforigin),aswellasimportsfromAustralia,theCAFTA
DRcountries,Colombia,Israel,Jordan,Panama,Peru,Singapore,andCBERAcountries(definedbased
oncellcountryoforigin).WiththeexceptionofCanadaandSingapore,importvolumesfromthese
countrieswerezeroordeminimis,andthereforecannotbeexcludedfromthemodel.SeeViewsofthe
CommissiononInjury,SectionV.B.3.
125
Themodelresultsindicatethatimportedcellpricesare***percenthigherthanbaselinelevels
underpetitionersproposedremedies,whilepricesforimportedmodulesare***percenthigher.
SolarWorldsproposedquantitativerestrictionsof5.7GWformodulesand0.22GWforcellsinthefirst
yeararenotbindinginthemodelresults;thatis,theydonotrestrictimportsorcauseadditional
economiceffectsbeyondthosecausedbypetitionersproposedtariffs.Similarly,petitionersproposed
tariffsleadtopricesrisingtoahigherlevelthanSunivasproposedmodulepricefloorof$0.74perwatt,
andthereforethepricefloorwouldnotbebindingifaccompaniedbythosetariffs.Therefore,for
purposesofthisdiscussion,Ifocusontheeffectsofpetitionersproposedtariffs,althoughIrecognize
thatthequotaandpricefloorproposedbypetitionersmayhaveadditionalrestrictiveeffectsas
conditionsdifferfrom2016.Forexample,totheextentthatpricesarelowerinthefirstyearofthe
(Continued)

123

theU.S.market,overallmarketpricesforCSPVmoduleswillrisesubstantially.126Demandfor
CSPVproductsishighlyreactivetochangesinpriceduetothefactthatsolarenergycompetes
headtoheadwithotherformsofelectricity,andPVinstallationsusingCSPVproductswillbe
lessattractivetocostconsciouspurchasersdownstream.Asaresultofthepriceincreasesfor
CSPVmodules,deploymentofCSPVproductswillfalldramatically,127whichisconsistentwith
thedeclineinimportsofCSPVmodules.128
U.S.producersthathaveintegratedcellproducingoperationswillseeincreasedprices,
output,andoperatingincomeunderthishightariffscenario.129However,theiroutputgains
willbelimitedbytheextremelysmallsizeofthecellproducingindustryintheUnitedStates.
Moreover,thesebenefitswillnotextendtomostU.S.producersofCSPVproducts,whichrely
onimportedCSPVcellstomanufacturemodulesintheUnitedStates.Theseproducers,which
alreadyoperateatlowcapacityutilizationratesandhaveaccountedformostoftheindustrys
closuresoverthelastfiveyears,willseebothoutputandoperatingincomedeclineasaresult
ofthehightariffonimportedCSPVcellsproposedbypetitioners.130Itislikelythatmanyof
theseproducerswillexitthemarketorwillbeunabletoundertakeplannedexpansionsasa
resultofhighlyrestrictivetraderemedies.
WhilecertainCSPVproducerswilllikelyexperiencemodestbenefitsfromrestrictive
tariffs,thesebenefitswillbeshortlived.Safeguardreliefisgenerallylimitedtofouryearsor
fewer,andtariffs,quotas,orTRQsmustbephasedout.Inordertomakealongtermpositive
adjustmenttoimportcompetition,U.S.producerswillhavetoquicklytranslateshortterm
profitsintosubstantialinvestmentsneededtoscaleupoperations.However,evenunderthe
moststringentremediesthatpetitionershaveproposed,theindustrywillstruggletobreak
even.131Therefore,U.S.producershopingtousetheremedyperiodtomakesignificant

(Continued)
remedythanin2016,Sunivasproposedpricefloormayleadtomorerestrictiveeffectsthanthose
referredtohere.
126
ThemodelresultsindicatethatoverallmarketpricesforCSPVmodulesare***percenthigher
thanbaselinelevelsunderpetitionersproposedremedies.
127
ThemodelresultsindicatethatdeploymentofCSPVmodulesis***,or***percent,lowerthan
baselinelevelsunderpetitionersproposedremedies.
128
ThemodelresultsindicatethatimportsofCSPVmodulesare***,or***percent,lowerthan
baselinelevelsunderpetitionersproposedremedies.
129
ThemodelresultsindicatethatoutputofU.S.modulesusingU.S.cellsis***percenthigherthan
baselinelevelsunderpetitionersproposedremedies.ThepriceofU.S.modulesusingU.S.cellsis***
percenthigherbaselinelevels.U.S.producersoperatingincomefromU.S.modulesusingU.S.cellsis
higherby$***.
130
Themodeldoesnotdistinguishbetweenthevolumeofimportsofforeigncellsandtheoutput
quantityofU.S.modulesusingforeigncells.ThemodelresultsindicatethatoutputofU.S.modules
usingforeigncellsis***percentlowerthanbaselinelevels,andU.S.producersoperatingincomefrom
sellingU.S.modulesusingforeigncellsis$***lower.
131
Themodelresultsindicatethatthedomesticindustrysoveralloperatingincome,includingfrom
U.S.modulesproducedfromU.S.andforeigncellsaswellasforeignmodulesusingU.S.producedcells,
is$***higherunderpetitionersproposedremedies.Bycontrast,theindustrysoperatinglossin2016
was$***.CR/PRatTableC1b.Theindustrysoperatinglossin2016wasdueinpartto***which,due
(Continued)

124

investmentswilllikelyfinditdifficulttoattracttheadditionalcapitalneededtosubstantially
expandcapacity.InvestorswillnotlikelybedrawntothemodestprofitsofferedbyU.S.
producersgiventheirknowledgethattheU.S.marketwillonceagainbeexposedtoglobal
oversupplyconditionsupontheterminationoftheremedy.132
Similarly,themodeldemonstratesthatU.S.producersshorttermbenefitsfrom
restrictivetariffswilllikelycomeatthecostofasizabledeclineindemand,asmeasuredby
deploymentofCSPVproducts.133Althoughpetitionersarguethatchangesindemandwillbe
minimalandthatanyshorttermimpactondemandwilllikelyreverseafterthesafeguard
remediesexpire,134manymarketparticipantstestifiedthattheyexpecttheseadverseeffects
ondemandforsolarenergytohavelongtermimpactsonthemarket.Manylongtermutility
projectsthatwouldhaveotherwisebeenservedbyCSPVmoduleswilllikelylosebidsto
suppliersofalternativesourcesofenergy.135Inaddition,theInvestmentTaxCredit,whichis
scheduledtobeginphasingoutafter2019,wouldbeconsiderablylessofanincentivebythe
timetheremedyterminates.136Arestrictivetraderemedywouldalsoinjectuncertaintyinto
themarketplaceandaffecttheflowofcapitalintotheoverallsector.137Finally,theshortterm
effectsondemandcausedbyafouryearrestrictivetraderemedywouldcausemany
businessesinthegreatersector,includingthosewithsubstantialcuttingedgeexpertiseand
investedcapital,togooutofbusinessorotherwiseleavethemarket.138Therefore,any
temporarygainsmadebycertainU.S.producersasaresultofpetitionersproposedremedies

(Continued)
toitsnature,cannotoccuragain.CRatIII53;PRatIII27.Ifthedomesticindustrysoperatinglossin
2016excludesthis***,itwouldbe$***.ModifiedtableC1b,EDISDoc.No.628217.Therefore,the
operatingincomegainsmadebytheindustryasaresultofpetitionersproposedtariffswouldbarely
allowthedomesticindustrytobreakeven,ifatall.
132
AsstatedintheViewsoftheCommissiononInjury,therehavebeenmanyshutdownsofCSPV
cellandmoduleproducersoverthe2012to2016period.CR/PRatTableIII3.AnexecutiveforNRG
Renewables,anindependentpowerproducer,statedthattherehasbeenmassivedestructionof
venturecapitalandprivateequitycapitalinthesolarindustryoverthelasttenyearsasaresultoflosses
inthemanufacturingsector,whichhasledtolessinvestorenthusiasmfornewsolarmanufacturing
projects.RemedyHearingTr.at343(Cornelius).
133
ThemodelresultsindicatethatdeploymentofCSPVproductsdeclinesto***in2018asaresult
ofpetitionersproposedremedies,downfromabaselineof***inthatyear.Thisresultisconsistent
withmodelingresultsprovidedbyexternalsources.Forexample,theIHSMarkitDeployment/JEDIJobs
modelprovidedbySEIAindicatesthatPetitionersproposedremediesresultinCSPVdeploymentof4.9
GWin2018,downfrom***projectedinthatyear.JointRespondentsRemedyHearingPresentationat
26.TheGTMResearchmodelshowsthata$0.30perwatttariffresultsinPVdeployment,includingthin
film,of7.7GWin2018comparedtobaselineinstallationsof10.9GWinthatyear.SEIAPosthearing
RemedyBrief,Exhibit2at36.
134
SolarWorldPrehearingRemedyBriefat41;SolarWorldPosthearingRemedyBrief,Exhibit2at49
50SunivaPosthearingRemedyBrief,Exhibit5at1112.
135
HearingTr.at299300(Shiao),300301(McLaughlin).
136
HearingTr.at300(Shiao).
137
HearingTr.at301303(OSullivan).
138
HearingTr.at300301(Werner,OSullivan).

125

wouldlikelyhavelastingadverseimpactsondemandforCSPVproducts,whichwouldlimitthe
degreetowhichtheindustrycanmakeapositiveadjustmenttoimportcompetitionafterthe
remediesexpire.
Finally,manyofthebusinessesandworkerscomprisingthebroadersolarindustryinthe
UnitedStateswouldbeadverselyaffectedbyanysignificantdecreaseindemandcausedby
petitionersproposedremedies.Basedonthemodelresults,whichindicateadramatic
decreaseindeploymentofCSPVproductsinthefirstyear,Iestimatethatpetitionersproposed
remedieswoulddisplaceasmanyas30,914workersintheindustriesmanufacturingBOS
equipmentandinstalling/developingCSPVprojects.139Inaddition,thousandsofjobsinother
partsofthebroadersolarindustryrelyonhighdomesticdeployment,includingthoseinvolved
inR&D,salesanddistribution,andotherservices.140Thesejobswouldalsolikelybeadversely
affectedbyasubstantialdeclineinCSPVdeployment.Bycontrast,thereweresubstantially
fewerjobsintheCSPVproductmanufacturingsectorin2016.141Therefore,theincreasein
domesticoutputofCSPVproductsresultingfrompetitionersproposedremedieswouldnot
likelyleadtosubstantialincreasesinemploymentwithintheCSPVmanufacturingsector
relativetothelossesexperiencedelsewherewithinthesolarsector.142
Changesinemploymentwithinthebroadersolarindustry,orintheCSPVmanufacturing
industry,arenotnetemploymenteffectsandmaynotmeaningfullyaffectnational
unemploymentrates.DisplacedCSPVinstallationanddevelopmentworkersmayfindwork
supportingothertypesofelectricitygeneration,inotherareasoftheconstructionsector,orin
otherindustries.Inaddition,someworkersmaynotlosetheirjobsifdecliningCSPV
deploymentispartiallyoffsetbyincreasinguseofthinfilminPVinstallations.However,this
doesnotmitigateadversedisplacementeffects,aspotentiallyhundredsoffirmsandtensof
thousandsofworkerswouldseetheireconomicopportunitieswithintheCSPVsectorseverely
diminishedasaresultoftheremediesproposedbypetitioners.Inaddition,CSPVproductsare

139
Therewereapproximately***workersintheinstallation/projectdevelopmentsectors,and***
workersintheBOSsectorin2016.***.Therefore,Iusea***workers,whichis***employment.I
concludethatpetitionerspreferredremedies,whichresultinfirstyeardeploymentbeing***percent
lowerinourmodelresults,couldleadtodisplacementof30,914fewerworkerswithinthesesectors.
140
SolarJobsCensusat27,33.
141
In2016,CSPVmanufacturersreportedthattherewere***workersincellproductionoperations
and1,253workersinmoduleassemblyintheUnitedStates.CR/PRatTablesIII16andIII17.
142
PetitionersalsoarguethatadditionalmanufacturingofCSPVproductsintheUnitedStateswill
leadtoincreasedemploymentinupstreammanufacturingsectors,includingthoseproducing
polysilicon,glass,aluminum,andpaste.SolarWorldPrehearingRemedyBriefat40;Exhibit26.
RespondentsassertthatupstreamemploymentisdrivenbydeploymentofCSPVproducts,likeallother
sectorswithinthesupplychain.RemedyHearingTr.at365366(Prusa).Upstreamsuppliershave
providedtestimonysupportingbothargumentsonthisissue.InjuryHearingTr.at131135(Byerson);
RemedyHearingTr.at9598(Ulbrich)(statingthattheirupstreammanufacturingoutputwouldincrease
inresponsetohigherU.S.CSPVproductmanufacturing);PosthearingRemedyBriefoftheU.S.
PolysiliconIndustryat14;LettertotheCommissionfromDuPontPhotovoltaics&AdvancedMaterials
(statingthattheirupstreammanufacturingoutputwouldbeadverselyaffectedbydecliningdemandfor
CSPVproductsasaresultofarestrictiveremedy).

126

uniqueamongenergygeneratingequipment,inthatmodulescanbeinstalledeasilyon
residentialstructuresinawaythatisnotasfeasibleforothertypesofequipment,including
certainthinfilmmodules.143Asaresult,theresidentialsegmentoftheCSPVinstallationsector
hasbeenasubstantialsourceoftheemploymentcreatedinthebroadersolarenergy
industry.144Althoughthemostseveredemandeffectswouldlikelybeintheutilitysegment
duetothedirectcostcompetitionwithothersourcesofenergy,145costconsciousconsumersin
theresidentialsegmentwouldalsolikelydemandfewerCSPVmodulesinresponsetolower
savings.146Therefore,itislikelythatarapidincreaseinpricesforCSPVproductsandadecline
inCSPVdeploymentwouldhavedevastatingeffectsformanyofthesmallfirmsand
constructionworkersengagedinresidentialinstallations.
Insummary,underpetitionersproposedremediesoranyrestrictivealternative
remedy,onlyasmallportionoftheCSPVindustrywouldbenefit,andmanyotherfirmsand
workerswithinandoutsidetheCSPVindustrywouldbemuchworseoff.Inaddition,even
thosefewproducersofCSPVproductsthatwouldbenefitundertheseremedieswould
experienceonlytemporaryandmodestperformanceimprovements,accompaniedby
substantialandpotentiallylastingdamagetotheirownmarket.Undertheseconditions,itis
unlikelythattheindustrywillbeabletoattractsufficientinvestmenttobeabletomakea
positiveadjustmenttoimportcompetitionuponterminationoftheremedies.
Althoughpetitionersproposedremediesofferanextremescenario,lowertariffswill
alsohavedramaticeffectsondemandandpricesinthemarket,whileleadingtofewergainsin
outputandprofitabilityforU.S.producers.147Inlightoftheuniquecompetitiveconditionsin
theU.S.marketforCSPVproducts,Idonotrecommendtheimpositionofaduty,TRQ,ora
tradelimitingquantitativerestriction.Instead,asdiscussedbelow,Irecommendaquantitative
restrictionsetatlevelsthatwillnotdisruptexpectedgrowthinCSPVdemandbutwillhelp
addresstheseriousinjurytothedomesticindustrybystabilizingimportlevelsandpreventing
furthersurges.

143
Asnotedabove,thinfilmaccountedforlessthan1percentofresidentialinstallationsin2016.
FirstSolar,thelargestglobalthinfilmproducer,primarilysuppliesproductstothenonresidentialand
utilitymarketsegments.NREL,TrackingtheSunPublicDataFile,TrackingtheSunPublicDataFile,
September21,2017;FirstSolar,Form10K,AnnualFilingtotheSecuritiesandExchangeCommission
forthefiscalyearendedDecember31,2016,pp.2,57,10.
144
SolarWorldPosthearingRemedyBrief,Exhibit2at7980;InjuryHearingTr.at269(Fenster).
145
SolarWorldPosthearingRemedyBrief,Exhibit2at78.
146
AttheCommissionshearingonremedy,witnessesforGTMResearchandSunrunexplainedthat
whenresidentialhouseholdsseelessthan10percentsavingsrelativetothecostofbuyingenergyfrom
utilities,theyfrequentlyforegohouseholdsolarinstallations.GTMResearchRemedyHearing
Presentation,Slides1314;RemedyHearingTr.at213(Shiao),233235(Fenster).SeealsoCory
Honeyman,MJShiao,andBenjaminGallagher,U.S.SolarOutlookUnderSection201,GTMResearch,11
13(EDISDoc.623265).
147
Forexample,Iconsideredmodelresultsfroma25percenttariffonCSPVmodulesanda0
percenttariffonCSPVcells,whicharepresentedinthe25/0%AVTscenariointheAppendix.These
resultsdemonstratethatthedomesticCSPVmanufacturingindustrywouldexperienceloweroverall
gainsthanthescenariodescribedabove,whiledeploymentwillstilldeclinesubstantially.

127

iv. QuantitativeRestriction

IrecommendthatthePresidentimposeaquantitativerestrictiononimportsofCSPV
productsintotheUnitedStates,includingcellsandmodules,forafouryearperiod.I
recommendthatthequantitativerestrictionbesetat8.9gigawattsinthefirstyear,and
increaseby1.4gigawattseachsubsequentyear.148IrecommendthatthePresidentadminister
quantitativerestrictionsonaglobalbasis,asopposedtoacountryspecificbasisduetothe
rapidlychangingnatureofavailableglobalsupply.Ialsomakeseveralrecommendationson
whetherandhowthequantitativerestrictionshouldapplytospecificcountriesunderthe
implementingstatutesofcertainfreetradeagreementsandunderstatutoryprovisionsrelated
tocertainpreferentialtradeprograms,whichIdiscussingreaterdetailbelow.
Asdiscussedabovewithrespecttopetitionersproposedremedies,Ifindthatany
actionthatseverelyrestrictsimportsorcausesimportpricestoincreasewilllikelyleadto
higheroverallmarketpricesandlowerCSPVdeployments,whileprovidingonlyverylimited
benefitstoU.S.producersofCSPVproducts.Forthisreason,Idonotrecommendanymeasure
thatislikelytoresultinsubstantiallylowerimportsthanwouldlikelyoccurunderprojected
conditions.Thatsaid,myproposedquantitativerestrictionforthefirstyearissetatavolume
intendedtostabilizeimportsatalevellowerthanthevolumethatoccurredin2016.Ihavealso
recommendedincreasingtheannualquantitativerestrictionsteadilyineachsuccessiveyearto
accommodateexpectedgrowth.Theseremedieswillhelpaddresstheseriousinjurytothe
domesticindustrybypreventingfurthersurgesinimportsinresponsetochangesinU.S.
demandorinresponsetohigherthanexpectedglobalsupply.
InaccordancewithSection1102oftheTradeAgreementsActof1979andthe
Presidentsauthorityinsection203(a)(3)(F)oftheTradeAct,Ialsorecommendthatthe
Presidentadministerthesequantitativerestrictionsbysellingimportlicensesatpublicauction
ataminimumpriceof$0.01perwatt.Thelicenseprogramcouldbeadministeredusingthe
expertiseoftheDOEinconjunctionwiththeU.S.DepartmentofTreasuryorU.S.Customsand
BorderProtection.Suchimportlicenseauctionsofferseveraladvantages.Becausethe
quantitativerestrictionsaresetatalevelconsistentwithprojectedPVinstallations,itislikely
thattherewillbesufficientlicensestomeetdomesticdemandforimports,andmostauctions
willnotresultinadditionalcoststoimportersbeyondthe$0.01perwattminimum.149Both

148
Aquantitativerestrictionmustpermittheimportationofaquantityorvalueofthearticlewhich
isnotlessthantheaveragequantityorvalueofsucharticleenteredintotheUnitedStatesinthemost
recent3yearsthatarerepresentativeofimportsofsucharticleandforwhichdataareavailable.
Section203(e)(4)oftheTradeAct.AsdiscussedingreaterdetailwithintheViewsoftheCommissionon
Injury,importsin2016wereatfarhigherlevelsthaninprioryearsdueinparttotheexpectationthat
theInvestmentTaxCreditwouldexpirethatyear.Therefore,using2013to2015asthethemost
recent3yearsthatarerepresentativeofimportsofCSPVproducts,theaveragequantityofCSPV
productsimportedintotheUnitedStateswas***.CR/PRatTableC1b.Thequantitativerestriction
thatIhaverecommendedishigherthanthisthresholdquantity.
149
IusetheCellsandModulesRemedyModeltoanalyzethelikelyeconomiceffectsofthisremedy
forthefirstyear.UsingtheassumptionthatPVdeploymentswoulddeclineby***percent,Iproject
thatbaselinedemandforimportedCSPVcellsandmodulesfromcountriesotherthanSingaporeand
(Continued)

128

petitionersandrespondentsassertthata$0.01perwattimportlicensefeewillnotlimit
trade.150However,ifthereisgreaterdemandforimportsthanexpected,therewilllikelybe
greatercompetitionforavailableimportlicenses.Undermostquotas,importpriceswould
increaseunderthesecircumstances,leadingtoeconomicrentsbeingcapturedbyforeign
exporters.However,ifimportlicensesareauctioned,thoserentsarecollectedasU.S.
governmentrevenuesinstead.Suchauctionpricesundertheproposedquantitativerestriction
alsohavebenefitsovertariffs,inthattheywouldonlycauseincreasedmarketpricesin
responsetounexpectedincreasesindemand.151
HavingmadeanaffirmativefindingwithrespecttoimportsfromMexico(withimports
ofCSPVmodulesfromMexicodefinedbasedonthecountrywherethemodulewasproduced)
undersection311(a)oftheNAFTAImplementationAct,section312(d)requiresthatanyaction
proclaimingaquantitativerestrictionshallpermittheimportationofaquantityofthearticle
thatisnotlessthanthequantityofsucharticleimportedduringthemostrecentperiodthatis
representativeofimportsofsucharticle,withallowancesforreasonablegrowth.152
IrecommendthatthePresidentallocatenolessthan720megawattsoftheglobal
quantitativerestrictiontoimportsofCSPVproductsfromMexicoduringthefirstyear,which
wouldexpandby115megawattseachyear.ImportersfromMexicowouldneedtobuyimport
licensesataminimumpriceof$0.01perwatt.Asstatedabove,Irecommendthatthe
remainderofthequantitativerestrictionbeadministeredonaglobalbasis.However,Ialso
recommendthatthePresidentallowimportersfromMexicotoacquireimportlicensesunder
thepublicauctionsystemfromtheremainderoftheglobalallocation,iftherearenolonger
availableimportlicenseswithintheMexicospecificallocation.
HavingmadeanegativefindingwithrespecttoimportsfromCanada(withimportsof
CSPVmodulesfromCanadadefinedbasedonthecountrywherethemodulewasproduced)

(Continued)
Canadawouldbe***in2018.Becausean8.9GWquantitativerestrictiononallCSPVproductswould
thereforenotbebindingunderthisscenario,Ididnotincludethatrestrictioninthemodel.However,I
didincludea$0.01perwatttariffonCSPVcellsandmodules,whichhadminimaleffectsonall
relevanteconomicindicators.Themodelresultsindicatethatthequantityofimportedcellswouldfall
by***percentandthequantityofimportedmoduleswouldfallby***percent,whiledeployment
wouldfallby***percent.Overallmarketpriceswouldincreaseby***percentandtheindustrys
overalloperatingincomewouldincreasebyabout$***.
150
SunivaPosthearingRemedyBrief,Exhibit5at22;SolarWorldPosthearingRemedyBrief,Exhibit2
at5859;SEIAPosthearingRemedyBrief,Attachment1at8788.
151
ImporterscouldseektogainanadvantageintheU.S.marketbyacquiringlicensesathighauction
pricesandthenimportinglessthantheamounttheyhavelicensesforaftereffectivelyshuttingout
otherimporters.However,thisriskcouldbemitigatedbypenalizingimportersengaginginthispractice
usingmonetaryfinesorotherdeterrents.
152
ImportsfromMexicoincreasedinunevenamountsduringthe2012to2016period,risingmost
significantlybetween2012and2013andbetween2014and2015.Therefore,noindividualyearorset
ofyearswithinthisfiveyearperiodismorerepresentativeofimportsfromMexicothananyother.The
averageannualimportquantityenteringfromMexicowas***between2012and2016,whichI
considertoberepresentativeforthisperiod.CR/PRatTableC1b.

129

undersection311(a)oftheNAFTAImplementationAct,Irecommendthatthequantitative
restrictionnotapplytoimportsfromCanada.Furthermore,Irecommendthatthisquantitative
restrictionnotapplytoimportsfromAustralia,theCAFTADRcountries,Colombia,Israel,
Jordan,Panama,Peru,Singapore,andtheCBERAbeneficiarycountries.

v. AssistancetoFacilitateProductionActivitiesintheCSPVIndustry

TheCommissionisauthorizedtorecommendoneormoreappropriateadjustment
measures,includingtheprovisionoftradeadjustmentassistance.153Suchmeasuresmay
includeavarietyofindustrysupportprograms,includingprogramsusedtosupportpositive
adjustmentforbothworkersandfirms.154
Asdiscussedabove,IrecommendthatthePresidentimposeaquantitativerestriction
onimportsofCSPVproductsintheamountof8.9GWinthefirstyear,tobeadministeredona
globalbasis,usinganimportlicenseauctionprogramwithaminimumpriceof$0.01perwatt.
Ifallimportlicensesaresoldatthisprice,itwillgenerateU.S.governmentrevenuesof$89
millioninthefirstyear,andthisamountwouldincreaseeachyearalongwiththenumberof
availablelicensesundermyproposedremedy.155Therefore,ifallimportlicensesaresoldatthe
minimumauctionprice,itwillgenerate$440millioningovernmentrevenuesoverfouryears,a
numberwhichcouldpotentiallybefargreaterifthereiscompetitionforthoselicenses.
U.S.producershavesubmittedinformationaboutthetypesofinvestmentsthatthey
plantoundertakeoverthenextseveralyears.Theseincludecellandmodulecapacity
increases,technologicalimprovements,andtherehiringofworkers,andareanticipatedtocost
severalhundredmilliondollars.Asassertedbybothpetitionersandrespondents,andas
discussedingreaterdetailabove,theU.S.industrywillneedtomaketheseinvestmentsin
ordertoachievetheeconomiesofscale,maintaintechnologicalsuperiority,andreach
maximumefficiencyneededtobegloballycompetitivewithforeignproducers.Ihavefound
thatthedomesticCSPVindustrywilllikelynotbeabletoattractinvestmentsorbenefitinthe
longtermifrestrictiveremediesresultinlastingdamagetotheCSPVmarket.However,such
investmentisnonethelessnecessaryfortheindustrytomakeapositiveadjustmenttoimport
competition.
Inordertoencouragetheseinvestments,IrecommendthatthePresident,totheextent
permittedbylaw,authorizethattheuseoffundsequaltotheamountgeneratedbyimport
licenseauctionsbeprovidedfordevelopmentassistancetodomesticCSPVproducersforthe
durationoftheremedyperiod.The$440millioninadditionalrevenuesderivedfromthesale

153
19USC2252(e)(2)(D).
154
OmnibusTradeandCompetitivenessActof1988(OTCA),ConferenceReporttoAccompanyH.R.3,
Rept.100576,100thCong.2dSess.(1988)at675.Thetermadjustmentmeasuresreferstoany
existingauthoritytoprovideadjustmentassistances,suchascommunityassistanceprogramsor
manpowerprograms,notonlytradeadjustmentassistance.Inthiscontext,theremedyoftrade
adjustmentassistancemeansbenefitsotherthanthosetowhichworkersarealreadyentitledunder
chapter2oftheTradeActof1974,asamended.
155
Themodelresultsformyproposedremedyprojectaslighttradelimitingeffectfroma$0.01per
watttariff,whichwouldresultinslightlylowerfirstyeargovernmentrevenuesof$***.

130

ofimportlicenseswouldfarsurpassthedomesticindustrysgainsinoperatingincomeunder
eventhemostrestrictiveremedies.156Suchassistancewouldthereforebefarmoreeffective
thanarestrictiveremedyinfacilitatingthedomesticindustrysinvestmentsinitsownfuture
competitiveness,andalsofarlessdestructivetothemarket.
Severalcurrentdomesticproducersareownedbyforeignentitieswiththeirown
financialconcerns.Therefore,anyfederalresourcesprovidedtothedomesticindustryshould
bedevotedsolelytoinvestmentsinproductivepursuitsrelatedtodomesticCSPVproduct
manufacturing.Suchinvestmentscouldincludethepurchaseandinstallationofproduction
equipmentlocatedintheUnitedStates,thehiringofU.S.productionworkers,andU.S.based
researchanddevelopmentinimprovedproductandproductionengineeringtechnologies.In
ordertoensurethemosteffectiveuseofresources,IrecommendthatthePresidentrelyonthe
DOEsdepthofexperienceinadvancingtheviabilityandgrowthofthissector.Although
currentDOEsupportforthisindustryislimitedprimarilytoR&Dfundingprograms,DOEalso
hasextensiveexperience,includingbothsuccessesandfailures,inprovidingmoredirect
financingtoU.S.solarmanufacturers.IrecommendthatthePresidenttakeactionsthatutilize
authorizedprogramsattheDOEtotheextentpracticable,andworkwithCongresstothe
extentnecessarytoauthorizeandappropriateanyadditionalresourcesrequiredtoaccomplish
theseobjectives.
IalsorecommendthatthePresidentimplementotherappropriateadjustment
measures,includingtheprovisionoftradeadjustmentassistancebytheUnitedStates
DepartmentofLabor(DOL)andtheUnitedStatesDepartmentofCommerce(DOC)toworkers
andfirmsaffectedbyimportcompetition.
Workerswhosepositionshavebeeneliminatedbecauseoftheimpactofdirecttrade
competitionareeligibleforadditionalunemploymentcompensation,retrainingassistance,and
healthcarethroughTradeAdjustmentAssistance(TAA)forWorkers,aprogramadministeredby
DOL.GiventhatthedomesticCSPVmanufacturingindustryhasexperiencedalargenumberof
closuresandidlingofcapacity,manyworkershavelosttheirjobsandhavetakenadvantageof
thisprogram.Since2012,2,124workershavebeencertifiedaseligibleforTAA,althoughonly
244workershaveactuallyparticipatedintheprogram.Sunivareportsthatitsfactoryin
Norcross,GeorgiahasnotyetbeencertifiedforTAAforWorkersbytheDOL.157Inorderfor
dislocatedworkersintheindustrytoexperienceanorderlytransitiontoproductivepursuits,as
requiredbysection201(b)(1)(B)oftheTradeAct,IrecommendthatthePresidentensurethat
displacedworkersareabletotakefulladvantageofTAAprograms.
Companiesthathavebeennegativelyaffectedbytrademayalsobeeligiblefortechnical
assistancethroughregionalTAACentersaspartofaprogramadministeredbyDOC.***.158
Therefore,IalsorecommendthatthePresidentensurethatCSPVproducingcompanieshave
accesstotechnicalassistanceprovidedbytheTAAforFirmsprogram.

156
Asdiscussedabove,themodelindicatesthatpetitionersproposedremediesresultsinthe
industrysoperatingincomebeing***higherthanbaselineprojectionsforthefirst,mostrestrictiveyear
oftheremedy.
157
SunivaPosthearingRemedyBrief,Exhibit5at27.
158
***.

131

III. ShortandLongTermEffectsofProposedRemedies

Thedecisionnottotaketherecommendedactionswouldlikelyhaveadverseeffectson
theU.S.industry,itsworkersandthecommunitieswhereproductionfacilitiesoftheindustry
arelocated,andonotherindustries.ThedomesticCSPVindustry,facingconsistent
unprofitabilityandunderutilizationofcapacity,wouldlikelycontinuetoexperienceshutdowns
withoutadditionalfinancialsupportandinvestment.Theproducerswithinthedomestic
industrycurrentlyhaveinsufficientcapacitytocompeteeffectivelyagainstlargeforeign
producersthatbenefitfromgovernmentincentives,establishedsupplychains,andmassive
economiesofscale.Regardlessofwhethernoactionistakenorarestrictiveremedyisapplied,
thedomesticindustrywouldcontinuetofacethisrealityinboththeshortandlongterm
withoutaconcertedefforttofacilitatetheindustrysplannedinvestments,particularlythose
allowingittoscaleupproduction.
Asdiscussedabove,manysectorsofthebroadersolarindustry,frominstallersand
projectdeveloperstoproducersofBOSequipment,aswellasanarrayofserviceprovidersand
upstreamsuppliers,havebenefitedsubstantiallyfromincreasedCSPVdeployments.However,
thesefirmsalsobenefitfromincreasingefficienciesandtechnologicalimprovementswithinthe
supplychain,ofwhichCSPVproductsaccountforthelargestshareoftotalvalueadded.159A
thrivingandgrowingCSPVcellandmodulemanufacturingsectorwillhelptheUnitedStates
continuetodriveinnovationwithinthesolarenergysector.Therefore,otherU.S.industries
wouldnotbenefitineithertheshortorlongtermfromcontinuedseriousinjurytothedomestic
CSPVindustry.
TheactionsIhaverecommendedwouldlikelyresultinthecontinuedgrowthoftheU.S.
CSPVcellandmoduleindustrywhileavoidingdamagetothebroadersolarindustry.My
proposedactionswouldaddresstheseriousinjurytothedomesticindustryandfacilitate
positiveadjustmenttoimportcompetitioninseveralways.ThequantitativerestrictionthatI
haveproposedwouldstabilizethemarketandpreventfurthersurgesofimportsfrom
occurring.Althoughcontinuedgrowthofimportswouldbepermitted,importsofCSPV
productswouldnotovertakeoroutpaceprojectedPVinstallationsundertheserestrictions.To
theextentthatU.S.demandincreasesbeyondtheseprojections,theeffectwouldbeprice
increasesratherthananinjurioussurgeoflowpricedimports,asoccurredin2016.
Inaddition,thedomesticindustryproducingCSPVproductswouldcontinuetoface
importcompetition,butwouldbesupportedbyresourcesequaltotherevenuesgenerated
fromthesaleofimportlicenses.Thesefundswouldbesubstantial,andwouldhelpthe
domesticindustrymaketheinvestmentsneededtoreachitsowntargetsforproduction
capacity,technologicaladvancement,andemployment,whichbothpetitionersand
respondentsagreearenecessaryfortheindustrytobegloballycompetitive.Firmsthatare
successfulinusingtheseresourcestomakenecessaryinvestmentswouldlikelybeableto

159
SolarWorldPrehearingRemedyBrief,Exhibit16.

132

competesuccessfullywithimportsaftertheseactionsterminate,giventhedomesticindustrys
strongtrackrecordofproducinginnovative,highlyefficientCSPVproducts.160
TheserecommendedactionswouldnotcausereduceddeploymentofCSPVproductsor
correspondingloweremploymentwithinthebroadersolarindustry.Bycontrast,amore
restrictivetraderemedy,suchasthoseproposedbypetitioners,wouldcauseseveredamageto
industriesandworkersrelyingonthecontinuedgrowthofsolarpowerasthelargestsourceof
newenergyinstallations.Inaddition,higherpricesforCSPVproductswouldaffectU.S.
consumersthatincreasinglyrelyonsolarpowerasanalternativesourceofhomegenerated
energy,allowingthemtosavemoneyonutilitybills.Myrecommendedactionswouldpreserve
thistechnologyssuccesseswhilecreatinganopportunityforthedomesticCSPVindustryto
benefitaswell.

160
SeesectionIV.F.1oftheViewsoftheCommissiononInjuryformoredetaileddiscussionofthe
domesticindustrystechnologicalleadership.TheU.S.CSPVmarketwillcontinuetochangeandevolve,
andcertainU.S.producersmayshutdownasothersbeginoperations.Ihaverecommendedthe
provisionofTAAforworkerstoprovideadjustmentassistancetodislocatedworkers.

133

Appendix:ModelingResultsandEstimatedEffectsofVariousRemedies

Themodelingresultspresentedherearefromthreeremedyscenarios,whichare:

Broadbentremedy:Myremedyincludesaonecentperwattminimumimportlicense
auctionpriceandaquotaonallCSPVproductsthatwillnotlikelybebindingunder
currentdemandprojections.Therefore,Iusea$0.01/wattspecifictariffonbothCSPV
modulesandcellsasaproxyforestimatingtheeconomiceffectsofmyremedy.

25/0%AVT:Iconsidereda25percentadvaloremtariffonCSPVmodulesanda0tariff
onCSPVcellstoassesstheeffectsofamoremoderateremedythanthatproposedby
petitioners.

Petitionerremedy:SolarWorldsproposedremedies,whichSunivaagreedwith,include
a$0.32/wattspecifictariffand5.70GWquotaonCSPVmodulesaswellasa$0.25/watt
specifictariffand0.22GWquotaonCSPVcells.

Additionalnotesandassumptions:

AllremediesmodeledhereassumeexclusionofimportsfromSingaporeandCanada.All
otherimportsexcludedfromtheremedyrecommendationsaredeminimisorzero,and
thereforearenotexcludedfromthemodel.

Estimatesofdownstreamemploymentarederivedfrommyowncalculationsbasedon
modelingresultsforCSPVdeployment.Iassumedthatdownstreamemploymentinthe
BOSmanufacturingandprojectdevelopment/installationsectorswoulddecline
proportionallywithCSPVdeployment.

Allresultsareforthefirstyearoftheremedy,whichwouldcorrespondmostdirectly
with2018basedonthetimingofthisinvestigation.

Baselinequantityandemploymentestimatesare***.

Iuseadomesticsupplyelasticityof***,animportsupplyelasticityof***,anda
demandelasticityof***forallscenarios.

Importsofmodules,aspresentedintheresultsbelow,includeCSPVmodulesimported
fromcoveredsourcessubjecttotheremedies,inadditiontoimportsfromcountriesnot
coveredbytheremediesandimportsofCSPVmodulesmadefromU.S.cells.

Quantities(***)
Factor *** *** *** ***
U.S.modulesmadefromU.S.cells *** *** *** ***
U.S.modulesmadefromforeigncells *** *** *** ***
Importsofmodules *** *** *** ***
TotalCSPVmoduledeployments *** *** *** ***

134

ChangeinQuantities(***)
Factor *** *** *** ***
U.S.modulesmadefromU.S.cells *** *** *** ***
U.S.modulesmadefromforeigncells *** *** *** ***
Importsofmodules *** *** *** ***
TotalCSPVmoduledeployments *** *** *** ***

ChangeinQuantities(%)
Factor *** *** *** ***
U.S.modulesmadefromU.S.cells *** *** *** ***
U.S.modulesmadefromforeigncells *** *** *** ***
Importsofmodules *** *** *** ***
TotalCSPVmoduledeployments *** *** *** ***

ChangeinPrices(%)
Factor *** *** *** ***
U.S.modulesmadefromU.S.cells *** *** *** ***
Importsofcells *** *** *** ***
Importsofmodules *** *** *** ***
AllCSPVmodules *** *** *** ***

135



ChangeinOperatingIncome($***)
Factor *** *** *** ***
U.S.modulesmadefromU.S.cells *** *** *** ***
U.S.modulesmadefromforeign
cells *** *** *** ***
U.S.cellsusedinforeignproduced
importedmodules *** *** *** ***
TotalU.S.operatingincome *** *** *** ***
***

EstimatesofDownstreamEmployment(NumberofWorkers)
Factor *** *** *** ***
ProjectDevelopment/Installation *** *** *** ***
BalanceofSystemManufacturing *** *** *** ***
TotalDownstreamEmployment *** *** *** ***

136