U.S. International Trade CommissionPublication 4739 November 2017

Washington, DC 20436

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

U.S. International Trade Commission

COMMISSIONERS

Rhonda K. Schmidtlein, Chairman David S. Johanson, Vice Chairman

Irving A. Williamson Meredith M. Broadbent

Catherine DeFilippo

Staff assigned

Address all communications to Secretary to the Commission

United States International Trade Commission Washington, DC 20436

Director of Operations

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 InvestigatorSpecial assistance from

Amanda Lawrence, Investigator

U.S. International Trade CommissionWashington, DC 20436

www.usitc.gov

Publication 4739 November 2017

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

CONTENTSPage

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DeterminationandRemedyRecommendations......................................................................1

Commission'sViewsonInjury.................................................................................................5

ViewsonRemedyofChairmanRhondaK.Schmidtlein..........................................................81

ViewsonRemedyofViceChairmanDavidS.Johansonand

CommissionerIrvingA.Williamson...................................................................................89

ViewsofCommissionerMeredithM.BroadbentonRemedy..............................................105

Note.Informationthatwouldrevealconfidentialoperationsofindividualconcernsmaynotbepublishedandthereforehasbeendeleted.Suchdeletionsareindicatedbyasterisks.

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UNITEDSTATESINTERNATIONALTRADECOMMISSION

InvestigationNo.TA20175

CrystallineSiliconPhotovoltaicCells(WhetherorNotPartiallyorFullyAssembledintoOtherProducts)

DETERMINATION

Onthebasisofinformationdevelopedinthesubjectinvestigation,theCommissiondeterminedpursuanttosection202(b)oftheTradeActof1974thatcrystallinesiliconphotovoltaiccells(whetherornotpartiallyorfullyassembledintootherproducts)(CSPVproducts)arebeingimportedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjurytothedomesticindustryproducinganarticlelikeordirectlycompetitivewiththeimportedarticle.

Havingmadeanaffirmativeinjurydeterminationpursuanttosection202(b)oftheTradeActof1974,theCommissionwasrequiredtomakecertainadditionalfindingsundertheimplementingstatutesofcertainfreetradeagreements(FTAs)orunderstatutoryprovisionsrelatedtocertainpreferentialtradeprograms.Undersection311(a)oftheNAFTAImplementationAct(19U.S.C.3371(a)),theCommissionfoundthatimportsofCSPVproductsfromMexicoaccountforasubstantialshareoftotalimportsandcontributeimportantlytotheseriousinjurycausedbyimports.Under19U.S.C.3371(a),theCommissionalsofound,withChairmanRhondaK.Schmidtleindissenting,thatimportsofCSPVproductsfromCanadadonotaccountforasubstantialshareoftotalimportsanddonotcontributeimportantlytotheseriousinjurycausedbyimports.TheCommissionfurtherfoundthatimportsofCSPVproductsfromKoreaareasubstantialcauseofthreatofseriousinjury,butthatimportsofCSPVproductsfromAustralia,theU.S.DominicanRepublicCentralAmericaFreeTradeAgreement(CAFTADR)countries,Colombia,Jordan,Panama,Peru,andSingapore,individually,arenotasubstantialcauseofseriousinjuryorthreatthereof,undertherespectiveimplementinglegislationfortheFTAswiththesecountries.See19U.S.C.2112note(Jordan);19U.S.C.3805note(Australia,Colombia,Korea,Panama,Peru,Singapore);19U.S.C.4101(CAFTADR). TheCommissionalsofoundthattheseriousinjurysubstantiallycausedbyimportstothedomesticindustryproducingalikeordirectlycompetitivearticledoesnotresultfromthereductionoreliminationofanydutyprovidedforundertheU.S.IsraelFreeTradeAgreementorfromdutyfreetreatmentprovidedforundertheCaribbeanBasinEconomicRecoveryAct(CBERA)provisionsoftheCaribbeanBasinInitiativeTradeProgramortheGeneralizedSystemofPreferences(GSP)program.19U.S.C.2112note(Israel);19U.S.C.2703(e)(CBERA);19U.S.C.2253(e)(6)(GSP).

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REMEDYRECOMMENDATIONS InordertoaddresstheseriousinjurytothedomesticindustryproducingCSPVproducts

andbemosteffectiveinfacilitatingtheeffortsofthedomesticindustrytomakeapositiveadjustmenttoimportcompetition,theCommissionrecommendedaseriesofactions.

WithregardtoCSPVcells,ChairmanSchmidtleinrecommendsatariffratequotawithaninquotatariffrateof10percentadvaloremandaninquotavolumelevelof0.5gigawatts.ForU.S.importsofcellsthatexceedthe0.5gigawattsvolumelevel,sherecommendsatariffrateof30percentadvalorem.ChairmanSchmidtleinrecommendsthatthistariffratequotabeimplementedforfouryearsandthattheinquotalevelbeincrementallyraisedandthetariffratebeincrementallyreducedduringtheremedyperiod.WithregardtoCSPVmodules,sherecommendsanadvaloremtariffrateof35percenttobeincrementallyreducedduringthe4yearremedyperiod.ChairmanSchmidtleinalsorecommendsthatthePresidentinitiateinternationalnegotiationstoaddresstheunderlyingcauseoftheincreaseinimportsofCSPVproductsandalleviatetheseriousinjurythereof.HavingmadefindingsthatU.S.importsfromAustralia,theCAFTADRcountries,Colombia,Israel,Jordan,Panama,Peru,Singapore,andthebeneficiarycountriesunderCBERAwerenotasubstantialcauseoftheseriousinjuryexperiencedbythedomesticindustry,ChairmanSchmidtleinrecommendstothePresidentthatU.S.importsfromthesecountriesbeexcludedfromtheremedy.

ChairmanSchmidtleinsRecommendedRemedy Year1 Year2 Year3 Year4Cells:TariffrateQuota InQuotaTariffRate 10% 9.5% 9.0% 8.5%InQuotaVolumeLevel 0.5gigawatts 0.6gigawatts 0.7gigawatts 0.8gigawattsOutofQuotaTariffRate 30% 29% 28% 27%Modules:Tariff(AdValorem) 35% 34% 33% 32%

ViceChairmanDavidS.JohansonandCommissionerIrvingA.Williamsonrecommendthatfora4yearperiodthePresidentimpose(1)atariffratequotaonimportsofCSPVproductsincellform,and(2)increasedratesofdutyonimportsofCSPVproductsinmoduleform.ForimportsofCSPVproductsincellform,theyrecommendanadditional30percentadvaloremtariffonimportsinexcessof1gigawatt.Ineachsubsequentyear,theyrecommendthatthistariffratedecreasebyfivepercentagepointsandthattheinquotaamountincreaseby0.2gigawatts.TherateofdutyoninquotaCSPVproductsincellformwillremainunchanged.ForimportsofCSPVproductsinmoduleform,ViceChairmanJohansonandCommissionerWilliamsonrecommendanadditional30percentadvaloremtariff,tobephaseddownbyfivepercentagepointsperyearineachofthesubsequentyears.HavingmadeanegativefindingwithrespecttoimportsfromCanadaundersection311(a)oftheNorthAmericanFreeTradeAgreementImplementationAct,theyrecommendthatsuchimportsbeexcludedfromtheabovetariffratequotaandincreasedratesofduty.Further,ViceChairmanJohansonandCommissionerWilliamsonrecommendthattheabovetariffratequotaand

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increasedratesofdutynotapplytoimportsfromthefollowingcountrieswithwhichtheUnitedStateshasFTAs:Australia,Colombia,CostaRica,theDominicanRepublic,ElSalvador,Guatemala,Honduras,Israel,Jordan,Nicaragua,Panama,Peru,andSingapore.TheyalsorecommendthatthetariffratequotaandincreasedratesofdutynotapplytoimportsfromtheCBERAbeneficiarycountries.ViceChairmanJohansonandCommissionerWilliamsonrecommendthatthePresidentdirecttheUnitedStatesDepartmentofLaborandtheUnitedStatesDepartmentofCommercetoprovideexpeditedconsiderationofanyapplicationfortradeadjustmentassistanceforworkersand/orfirmsthatareaffectedbysubjectimports.TheyrecommendthePresidentsconsiderationoftheproductexclusionsrequestedbyRespondentstowhichPetitionershavenotobjectedandhaveindicatedtheywouldworktodraftappropriateproductspecificexclusions.Finally,theyrecommendthatthePresidentalsoconsideranyappropriatefundingmechanismsthatmayfacilitateapositiveadjustmenttoimportcompetition.

CommissionerMeredithM.BroadbentrecommendsthatthePresidentimposeaquantitativerestrictiononimportsofCSPVproductsintotheUnitedStates,includingcellsandmodules,forafouryearperiod,administeredonaglobalbasis.Sherecommendsthatthequantitativerestrictionbesetat8.9gigawattsinthefirstyearandincreaseby1.4gigawattseachsubsequentyear.Inaccordancewithsection1102oftheTradeAgreementsActof1979(19U.S.C.2581)andthePresidentsauthorityinsection203(a)(3)(F)oftheTradeActof1974(19U.S.C.2253(a)(3)(F)),shealsorecommendsthatthePresidentadministerthesequantitativerestrictionsbysellingimportlicensesatpublicauctionataminimumpriceofonecentperwatt.SherecommendsthatthePresident,totheextentpermittedbylaw,authorizetheuseoffundsequaltotheamountgeneratedbyimportlicenseauctionstoprovidedevelopmentassistancetodomesticCSPVproductmanufacturersforthedurationoftheremedyperiod,suchasthroughauthorizedprogramsattheUnitedStatesDepartmentofEnergy(DOE).CommissionerBroadbentalsorecommendsthatthePresidentimplementotherappropriateadjustmentmeasures,includingtheprovisionoftradeadjustmentassistancebytheUnitedStatesDepartmentofLaborandtheUnitedStatesDepartmentofCommercetoworkersandfirmsaffectedbyimportcompetition.HavingmadeanaffirmativefindingwithrespecttoimportsfromMexicoundersection311(a)oftheNAFTAImplementationAct,sherecommendsthatthePresidentallocatenolessthan720megawattstoMexicoduringthefirstyearwithintheglobalquantitativerestriction,whichwouldexpandby115megawattseachyear.HavingmadeanegativefindingwithrespecttoimportsfromCanadaundersection311(a)oftheNAFTAImplementationAct,CommissionerBroadbentrecommendsthatsuchimportsbeexcludedfromthequantitativerestriction.Furthermore,sherecommendsthatthisquantitativerestrictionnotapplytoimportsfromAustralia,theCAFTADRcountries,Colombia,Israel,Jordan,Panama,Peru,Singapore,andtheCBERAbeneficiarycountries.

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CommissionsViewsonInjury

Basedonthefactsinthisinvestigation,wedeterminepursuanttosection202(b)oftheTradeActof1974(TradeAct)1thatcrystallinesiliconphotovoltaiccells(whetherornotpartiallyorfullyassembledintootherproducts)(CSPVproducts)arebeingimportedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjurytothedomesticindustryproducinganarticlelikeordirectlycompetitivewiththeimportedarticle.2Havingmadeanaffirmativedeterminationinthisglobalsafeguardinvestigation,wearerequiredtomakecertainadditionalfindingsundertheimplementingstatutesofcertainfreetradeagreements(FTAs)orunderstatutoryprovisionsrelatedtocertainpreferentialtradeprograms.3WefindthatimportsofCSPVproductsfromMexicoaccountforasubstantialshareoftotalimportsandcontributeimportantlytotheseriousinjurycausedbyimports.4WealsofindthatimportsofCSPVproductsfromCanadadonotaccountforasubstantialshareoftotalimportsanddonotcontributeimportantlytotheseriousinjurycausedbyimports.5Wefind

119U.S.C.2252(b).2TheCommissionsaffirmativeseriousinjurydeterminationisunanimous,reflectingtheviews

ofChairmanRhondaK.Schmidtlein,ViceChairmanDavidS.Johanson,andCommissionersIrvingA.WilliamsonandMeredithM.Broadbent.

3Specifically,theCommissionisrequiredtomakecertainadditionalfindingsundertheimplementingstatutesfortheNorthAmericanFreeTradeAgreement(NAFTA)(CanadaandMexico),theU.S.DominicanRepublicCentralAmericaFreeTradeAgreement(CAFTADR)(CostaRica,ElSalvador,Guatemala,Honduras,Nicaragua,andtheDominicanRepublic),theU.S.AustraliaFreeTradeAgreement,theU.S.KoreaFreeTradeAgreement(KORUS),theU.S.ColombiaTradePromotionAgreement,theAgreementbetweentheUnitedStatesofAmericaandtheHashemiteKingdomofJordanontheEstablishmentofaFreeTradeArea,theU.S.PanamaTradePromotionAgreement,theU.S.PeruFreeTradeAgreement,theU.S.SingaporeFreeTradeAgreement,andtheU.S./IsraelFreeTradeAgreementorunderstatutoryprovisionsrelatedtopreferentialtradeprograms(CaribbeanBasinEconomicRecoveryAct(CBERA)andGeneralizedSystemofPreferences(GSP)).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).

4TheCommissionsfindingregardingimportsofCSPVproductsfromMexicoundersection311(a)oftheNAFTAImplementationAct(19U.S.C.3371(a))reflectstheviewsofChairmanSchmidtlein,ViceChairmanJohanson,andCommissionersWilliamsonandBroadbent.AsdiscussedinmoredetailinsectionIIIbelow,inthisinvestigation,wemeasuredU.S.importsfromCanadaandMexicousingquestionnairedatabasedonthemoduleassemblylocationandmeasuredimportsfromallothersourcesbasedonadjustedU.S.importerquestionnairedatathatarebasedonthemanufacturinglocationoftheCSPVcell.

5TheCommissionsfindingregardingimportsofCSPVproductsfromCanadaundersection311(a)oftheNAFTAImplementingAct(19U.S.C.3371(a))reflectstheviewsofViceChairmanJohansonandCommissionersWilliamsonandBroadbent.Asexplainedbelow,ChairmanSchmidtleindoesnotjoinsectionV.A.1oftheseViews.Shefindsundersection311(a)oftheNAFTAImplementation(Continued)

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thatimportsofCSPVproductsfromKoreaareasubstantialcauseofthreatofseriousinjury,butthatimportsofCSPVproductsfromAustralia,CAFTADRcountries,Colombia,Jordan,Panama,Peru,andSingapore,individually,arenotasubstantialcauseofseriousinjuryorthreatthereof,undertherespectiveimplementinglegislation.6WealsofindthattheseriousinjurysubstantiallycausedbyimportstothedomesticindustryproducingalikeordirectlycompetitivearticledoesnotresultfromthereductionoreliminationofanydutyprovidedforundertheU.S.IsraelFreeTradeAgreement7orfromdutyfreetreatmentprovidedforundertheCaribbeanBasinEconomicRecoveryActprovisionsoftheCaribbeanBasinInitiativeTradeProgramortheGSPprogram.8

I. Background

EffectiveMay17,2017,theCommissioninstitutedthisinvestigation,Inv.No.201TA75,inresponsetoapetition,asamendedandproperlyfiledonMay17,2017bySuniva,Inc.(Suniva),aproducerofcrystallinesiliconphotovoltaic(CSPV)cellsandCSPVmodulesintheUnitedStates.9OnMay25,2017,SolarWorldpubliclystateditssupportforthepetitionasacopetitioner.10

(Continued)Act(19U.S.C.3371(a))thatimportsofCSPVproductsfromCanadaaccountforasubstantialshareoftotalimportsandcontributeimportantlytotheseriousinjurycausedbyimports.

6TheCommissionsfindingsregardingimportsofCSPVproductsfromAustralia,CAFTADRcountries,Colombia,Jordan,Korea,Panama,Peru,andSingaporereflecttheviewsofChairmanSchmidtlein,ViceChairmanJohanson,andCommissionersWilliamsonandBroadbent.

719U.S.C.2112note,U.S./IsraelFTAImplementingAct403(b),403(d).819U.S.C.2253(e)(6),2703e(2),2703e(4).TheCommissionsfindingsregardingimportsfrom

Israel,CBERAcountries,andGSPtradepreferencecountriesreflecttheviewsofChairmanSchmidtlein,ViceChairmanJohanson,andCommissionersWilliamsonandBroadbent.

982Fed.Reg.25331(June1,2017).SunivainitiallysubmittedapetitiononApril26,2017.OnMay1,2017,CommissionstaffissuedaletterrequestingthatSunivaclarifyitsdescriptionoftheimportedarticlesintendedtobecoveredbythepetition,providemoredetailsconcerningwhetherSunivawasrepresentativeofanindustrywithinthemeaningof19U.S.C.2252(a)(1),andsupplyadditionaldataontheperformanceindicatorsfortheindustryproducinganarticlelikeordirectlycompetitivewiththeimportedarticle.OnMay12,2017,Sunivaprovidedadditionalinformationtosupportitsallegations(includinganaffidavitindicatingthat***supportedthepetition).SunivasMay12,2017responseatExhibit6.OnMay17,2017,Sunivafurtheramendeditspetitionandprovidedareviseddescriptionoftheimportedarticles.TheCommissiondeterminedthatthepetition,asamended,wasproperlyfiledasofMay17,2017.

10ConfidentialReport,MemorandumINVPP119(Sept.11,2017),ascorrectedbyMemorandumINVPP139(Oct.31,2017)(CR)atI1;PublicReport,CrystallineSiliconPhotovoltaicCells(WhetherorNotPartiallyorFullyAssembledintoOtherProducts),Inv.No.201TA75,USITCPub.4739(Nov.2017)(PR)atI1.Togetherthetwopetitionersaccountedforthevastmajority(***percentofU.S.CSPVcellproductionbykWin2016,andforalargemajority(***percent)ofmoduleassemblyduringtheJanuary1,2012toDecember31,2016periodofinvestigation(POI).CRatIII22,III23;PRatIII11;CR/PRatTableIII5,TableIII7,TableIII8.

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PursuanttotheschedulingnoticepublishedintheFederalRegisteronJune1,2017,theCommissionheldapublichearingoninjuryissuesonAugust15,2017,11andvotedwithrespecttoinjuryissuesonSeptember22,2017.12TheCommissionheldapublichearingonremedyissuesonOctober3,2017,votedwithrespecttoremedyissuesonOctober31,2017,andtransmitteditsreporttothePresidentonNovember13,2017.

PartiesandNonPartiestotheInvestigation.RepresentativesofcopetitionersSunivaandSolarWorldappearedatthehearingsoninjuryandremedyissuesaccompaniedbycounsel,andtheysubmittedprehearingandposthearingbriefsoninjuryandremedy.

Severalrespondentinterestedpartiesalsoparticipatedintheinvestigation.Thefivesetsofinterestedpartiesthatappearedattheinjuryandremedyhearingswithcounselandsubmittedprehearingandposthearingbriefsoninjuryandremedyissuesincludedthefollowing:CanadianSolarSolutions,Inc.(CanadianSolar),SilfabSolarInc.(SilfabSolar),andHelieneInc.(Heliene)(collectivelyCanadianrespondents);13theSolarEnergyandPhotovoltaicProductsBranchoftheChinaChamberofCommerceforImportandExportofMachineryandElectronicProducts(CCCME);14theKoreaPhotovoltaicIndustryAssociation(KOPIA);15RECSolarPte.Ltd.andRECAmericas,LLC(RECAmericas)(collectivelyRECSolar);16andSunPowerCorp.,SunPowerCorporationSystems,SunPowerNorthAmerica,LLC,SunPowerCorp.Mexico,S.deR.L.deC.V.,SunPowerPhilippinesManufacturingLtd.,andSunPowerSolarMalaysiaSdn.Bhd.(collectivelySunPower).17Asixthgroupofinterested

11SeeTranscriptofCommissionsAugust15,2017HearingonInjuryIssues(InjuryHearingTr.).1282Fed.Reg.25331(June1,2017).13CanadianSolar,SilfabSolar,andHelieneareproducersandexportersofCSPVcellsand

CSPVmodulesfromCanada.CanadianrespondentsPrehearingInjuryBriefat4.14CCCMEmembersproduceCSPVcellsandCSPVmodulesinChina.CCCCMEsPrehearingInjury

Briefat1,Exhibit1.15HanwhaQCELLSAmerica,Inc.(HanwhaAmerica)submittedprehearingandposthearing

briefsoninjuryissues.HanwhaAmericaisanimporterwithaffiliatesthatmanufactureCSPVcellsand/orCSPVmodulesinCanada,China(includingHongKong),Germany,Korea,andMalaysia.CR/PRatTablesIV18toIV19;HanwhaAmericasPrehearingInjuryBriefat910.

16RECSolarandRECAmericasareaforeignproducer/exporterandanimporterofCSPVproductsfromSingapore.RECSolarsPrehearingInjuryBriefat8.

17SunPowerreportsthatitinvestsinU.S.researchanddevelopmenttosupportthemanufactureofCSPVcellsandCSPVmodules,manufacturesCSPVcellsinMalaysiaandthePhilippines,assemblesCSPVcellsintomodulesinMexico,andatthebeginningofthePOIassembledmodulesinthePhilippinesfromaChinesetollproducer(***).SunPowersPrehearingInjuryBriefat23.SunPowerrecentlyenteredintoaCSPVcellandCSPVmodulemanufacturingjointventureinChinathatitreportswillbeentirelydedicatedtononU.S.markets.SunPowersPosthearingInjuryBriefat11,Appendixatvii.Additionally,SunPowerinvested$25millioninaU.S.CSPVcellandCSPVmodulefacilityinSanJose,CAwhereitbeganproductioninMay2017withthestatedintentiontoserveresidentialandcommercialapplications.SunPowersPosthearingInjuryBrief,Appendixati.ItpreviouslypartneredwithFlextronicstomanufactureCSPVmodulesinMilpitas,CA,butthatfacilitywasnotadequatelyscaled,soSunPowerdetermineditwasmorecostadvantageoustointegratetheknowledgedevelopedattheMilpitasfacilityintoitsothermanufacturinglocations.Id.atii.

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parties(VinaSolarTechnologyCo.Ltd.(VinaSolar);BovietSolarUSALtd.(BovietUSA);andBovietSolarTechnologyCo.,Ltd.(Boviet)(collectivelyVietnameseRespondents))submittedjointprehearingbriefsoninjuryandprehearingandposthearingbriefsonremedy.18Seveninterestedpartiessubmittedprehearingandposthearingbriefsonremedy(AuxinSolar,19ChangzhouTrina,20GoalZeroLLC,21MissionSolar,22NextEraEnergyInc.,23SolatubeInternationalInc.,24andtheTaiwanPhotovoltaicIndustryAssociation(TPVIA)),25andtwootherinterestedparties(SunrunandTesla)submittedposthearingbriefsonremedy.26

Exceptasotherwiseindicated,thefollowingelevenforeigngovernmentsfiledprehearinginjuryandremedysubmissionsanddeliveredoralstatementsattheCommissionshearingsoninjuryandremedy:Brazil,Canada(alsofiledposthearingsubmissionsoninjuryandremedy);China(onlyfiledposthearinginjuryandremedysubmissions);EuropeanCommission;Indonesia(alsofiledaposthearinginjurysubmission);Korea(alsofiledaposthearingremedysubmission);Mexico(alsofiledaposthearinginjurysubmission);Singapore(onlyfiledaprehearinginjurysubmission);Thailand(onlyfiledaprehearinginjurysubmissionandaposthearingremedysubmission);Taiwan(alsofiledaposthearingremedysubmission);andVietnam(onlyfiledaposthearingremedysubmission).

Fortyninefirms,industrygroups,orotherorganizationsthatarenotinterestedpartiesand/orarenotpartiestotheinvestigationalsofiledsubmissionsoninjuryand/orremedyissues.27Oneofthem,SEIA,whichisnotaninterestedpartyassociation,28filedjoint

18VinaSolar,BovietUSA,andBovietareforeignproducersorimportersofmerchandisefromVietnam.CR/PRatTableI3,TableIV68.

19AuxinSolarisaU.S.producerofCSPVproducts.CR/PRatTableIII3.20ChangzhouTrinaSolarisaforeignproducerofCSPVproducts.21GoalZeroisanimporterofCSPVproducts.CR/PRatTableII3.22MissionSolarisaU.S.producerandimporterofCSPVproducts.CR/PRatTableI2,TableI3.23NextEraEnergyisanimporterofCSPVproducts.CR/PRatTableII3.24SolatubeisanimporterofCSPVproducts.CR/PRatTableII3.25TPIAisanassociation,amajorityofwhichareproducersandexportersfromTaiwan.26SunrunisanimporterofCSPVproducts,andTeslaisanimporter,producer,andpurchaser.27Eachofthefollowingfirms,groups,orotherorganizationssubmittedstatementsoninjury

and/orremedy:AdvancedEnergyBuyersGroup(coalitionoflargeenergybuyers);AllianceforAmericanManufacturing(domesticlabor/businesspartnership);AlmondAllianceofCalifornia;AmericanCouncilonRenewableEnergy(nonprofitorganizationrepresentingrenewableenergydevelopers,manufacturers,financialinstitutions,corporateendusers,utilities,andgridtechnologyproviders);ArcadiaPower(renewableenergysoftwareandtechnologycompany);BlueGreenEnergyLLCCarolinaSolarEnergy(developerofutilitysolarprojectsinNorthCarolinaandVirginia);CaliforniaCitrusMutual;CaliforniaCottonGinnersandGrowersAssociation;CaliforniaFreshFruitAssociation;CaliforniaPoultryAssociation;CenterforBiologicalDiversity;CoalitionforProsperousAmerica(coalitionofmanufacturers,agricultural,worker,consumerandcitizeninterests);ColoradoCleantechIndustriesAssociation;CompleteSolar(designerandinstaller);DukeEnergy(energyprovider);DuPontPhotovoltaicandAdvancedMaterials(manufacturerofpasteandfilmrawmaterialsandphotovoltaicsystemowneranduser);ElectricalReliabilityCoordinatingCouncil(coalitionofpowergeneratingcompanies);DavidEllis;EnergyTradeActionCoalition;EnerparcInc.(engineeringservicesprovider);(Continued)

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submissionsoninjuryissueswithoneofitsimporter/foreignproducermembers(SunPower);manyrespondentinterestedpartiesexpresslysupportmost,ifnotall,ofSEIAsarguments,soitsargumentsmaybereferredtohereinasrespondentsarguments.

DataCoverage.U.S.industrydataarebasedonquestionnaireresponsesfrom16firmsthatareestimatedtohaveaccountedforallknownU.S.productionofCSPVcellsand63.9percentofU.S.productionofCSPVmodulesin2015.29U.S.importdataarebasedonquestionnaireresponsesof56firmsthatareestimatedtohaveaccountedfor82.6percentofU.S.importsofCSPVcellsandCSPVmodulesin2016.30TheCommissionalsoreceivedquestionnaireresponsesfrom100foreignproducers/exportersofCSPVproducts.31

(Continued)EnphaseEnergy,Inc.(U.S.producerofsolarmicroinverters);FirstSolar(formerproducerofCSPVproducts,thinfilmproducer,projectdeveloper,engineering,procurement,construction,operation,andmanagementservicesprovider);GeorgiaChamberofCommerce;Gigawatt(developer,distributor,installer);HenryHielsmair(consultant);HeritageFoundation(nonprofitresearchinstitution);HunterHumphrey(solardeveloper);InovateusSolar(projectdeveloper);MountingSystemManufacturers;NationalElectricalContractorsAssociation;NationalGrid(energyprovider);OnyxSolarEnergy(developer,manufacturerofarchitecturalphotovoltaicglass);PG&ECorp.andEdisonInternational(utilities);PTSkyEnergyIndonesia(foreignproducer/exporterfromIndonesia);RStreet(thinktank);RECOMAG(modulemanufacturerinEurope,powerdistributor);DanReicher;SeminoleFinancialServices;SigoraSolar(designerandinstaller);SKC(manufacturerofethylvinylacetatesheets);SolarEnergyIndustriesAssociation(SEIA)(nonprofittradeassociationofinstallers,projectdevelopers,contractors,andfinancers);ShanghaiBYDCo.andBYD(Shanghai)IndustrialCo.Ltd.(foreignproducer);SteelManufacturersAssociation;Sunfolio&OnePlanetInfrastructure(developer);SunTegra(developerandsellerofsmaller,lowwattagesolarproducts);Technet(networkoftechnologychiefexecutiveofficersandseniorexecutives);U.S.polysiliconindustry(HemlockSemiconductorOperationsLLC,WackerPolysiliconNorthAmericaLLC,andRECSiliconInc.);WesternAgriculturalProcessorsAssociation;and8minutenergyRenewables(8minutenergy)(projectdeveloper)(supportedbynonpartyutilitysolardevelopers174PowerGlobalCorporation,CypressCreekRenewables,andIntersectPower).

28Interestedpartiesinclude,amongothers,foreignmanufacturers,producers,exporters,orU.S.importersofanarticlewhichisthesubjectofaninvestigation,foreigngovernments,U.S.manufacturers,producers,orwholesalers,andcertifiedunionsorrecognizedunionsorgroupsofworkersthatarerepresentativeofadomesticindustry.Certainassociationsarealsointerestedparties,ifamajorityoftheirmembersiscomposedofinterestedparties.19C.F.R.206.17(a)(3)(iii).AmajorityofSEIAsmembers,however,isnotcomposedofinterestedparties,soitisnotaninterestedparty.EDISDoc.612890.

29CRatI4;PRatI3.30CRatI5;PRatI3.Respondentsstatethatimporterquestionnairedatarepresentthevast

bulkofimportsofsubjectmerchandiseintotheU.S.market.SEIAsPosthearingInjuryBrief,AppendixAat107108(attributingatleastaportionofthedifferentialbetweenimporterquestionnairedataandofficialimportstatisticstooutofscopethinfilm).

31Foreignproducerresponsesandtheestimatedcoverageforeachcountryareasfollows:Brazil(1firmaccountingforlessthan***percentofmoduleproductioncapacity);Canada(5firmsaccountingforapproximately89percentof2016modulecapacity);China(35firmsaccountingforapproximately57percentofCSPVcellproductionand67percentofmoduleproductionin2016);(Continued)

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II. DomesticIndustryProducingaProductthatisLikeorDirectlyCompetitivewiththeImportedArticle

A. LikeorDirectlyCompetitiveDomesticProduct

Inmakingdeterminationsinglobalsafeguardinvestigations,theCommissionexaminesthreestatutorycriteria.Specifically,tomakeanaffirmativedetermination,theCommissionmustfind

(1)anarticleisbeingimportedintotheUnitedStatesinincreasedquantities;(2)thedomesticindustryproducinganarticlethatislikeordirectlycompetitivewiththeimportedarticleisseriouslyinjuredorthreatenedwithseriousinjury;and(3)thearticleisbeingimportedinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjuryorthreatofseriousinjurytothedomesticindustry.32

Beforeconsideringwhetherthethreestatutorycriteriaaresatisfied,theCommission

firstdefinesthedomesticindustry.Thestatutedefinesthetermdomesticindustryastheproducersasawholeofthelikeordirectlycompetitivearticleorthoseproducerswhosecollectiveproductionofthelikeordirectlycompetitivearticleconstitutesamajorproportionofthetotaldomesticproductionofsucharticle.33TheCommissiondefinesthedomesticindustry

(Continued)Germany(6firmsaccountingforallknownCSPVcellcapacityand51percentofmoduleproductioncapacityin2016);India(5firmsaccountingforapproximately***percentofCSPVcellproductioncapacityand***percentofmoduleproductioncapacity);Indonesia(3firmsaccountingforapproximately***percentofmoduleproductioncapacity);Japan(1firmaccountingforapproximately***percentofCSPVcellproductionand***percentofmoduleproductionin2016);Korea(4firmsaccountingforapproximately***percentofCSPVcellproductioncapacityand***percentofmoduleproductioncapacityin2016);Malaysia(10firmsaccountingforallknownCSPVcellcapacityand93percentofmodulecapacityin2015);Mexico(3firmsaccountingforapproximately***percentofCSPVcellcapacityandapproximately***percentofmodulecapacityin2016);Netherlands(1firmaccountingforallknownproduction);Philippines(1firmaccountingforallknownproduction);Singapore(1firmaccountingforallknownproduction);Taiwan(15firmsaccountingforapproximately82percentofCSPVcellcapacityand31percentofmodulecapacityin2016);Thailand(4firmsaccountingforapproximately52percentofCSPVcellproductioncapacityin2016and44percentofmodulecapacityin2016);Vietnam(5firmsaccountingforapproximately***percentofCSPVcellcapacityand***percentofmodulecapacityin2016).CRatI5toI7;PRatI3toI5.RespondentsstatethattotheextentthatdatafromanymajorCSPVexportingcountryweremissing,theCommissionsPrehearingReportprovidedadequatecoverageofsuchcountriesusingalternativedatasources.SEIAsPosthearingInjuryBrief,Appendix1at107108.

32See19U.S.C.2252(b)(1)(A).3319U.S.C.2252(c)(6)(A)(1).

11

intermsofeachlikeordirectlycompetitiveproductandevaluatestheimpactofthepertinentimportsonthefacilitiesandworkersproducingeacharticle.34

Thelegislativehistorydistinguishesbetweenproductsthatarelikeandproductsthataredirectlycompetitivewiththeimportedarticles,explainingthatlikearticlesarethosewhicharesubstantiallyidenticalininherentorintrinsiccharacteristics(i.e.,materialsfromwhichmade,appearance,quality,texture,etc.),whereasdirectlycompetitivearticlesarethosewhich,aresubstantiallyequivalentforcommercialpurposes,thatis,areadaptedtothesameusesandareessentiallyinterchangeabletherefor.35

Indeterminingwhatconstitutesthelikeordirectlycompetitiveproduct,theCommissionhasconsideredanumberoffactors.Thelistoffactorsconsideredisnotfixed,andtheweightgiventoanyonefactormayvaryfromcasetocasedependinguponthefacts.36Thelist,whichderivesfromCommissionpractice,hasincludedthephysicalpropertiesofthearticle,itscustomstreatment,itsmanufacturingprocess(whereandhowitismade,e.g.,inaseparatefacility,usingcertainmachinesandlaborskills),theproductsuses,andthemarketingchannelsthroughwhichtheproductissold.37ThestatutedoesnotprescribethesespecificfactorsnordoesitlimitthefactorsthattheCommissionmayconsiderinmakingitsdetermination.Thus,inconductingitsanalysis,theCommission(1)considersthelistoffactors,(2)evaluatesthefactorsintermsofthefactsintheinvestigation,and(3)looksforcleardividinglinesbetweenproducts,disregardingminorvariations.38

34See,e.g.,Steel,Inv.No.201TA73,USITCPub.3479at29n.25(Dec.2001);ExtrudedRubberThread,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).

35H.R.Rep.No.571,93rdCong.,1stSess.45(1973);SenateFinanceCommittee,ReportonTradeReformActof1974H.R.10710,S.Rep.No.1298,93rdCong.,2dSess.at12122(1974).See,e.g.,Mushrooms,Inv.No.201TA43,USITCPub.1089at8,1112(Aug.1980)(theintentofthedraftingcommitteeswasthatlikehastodowiththephysicalidentityofthearticlesthemselves,whiledirectlycompetitiverelatesmoretothenotionofcommercialinterchangeableness);seealsoUnitedShoeWorkersofAm.v.Bedell,506F.2d174,18586,19091(D.C.Cir.1974)(discussingmeaningoflikeanddirectlycompetitiveinthecontextofarequestforadjustmentassistanceundertheTradeExpansionAct).

36See,e.g.,CertainSteelWireRod,Inv.No.201TA69,USITCPub.3207atI8(Jul.1999);LambMeat,Inv.No.201TA68,USITCPub.3176atI10(Apr.1999);WheatGluten,Inv.No.201TA67,USITCPub.3088atI9(Mar.1998).

37See,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);FreshWinterTomatoes,Inv.No.201TA64(ProvisionalReliefPhase),USITCPub.2881atI7(Apr.1995)(ViewsofWatson,Crawford,andBragg);BroomCornBrooms,Inv.No.302NAFTA1(ProvisionalReliefPhase),USITCPub.2963atI14(May1996).

38See,e.g.,StainlessSteelTableFlatware,Inv.No.201TA49,USITCPub.1536at34(June1984).

12

Thenoticeofinstitutiondescribedtheimportedarticlesunderinvestigationasfollows:CSPVcells,whetherornotpartiallyorfullyassembledintootherproducts,including,butnotlimitedtomodules,laminates,panels,andbuildingintegratedmaterials.Theinvestigationcoverscrystallinesiliconphotovoltaiccellsofathicknessequaltoorgreaterthan20micrometers,havingap/njunction(orvariantthereof)formedbyanymeans,whetherornotthecellhasundergoneotherprocessing,including,butnotlimitedtocleaning,etching,coating,and/oradditionofmaterials(including,butnotlimitedto,metallizationandconductorpatterns)tocollectandforwardtheelectricitythatisgeneratedbythecell.

Includedinthescopeoftheinvestigationarephotovoltaiccellsthatcontaincrystallinesiliconinadditiontootherphotovoltaicmaterials.Thisincudes,butisnotlimitedtopassivatedemitterrearcontact(PERC)cells,heterojunctionwithintrinsicthinlayer(HIT)cells,andothersocalledhybridcells.

Articlesunderconsiderationalsomaybedescribedatthetimeofimportationascomponentsforfinalfinishedproductsthatareassembledafterafterimportation,including,butnotlimitedto,modules,laminates,panels,andpanels,andbuildingintegratedmaterials.39

39CSPVcells,whetherornotpartiallyorfullyassembledintootherproducts,areexcludedfromthescopeoftheinvestigationiftheCSPVcellsweremanufacturedintheUnitedStates.Alsoexcludedfromtheinvestigationarethinfilmphotovoltaicproductsproducedfromamorphoussilicon(aSi),cadmiumtelluride(CdTe),orcopperindiumgalliumselenide(CIGS).Alsoexcludedfromthescopeoftheinvestigationarecrystallinesiliconphotovoltaiccells,notexceeding10,000mm2insurfacearea,thatarepermanentlyintegratedintoaconsumergoodwhosefunctionisotherthanpowergenerationandthatconsumestheelectricitygeneratedbytheintegratedcrystallinesiliconphotovoltaiccell.Wheremorethanonecellispermanentlyintegratedintoaconsumergood,thesurfaceareaforpurposesofthisexclusionshallbethetotalcombinedsurfaceareaofallcellsthatareintegratedintotheconsumergood.82Fed.Reg.25332(June1,2017).TheCommissionnotedthatforCustomspurposes,theCSPVcellscoveredbytheinvestigationareprovidedforunderHarmonizedTariffScheduleoftheUnitedStates(HTSUS)subheading8541.40.60.Withinthat8digitsubheading,CSPVcellsthatareassembledintomodulesorpanelsareimportedunderHTSUSstatisticalreportingnumber8541.40.6020,whileCSPVcellsthatarenotassembledintomodulesandarepresentedseparatelyareimportedunderstatisticalreportingnumber8541.40.6030.InvertersorbatterieswithCSPVcellsattachedareprovidedforunderHTSUSsubheadings8501.61.00and8507.20.80,respectively.Inaddition,CSPVcellscoveredbytheinvestigationmayalsobeclassifiableasDCgeneratorsofsubheading8501.31.80,whensuchgeneratorsareimportedwithCSPVcellsattached.WhileHTSUSprovisionsareprovidedforconvenience,thewrittenscopeisdispositive.Id.

13

TheinvestigationsscopecoversthenoncellportionofafinishedCSPVmodule(suchasthealuminumframe),assumingthattheCSPVcellsarecovered.40

WefindthatdomesticallymanufacturedCSPVcells,whetherornotpartiallyorfullyassembledintootherproducts,arelikeimportedCSPVcells,whetherornotpartiallyorfullyassembledintootherproducts.Specifically,domesticallyproducedCSPVcellsareliketheimportedCSPVcellsanddomesticallyproducedCSPVmodulesarelikeimportedCSPVmoduleswithinthescopeoftheinvestigation.

DuringthePOI,bothU.S.producersandimporterssuppliedawidevarietyofoverlappingCSPVproductstotheU.S.market,includingmonoandmulticrystallineproducts,passivatedemitterrearcontact(PERC)products,heterojunctionwithintrinsicthinlayer(HIT)products,andhybridproducts.41TheseimportedanddomesticCSPVproductswereavailableinsimilarforms,includingcells,laminates,andmodules(alsocalledpanels),withmostintheformofmodules.42ImportedandU.S.manufacturedCSPVproductsweresoldinarangeofwattagesandconversionefficiencies,andmodulesweresoldin60celland72cellforms.43ImportedandU.S.manufacturedCSPVproductsalsoweresoldinsimilarchannelsofdistributiontooverlappingsegmentsofthemarket,primarilyforuseaspartofsolarpowersystemsthatconvertsunlightintoelectricity.44TheforeignandU.S.producersutilizedsimilarmanufacturingfacilitiesandprocessestomanufactureCSPVproducts.45Additionally,mostU.S.producers,importers,andpurchasersreportedthatU.S.producedCSPVproductswereinterchangeablewithimportedCSPVproducts.46Forallofthesereasons,wefindthatdomesticallyproducedCSPVproductsareliketheimportedCSPVproducts.

WefurtherfindasingledomesticproductconsistingofallformsofCSPVcells,whetherornotpartiallyorfullyassembledintootherproducts.ThevastmajorityofimportsanddomesticproductioninvolvedCSPVcellsorCSPVmodules.47AlthoughCSPVmodulesarenotlikeCSPVcells,thefactsinthisinvestigationindicatethattheyaredirectlycompetitive

40Accordingtopetitioners,sincethescopedoesnotcontainanexplicitexclusionforthenoncellportionsofthemodule(suchasaluminumframes),theyarecoveredbythescope.PetitionersexplainthattheoverwhelmingmajorityofCSPVcellsareimportedaspermanentlyintegratedpartsofCSPVmodules,whichcannotberemovedfromthemodules;theyarguethatthenoncellportionsofthemoduleareintegralpartsofthemodulewithoutwhichitwouldnotfunction.Moreover,theyargue,separatingthevalueofthecomponentsfromthatofthecellsforremedyassessmentpurposeswouldbeextremelydifficultandwouldgiverisetoseriousenforcementissues.SolarWorldsPosthearingInjuryBriefatExhibit1,sectionXVat8990;SunivasPosthearingInjuryBriefatExhibit9atQuestion10.Respondentsagree.See,e.g.,SunPowersPosthearingInjuryBriefat3atn.2;SEIAsPosthearingInjuryBriefatAppendixAat1415.

41CR/PRatTableII5(importedtechnologies),TableIII6(U.S.manufacturedtechnologies).42CR/PRatTableII4(importedforms),TableIII11(U.S.manufacturedforms).43CR/PRatTableV11;CRatI19toI21;PRatI14.44CR/PRatTableI1;CRatI15;PRatI11.45CRatI24toI32;PRatI18toI24.46CR/PRatTableV8.47CR/PRatTableII4(importedforms),TableIII11(U.S.manufacturedforms).

14

withinthemeaningofthesafeguardstatuteandthattherearenoclearlinesdifferentiatingthem.48Asindicatedabove,theimportedarticlesareprovidedforinsubheading8541.40.60(statisticalreportingnumbers8541.40.6020(solarcellsassembledintomodulesormadeupintopanels)and8541.40.6030(solarcells,other))oftheHTSUS.49SinceCSPVcellsarethebasicelementofaCSPVmodule,bothcellsandmodulessharethesameprimaryphysical

48Intheantidumpingandcountervailingdutyinvestigationsconductedpreviously,theCommissiondefinedasingledomesticlikeproductcorrespondingtothescopethatincludedCSPVcellsandCSPVmodules.CrystallineSiliconPhotovoltaicCellsandModulesfromChina,Inv.Nos.701TA481and731TA1190(Final),USITCPub.4360at412(Nov.2012)(CSPVI);CrystallineSiliconPhotovoltaicProductsfromChinaandTaiwan,Inv.Nos.701TA511and731TA1246to1247(Final),USITCPub.4519at815(Feb.2015)(CSPVII).TheCommissionsdomesticlikeproductdeterminationsinthoseantidumpingandcountervailingdutyinvestigationsarenotdispositiveorbindingonthedeterminationofthelikeordirectlycompetitiveproductinthissafeguardinvestigationforseveralreasons.See,e.g.,Steel,Inv.201TA75,USITCPub.3479at2732(Dec.2001);FreshTomatoesandBellPeppers,Inv.No.201TA66,USITCPub.2985atI7(Aug.1996).Forexample,thetwostatutoryschemeshavedifferentpurposes,withantidumpingandcountervailingdutyinvestigationsnarrowlyaimedatremedyingunfairlytradedimportsandglobalsafeguardinvestigationspreventingorremedyingseriousinjurytodomesticproductiveresourcesfromallimports.Steel,Inv.No.201TA075,USITCPub.3479at30(quotingStainlessSteelandAlloyToolSteel,201TA048,USITCPub.1377at16n.21(May1983)).Globalsafeguardinvestigationsareconcernedwithseriousinjurytotheproductiveresources(e.g.,employees,physicalfacilities,andcapital)employedinthedivisionsorplantsinwhichthearticleinquestionisproduced.H.R.Rep.9371at46(1973);seealsoH.R.Rep.100576at66162(1988);S.Rep.10071at4647(1987);H.R.Rep.10040at8696(1987).Thestatutoryschemesdefinedomesticindustrydifferently.Compare19U.S.C.2252(c)(6)(A)(1)(domesticproducersasawholeofthelikeordirectlycompetitivearticle)with19U.S.C.1677(4)(A),1677(10)(producersasawholeofadomesticlikeproduct,whichisdefinedasaproductwhichislike,orintheabsenceoflike,mostsimilarincharacteristicsanduseswiththeimportssubjecttoinvestigation).Additionally,thescopesoftherespectiveantidumpingandcountervailingdutyandsafeguardinvestigationsmaybebroaderornarrower,and/orthefactualrecordsdifferduetotheglobalversuscountryspecificnatureoftheinvestigations,thetimeperiodsinvolved,andtheparticularissuesthatpartieschoosetodisputeinagivenproceeding.Furthermore,theCommissionconsidersdifferentfactorstoanalyzedomesticlikeproductquestionsinantidumpingandcountervailingdutyinvestigationsthanthefactorsdiscussedaboveforglobalsafeguardinvestigations.See,e.g.,NipponSteelCorp.v.UnitedStates,19CIT450,455n.4(Apr.3,1995)(physicalcharacteristicsanduses;interchangeability;channelsofdistribution;customerandproducerperceptions;commonmanufacturingfacilities,processes,andemployees;andwhereappropriateprice);CSPVII,USITCPub.4519at1315(whethertheupstreamproductisdedicatedforuseinthedownstreamproduct;whethertheyaresoldinseparatemarkets;differencesinphysicalcharacteristicsandfunctions;differencesinvalue;extentofprocessesusedtotransformupstreamintodownstreamarticles).

49Thearticlesalsomaybeimportedaspartsorsubassembliesofgoodsprovidedforinsubheadings8501.31.80,8501.61.00and8507.20.80.InvertersorbatterieswithCSPVcellsattachedareprovidedforunderHTSUSsubheadings8501.61.00and8507.20.80,respectively.Inaddition,CSPVcellscoveredbytheinvestigationmayalsobeclassifiableasDCgeneratorsofsubheading8501.31.80,whensuchgeneratorsareimportedwithCSPVcellsattached.CRatI52;PRatI38.

15

properties.50ThecharacteristicsofCSPVcellsthatenablethemtoconvertsunlightintoelectricityarenotaffectedbythemoduleassemblyprocessbutareanessentialfunctionofthemoduleinCSPVsolarsystems;likewise,CSPVmodulescannotservetheirintendedfunctionofconvertingsunlightintoelectricitywithouttheinclusionofCSPVcells.51TheprocessesusedtomanufactureCSPVmodulesfromCSPVcellsaretechnologicallysophisticated,morelaborintensivethanmanufacturingCSPVcells,52andaddvaluetotheproduct,buttheyenhanceratherthanchangethebasicfunctionoftheCSPVcells,whichistoconvertsunlightintoelectricity.53AlthoughanumberoffirmsareindependentmoduleassemblerswithnoU.S.cell

50CSPVcellsusemonoormulticrystallinesiliconcellstoconvertsunlightintoelectricity.CRatI15;PRatI11.Thesecellsarestrungtogether,sealed,laminated,andusuallyframedtomakeCSPVmodules(alsoknownassolarpanels).CRatI15toI18;PRatI11toI13.

51CRatI15toI21;PRatI11toI16.52Therearesomedifferencesinhowthetwomaintypesofcells(monocrystallineand

multicrystallinesilicon)aremanufactured,althoughbotharemanufacturedfromsiliconthatisrefinedtypicallyusingtheSiemensmethodorfluidizedbedreactortechnologyandthenmanufacturedintoawafer.CRatI19,I25toI26;PRatI14,I19.Toproduceamonocrystallinewafer,manufacturersmeltpolysiliconrocksandasmallamountofboronina2,500degreeCzochralskifurnace,lowerarotatingseedcrystalintothefurnace,andslowlyraisethecrystaloutofthemeltwhilegrowingasinglelongcrystal.Aftercoolingthecrystal,manufacturerscutoffitstopandtail,cutthecrystalintoequallengthingots,squaretheingot(leavingroundedcorners),andslicetheingotsintowafers(typicallyusingadiamondwiresaw).CRatI26toI27;PRatI19toI21.Toproducemulticrystallinewafers,manufacturersloadpolysiliconintoacrucible,loadthecrucibleintoadirectionalsolidificationsystemsfurnace,andcastthepolysiliconintoingots.Theycuttheingotsintoblocksandslicethemintosquarewafersusingawiresaw.CRatI28;PRatI21.ManufacturersmanufactureCSPVcellsusingacapitalintensivemanufacturingprocessthatrequiresaskilledworkforceandgenerallyinvolvesatleastsevenmajorsteps:cleaningandtexturingthewaferstoreducesunlightreflectionandincreaselightabsorption;diffusingphosphorusintoathinlayerofthewaferssurfaceatahighheattogivethewaferanegativepotentialelectricalorientation;isolatingathinlayerofsiliconfromtheedgeofthecelltoseparatethepositiveandnegativelayers;coatingthecellswithasiliconnitrideantireflectivecoatingtoincreasesunlightabsorption;usingsilverpastetoprintthinmetalfingersinstripsontothecellthatwillconnecttotherestofthemoduleviabusbarsor/andprintingathinlayer(typicallyaluminum)ontheothersideofthecell;cofiringthecellsinahightemperaturefurnacetoimbedthesilverpasteinthesurfaceofthesiliconlayerandformareliableelectricalcontact;andtestingandsortingthecellsaccordingtotheircharacteristicsandefficiency.CRatI28toI30;PRatI21toI23.

53ToassembleCSPVcellsintomodules,manufacturersuseautomatedandsophisticatedyetrelativelymorelaborintensiveprocessesinwhichtheyassembleintoalaminatesolderedstringsofCSPVcellsonarectangularmatrixsealedwithethylvinylacetateandabacksheet(commonlyaplasticfilmcompositeorglassforsomeapplicationssuchasbifacialmodules)andthenattachaframeandjunctionbox.TheessentialcharacteristicofCSPVcellstoconvertsunlightintoelectricityisenhancedwhenmultipleCSPVcellsarestrungtogether,laminated,framed,andconnectedtoaninverterasCSPVmodules.ACSPVmodulegeneratesmorepowerthananindividualCSPVcellusedtomakethemodule,thejunctionboxpermitsmodulestobeconnectedtoaninverterthatconvertsthesystemsdirectcurrentintoalternatingcurrentforadditionaltransmission,andlaminationpermitstheCSPVcellstowithstandtheelementsinordertoconvertsunlightintoelectricityoveralongerusefullife.The(Continued)

16

manufacturingoperations,54mostproductionofCSPVcellsandCSPVmodulesduringthePOIwasperformedintheUnitedStatesbyintegratedproducersthatmanufactureandinternallyconsumeCSPVcellsfortheirCSPVmoduleoperations.55CSPVcellsarededicatedforuseintheproductionofCSPVmodules.56OnlyafractionofU.S.manufacturedCSPVcellsaresoldinthecommercialmarket,andeventhen,CSPVcellsareusedtomanufactureCSPVmodules.57BothCSPVcellsandCSPVmodulesareintegratedintophotovoltaicsolarsystemsthatconvertsunlightintoelectricityforuseinresidential,commercial,andutilityapplications.58Finally,CSPVcellsrepresentasubstantialportionofthetotalcostoffinishedCSPVmodules,59andpricesofcellsgenerallycorrelatedwithmodulepricesduringthePOI.60Forthesereasons,wedefineasingledomesticproductcorrespondingtotheimportedproductswithinthescopeoftheinvestigationthatincludesCSPVcellsandCSPVmodules.61

B. DomesticIndustry

Thetermdomesticindustryisdefinedinsection202(c)(6)(A)(i)oftheTradeActtomean

withrespecttoanarticle,thedomesticproducersaswholeofthelikeordirectlycompetitivearticleorthoseproducerswhosecollectiveproductionofthelikeor

(Continued)assemblyprocessdoesnotchangetheessentialcharacteristicsoftheCSPVcells.CRatI16toI18,I31toI32;PRatI13,I24.

54The***domesticCSPVcellproducersduringthePOIwereSolarWorldandSuniva,whichtogetheraccountedforthevastmajority(***percent)ofU.S.CSPVcellproductionbykWin2016.***werethelargestU.S.assemblersofCSPVmodules,accountingfor***percent(***),***percent(***),and***percent(***)ofU.S.moduleassemblyduringthePOI.CRatIII22,III23;PRatIII11;CR/PRatTableIII5,TableIII7,TableIII8.

55CRatI37toI38,III27,III31;PRatI28,III15,III17;CR/PRatTableI1,TableII4,TableIII9,TableIII11.

56CSPVcellsaresometimesusedtomakenonstandardsizemodulesfortheverysmallbuildingintegratedphotovoltaicmarket.Buildingintegratedphotovoltaicproducts,suchassolarshinglesorsolarwindows,incorporatesolarcells(oftenthinfilmandsometimesCSPVcells);theyareintegratedintothebuildingenvelope,suchasthefaadeorroof,takingoverthefunctionofroofshinglesorglasswhilealsoproducingelectricity.CRatI21;PRatI16;CR/PRatTableII4(importedforms),TableIII11(U.S.manufacturedforms)(questionnairerespondentsreported***U.S.importsand***domesticproductionofbuildingintegratedproducts).

57CRatI37toI38,III27,III31;PRatI28,III15,III17;CR/PRatTableI1,TableII4,TableIII9,TableIII11.

58CRatI15,I17,I22toI23,I33toI37;PRatI11,I12,I17,I28.59CRatIII50;PRatIII26;CR/PRatTableIII22.60CR/PRatFigureV13.61Thisisthedefinitionadvocatedbypetitioners.Moreover,intheircommentsonthedraft

questionnairesforthisinvestigation,nopartyaskedtheCommissiontocollectdataconcerninganypossiblealternativedefinition.CRatI14toI15&n.48;PRatI10&n.48.

17

directlycompetitivearticleconstitutesamajorproportionofthetotaldomesticproductionofsucharticle.62

ThisdefinitionwasaddedbytheUruguayRoundAgreementsAct(URAA)andcodifiedexistingCommissionpractice.63

TheCommissionhasbroaddiscretiontodeterminewhatconstitutesthedomesticindustryproducingalikeordirectlycompetitivearticleinglobalsafeguardinvestigations,generallyadheringtotheprincipalthat{t}heindustryshouldbedefinedinamannerwhichallowsforameaningfulanalysisofthestatutorycriteriainlightofthelegislativehistoryofsection201.64Theconceptofindustryemployedinsection201oftheTradeActisnotthesameasthatusedintheantidumpingandcountervailingdutyprovisionsofTitleVII.65AstheCommissionhasstated,

TitleVIIisnarrowlyaimedatremedyingthespecificadvantagesimportsmaybereceivingfromunfairtradepractices.Thepurposeofsection201eitheristopreventorremedyseriousinjurytodomesticproductiveresourcesfromallimports.Inlightofthepurposeofsection201andincontrasttoTitleVII,thesharingofproductiveprocessesandfacilitiesisafundamentalconcernindefiningthescopeofthedomesticindustryundersection201.66ThelegislativehistorytotheTradeActindicatesthattheconcerninasafeguard

investigationisthequestionofseriousinjurytotheproductiveresources(e.g.,employees,physicalfacilities,andcapital)employedinthedivisionsorplantsinwhichthearticleinquestionisproduced.67

Consistentwithourdefinitionofthelikeordirectlycompetitivedomesticproduct,wedefinethedomesticindustryasallU.S.producersofCSPVcells,whetherornotpartiallyorfully

6219U.S.C.2252(c)(6)(A)(i).63UruguayRoundAgreementsActStatementofAdministrativeAction(URAASAA),H.Doc.

103316,vol.I(103rdCong.2ndSess.)at961.64Steel,Inv.No.201TA075,USITCPub.3479at30(quotingStainlessSteelandAlloyToolSteel,

201TA048,USITCPub.1377at12(May1983)).65Thestatutorydefinitionsofdomesticindustryaredifferent.Compare19U.S.C.

2252(c)(6)(A)(1)(definingthetermforpurposesofglobalsafeguardinvestigationsasdomesticproducersasawholeofthelikeordirectlycompetitivearticle)with19U.S.C.1677(4)(A),1677(10)(definingdomesticindustryinantidumpingandcountervailingdutyinvestigationsastheproducersasawholeofadomesticlikeproduct,andinturnisdefiningdomesticlikeproductasaproductwhichislike,orintheabsenceoflike,mostsimilarincharacteristicsanduseswiththeimportssubjecttoinvestigation).

66Steel,Inv.No.201TA075,USITCPub.3479at30(quotingStainlessSteelandAlloyToolSteel,201TA048,USITCPub.1377at16n.21(May1983)).

67H.R.Rep.9371at46(1973);seealsoH.R.Rep.100576at66162(1988);S.Rep.10071at4647(1987);H.R.Rep.10040at8696(1987).

18

assembledintootherproducts.***oftherespondingfirmswereintegratedU.S.producersofCSPVcellsandCSPVmodulesduringthePOI,andanumberoffirmswereindependentmoduleproducerswithoutintegratedcellproducingoperations.68Manyofthesefirms,bothintegratedproducersandindependentmoduleproducers,importedCSPVcellsorlaminatesthattheythenconsumedintheirmoduleassemblyoperations,andsomealsoimportedfinishedCSPVmodules.69

Petitionersadvocateincludingindependentmoduleproducersinthedomesticindustry,evenwhenthosefirmsrelyentirelyonimportedCSPVcellsfortheirU.S.moduleoperations,andrespondentsdonotdisagree.70HadwedeterminednottoincludeinthedomesticindustryindependentmoduleproducersthatreliedononlyimportedandnotU.S.manufacturedCSPVcells,theremainingproducerswouldstillaccountforamajorproportionoftotaldomesticproductionofCSPVproducts.71Nevertheless,exclusionofsuchindependentmoduleproducerswouldarguablyruncountertothelegislativeintentofconsideringseriousinjurytotheproductiveresourcesinwhichthearticleisproducedintheUnitedStates.72Suchanapproachalsowouldignorethefactthat***ofthe***respondingintegratedU.S.producersreliedonamixtureofimportedandU.S.manufacturedcellsfortheirownmoduleoperations,73andtherewasinadequateU.S.CSPVcellcapacityorproductiontomeetU.S.CSPVmodulecapacityorproductionduringthePOI.74Consequently,forouranalysisinthisinvestigation,wedefinethedomesticindustryasallU.S.producersofCSPVcells(whetherornotpartiallyorfullyassembledintootherproducts),includingintegratedproducersofCSPVcellsandmodulesandindependentmoduleproducers.75

68CRatIII22,III23;PRatIII11;CR/PRatTableIII5,TableIII7,TableIII8.Asindicatedearlier,mostoftheCSPVproductsmanufacturedintheUnitedStatesconsistedofCSPVcellsorCSPVmodules.Modulesaccountedfor***to***percentofU.S.producersU.S.shipmentsduringthePOI,comparedto***to***percentforcells,***to***percentforlaminates(mostlyin2012),and***and***percentforintegratedbuildingmaterialsandoffgridportableconsumergoods,respectively.CR/PRatTableIII11.

69CR/PRatTableII7,TableIII8;CRatII20;PRatII17.AmoduleisajoinedgroupofCSPVcells,regardlessofthenumberofcellsortheshapeofthejoinedgroup,thatarecapableofgeneratingelectricity.ThetermmoduleisfrequentlyusedinterchangeablywiththetermpanelandfortheremainderofouranalysisalsoincludesaCSPVcellthathasundergoneanyprocessing,assembly,orinterconnection(including,butnotlimitedto,assemblyintoalaminate).

70InjuryHearingTr.at315(Nicely)(itdoesntmatteronewayortheother).71CompareCR/PRatTableII7withCR/PRatTableIII4andTableIII7.72H.R.Rep.9371at46(1973);seealsoH.R.Rep.100576at66162(1988);S.Rep.10071at

4647(1987);H.R.Rep.10040at8696(1987).73CR/PRatTableII7(importsbydomesticproducers),TableIII8(domesticproducersmodule

assemblybysourceofCSPVcell).74CompareCR/PRatTableIII4(domesticindustrysproduction,capacity,andcapacity

utilizationforCSPVcells)withCR/PRatTableC1(b)(apparentU.S.consumptionofCSPVproductsduringthePOI).

75Asaresult,werelyprimarilyondatainCR/PRatTableC1(b)thatincludetheproductiveresourcesofallU.S.producersforpurposesofcapacity,capacityutilization,production,and(Continued)

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III. IncreasedImports

Afterdefiningthedomesticindustrythatmanufacturesaproductthatislikeordirectlycompetitivewiththeimportedarticle,theCommissionnextexamineswhetherimportsareenteringinincreasedquantities.Undersection202oftheTradeAct,importshaveincreasedwhentheincreaseiseitheractualorrelativetodomesticproduction.76Consistentwithitsusualpastpractice,77theCommissioninthissafeguardinvestigationconsideredimporttrendsoverthemostrecentfiveyearperiodastheframeworkforitsanalysis,butitmayconsiderlongerorshorterperiodsandmayfocusonthemostrecentperiod,asitdeemsappropriate.78

Asathresholdmatter,thisinvestigationincludesseveralpossibledatasourcesformeasuringimportsandanyincreaseinimports,including(1)officialimportstatisticsfromtheCommissionsDataWeb;79(2)questionnaireresponsesfromimportersthatreportedU.S.importsonthebasisofthemanufacturinglocationoftheCSPVcell;and(3)alternatequestionnairedataonU.S.importsfromCanadaandMexicothatarebasedonthemodule

(Continued)employmentindicatorsandCR/PRatTableIII2andTableIII3forrelatedclosures/openings.ThedomesticindustrysU.S.shipments,byquantity,anditsU.S.shipmentsasashareofapparentU.S.consumptioninclude(1)modulesthatcontainU.S.manufacturedCSPVcells,(2)U.S.manufacturedCSPVcellsthatarenototherwisereportedbymoduleassemblers,and(3)reimportsofU.S.originCSPVcells;thisquantitymeasureexcludesanyCSPVmodulesmanufacturedintheUnitedStatesfromimportedCSPVcells,asthosearereportedforpurposesofapparentU.S.consumptionasimports.ThedomesticindustrysU.S.shipments,byvalue,anditsU.S.shipmentsasashareofapparentU.S.consumption,byvalue,includetheincrementalvalueaddedintheUnitedStatestoassembleimportedCSPVcellsintomodules.CRatIII33;PRatIII17.TheCommissiondidnotaskquestionnairerespondentstoallocatefinancialdataontheirmoduleoperationsbasedontheshareofproductionassembledfromU.S.manufacturedcells,becauseabreakoutoffinancialinformationatthislevelofdetailisnotconsistentwiththemannerinwhichmostU.S.producerstracktheirfinancialresultsandrequestingthedataonthisbasiswouldyieldunreliableinformation.Moreover,theCommissionsquestionnairesoughtsupplementalinformationonthefirmsreportedrawmaterialcoststhatwouldreflectwhethertheircellswereinternallyproducedorpurchasedfromrelatedorunrelatedfirms.ThisallowedtheCommissiontoevaluatethefinancialdatausingaconsistentallocationmethodologyforallU.S.producers.CRatIII50;PRatIII26.

7619U.S.C.2252(b)(1)(A)(requiringtheCommissiontodeterminewhetheranarticleisbeingimportedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjury,orthethreatthereof);seealso19U.S.C.2252(c)(1)(C)(inturnrequiringwithrespecttosubstantialcause,thattheCommissiontakeintoaccountanincreaseinimports(eitheractualorrelativetodomesticproduction)).

77See,e.g.,Steel,Inv.No.201TA73,USITCPub.3479at3233(Dec.2001);ExtrudedRubberThread,Inv.No.201TA72,USITCPub.3375atI8(Dec.2000).

78ThePOIintheinstantglobalsafeguardinvestigation(January2012toDecember2016)overlapswithmostofthetimeperiodintheCSPVIIantidumpingandcountervailingdutyinvestigations(January2011toJune2014)andsixmonthsofthetimeperiodintheCSPVIantidumpingandcountervailingdutyinvestigations(January2009toJune2012).

79See,e.g.,CR/PRatTableC7.

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assemblylocationandadjustedU.S.importerquestionnairedataonimportsfromallothersourcesthatarebasedonthemanufacturinglocationoftheCSPVcell.Inthisinvestigation,wereliedprimarilyonthethirdsource.

OfficialimportstatisticsinCR/PRatTableC7maybeoverstatedtotheextentthattheyincludeproductsthatareoutsidethescopeofthisinvestigation,suchasthinfilm,andtheymaybeoverorunderstatedtotheextentthattheydonotnecessarilydefinecountryoforiginconsistentlywiththeargumentspresentedinthiscase.80TableC7doesnotpresentofficialimportstatisticsbyquantityasthesedataarecollectedonalessreliablebasisofunits(atermthatmayencompass,e.g.,asinglecellofagivenwattage,asinglecellofadifferentwattage,a60cellmodule,anda72cellmodule).Forthisreason,theCommissionsquestionnairesinsteadsoughtconsistentquantitydataintermsofkilowatts(kW).81

TheCommissionsimporterquestionnairesinthisinvestigationprimarilycollectedU.S.importdatabasedonthelocationwheretheCSPVcellwasmanufactured,eveniftheCSPVcellwasassembledintoaCSPVmoduleinadifferentcountry.82TheCommissionalsocollectedseparatedataonU.S.importsofCSPVmodulesthatwereassembledinCanadaandMexico,regardlessofwheretheCSPVcellsweremanufactured,consistentwithargumentspresentedbycertainrespondents.83Undertheirproposal,thecountryoforiginforU.S.importsofCSPVmodulesassembledinNAFTAcountrieswouldbethelocationwheretheCSPVmodulewasassembled,regardlessofwheretheCSPVcellwasmanufactured,andinformationonallotherU.S.importswouldbesourcedfromimporterquestionnairedatabasedontheCSPVcellmanufacturinglocation,exceptthatanyCSPVcellsusedtoassembleU.S.importsofmodulesfromNAFTAcountrieswouldbesubtractedfromtheU.S.importdataforthecountrieswheretheCSPVcellsweremanufacturedtoavoiddoublecounting.84

80CRatII1atn.1;PRatII1atn.1.OfficialimportstatisticspresentedinCR/PRatTableC7onimportsunderHTSUSstatisticalreportingnumbers8541.40.6020(solarcellsassembledintomodulesormadeupintopanels)and8541.40.6030(solarcells,other)alsomaybeunderstated,ifimportsenterunderadifferentprovisionaspartsorsubassembliesofgoodsprovidedforinsubheadings8501.31.80,8501.61.00and8507.20.80.SeeCRatI52;PRatI38.

81TheelectricitypoweroutputofCSPVcellsandmodulesismeasuredintermsofwattage.AkWequals1,000watts,whereasonemegawatt(MW)equals1,000kW,andagigawatt(GW)equals1,000MW.CRatI15,I21;PRatI11,I14.

82See,e.g.,CR/PRatTableII1,TableIV1.83See,e.g.,GovernmentofCanadasPrehearingInjuryBriefat713;GovernmentofCanadas

PosthearingInjuryBriefat78;CanadianRespondentsPrehearingInjuryBriefat5,2735;CanadianRespondentsPosthearingInjuryBriefat1215;SunpowersPosthearingInjuryBriefat38,Exhibits14;SunPowersPrehearingInjuryBriefat1013,Exhibit3;GovernmentofMexicosPrehearingInjuryBriefat45(urgingtheCommissiontoconsidertheargumentspresentedbyexportersfromMexico);InjuryHearingTr.at6667.Inaddition,theCommissioncollectedseparatedataonU.S.importsofCSPVmodulesthatwereassembledinChina,regardlessofwheretheCSPVcellsweremanufactured.CR/PRatTableII3.

84AsCanadianrespondentsexplain,aheadquartersrulingbyU.S.CustomsandBorderProtectionconfirmsthat,underNAFTArulesoforiginandmarkingrules,U.S.importsoffinished(Continued)

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AlthoughpetitionersdidnotovertlyadoptrespondentsapproachtocountryoforiginforU.S.importsofmodulesassembledinNAFTAcountries,theydidnotidentifyanyflawsinthelegalreasoningunderpinningCanadianrespondentsarguments.85WefindtheCanadianrespondentsargumentspersuasive,andaccordinglytheimportdataweprimarilyreliedonforouranalysisusesthecountryoforiginmethodologythattheyproposed(i.e.,theNAFTArulesoforiginforimportsfromCanadaandMexicoandforimportsfromallothercountries,thecountrywherethecellwasmanufactured,asadjustedtoreflectcellsassembledintomodulesinaNAFTAcountry).86

Basedonthesedata,wefindthatthestatutorycriterionofincreasedimportsismet.ImportsofCSPVproductsincreasedby492.4percentbetween2012and2016.87Theyincreasedeachyear,from2.1millionkWin2012to3.1millionkWin2013,4.6millionkWin2014,8.4millionkWin2015,and12.8millionkWin2016.88Importsasaratiotodomesticproductionalsoincreasedoverallandineachyear,from733.9percentin2012to948.4percentin2013,1,141.0percentin2014,1,593.5percentin2015,and2,276.2percentin2016.89

(Continued)CSPVmodulesassembledinaNAFTAcountry,evenfromCSPVcellsoriginatinginnonNAFTAcountries,qualifyasproductsfromtheNAFTAcountry,wherethegoodsoriginateunderGeneralNote12(b)andareaccompaniedbyasignedandcompletedNAFTAcertificateoforigin,becausethefinalassemblyoperationsintheNAFTAcountryinvolvemorethanminorprocessingandrequiresubstantialinvestmentandvalueadded.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,CanadianrespondentscontendthattheprovisionofNAFTAArticle201defininggoodsofaPartyasincludingoriginatinggoodsofthatPartyappliestosafeguardmeasuresbecauseNAFTAArticle309.2createsanexceptionforantidumpingdutyandcountervailingdutymeasures(relatedtoenforcementofantidumpingandcountervailingdutyordersandundertakings),butnosuchexceptionexistsforsafeguardmeasures.CanadianRespondentsPrehearingInjuryBriefat2735,ExhibitI;GovernmentofCanadasPrehearingInjuryBriefat12.

85See,e.g.,SolarWorldsPrehearingInjuryBriefat5758(theCommissionproperlyincludedalternativedata,basedonmoduleorigin);Petitionat19n.61(Apr.26,2017).

86See,e.g.,CR/PRatTableII2,TableIV3,TableC1b(implementingthemethodologyandreducingU.S.importsfromnonNAFTAsourcestoreflectreportedinformationindicatingthattheCSPVcellswereassembledintomodulesinCanadaorMexico).Becausethismethodologychangesonlythecountryoforiginofimports,thereislittledifferenceinthetotalvolumeofimportsfromallcountriesregardlessofthemethodologyused.CompareCR/PRTableC1aandTableC1b;CRatTableII2atNote,TableIV3atNote;CRatIV6;PRatIV4.

87CR/PRatTableII2,TableIV3,TableC1b.88CR/PRatTableII2,TableIV3,TableC1b.Thevalueofimportsalsoincreasedoverthis

periodandfromoneyeartothenext.Importsincreasedfrom$1.9billionin2012to$2.2billionin2013,$3.0billionin2014,$5.0billionin2015,and$7.1billionin2016.CR/PRatTableII2,TableIV3,TableC1b.

89CR/PRatTableII2,TableIV3,TableC1b.

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Consequently,wefindthatimportsincreasedbothactuallyandrelativetodomesticproduction.

IV. SubstantialCauseofSeriousInjuryorThreatofSeriousInjury

A. LegalStandardsandStatutoryRequirements

Thesecondofthethreestatutorycriteriaconcernswhetherthedomesticindustryisseriouslyinjuredorthreatenedwithseriousinjury.Section202(c)(6)(C)oftheTradeActdefinesthetermseriousinjuryasasignificantoverallimpairmentinthepositionofadomesticindustry,andsection202(c)(6)(D)definesthetermthreatofseriousinjuryasseriousinjurythatisclearlyimminent.90

Indeterminingwhetherseriousinjuryorthreatofseriousinjuryexists,theCommissionconsidersalleconomicfactorswhichitconsidersrelevant,including(butnotlimitedto)thefollowingenumeratedfactors

(A)withrespecttoseriousinjury(i)thesignificantidlingofproductivefacilitiesinthedomesticindustry,91(ii)theinabilityofasignificantnumberoffirmstocarryoutdomesticproductionoperationsatareasonablelevelofprofit,and(iii)significantunemploymentorunderemploymentwithinthedomesticindustry;92(B)withrespecttothreatofseriousinjury(i)adeclineinsalesormarketshare,ahigherandgrowinginventory(whethermaintainedbydomesticproducers,importers,wholesalers,orretailers),andadownwardtrendinproduction,profits,wages,productivity,oremployment(orincreasingunderemployment)inthedomesticindustry,(ii)theextenttowhichfirmsinthedomesticindustryareunabletogenerateadequatecapitaltofinancethemodernizationoftheirdomesticplantsandequipment,orareunabletomaintainexistinglevelsofexpendituresforresearchanddevelopment,and(iii)theextenttowhichtheUnitedStatesmarketisthefocalpointforthediversionofexportsofthearticleconcernedbyreasonofrestraintsonexportsofsucharticleto,oronimportsofsucharticleinto,thirdcountrymarkets.93

9019U.S.C.2252(c)(6)(C),2252(c)(6)(D).91Thestatutefurtherprovidesthatthetermsignificantidlingofproductivefacilitiesincludes

theclosingofplantsortheunderutilizationofproductioncapacity.19U.S.C.2252(c)(3).9219U.S.C.2252(c)(1)(A).9319U.S.C.2252(c)(1)(B).

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Thepresenceorabsenceofanyofthesefactorsisnotnecessarilydispositiveofwhetherincreasedimportsareasubstantialcauseofseriousinjury,orthreatofseriousinjury,totheindustry.94Aspartofitsanalysis,theCommissionmustconsidertheconditionofthedomesticindustryoverthecourseoftherelevantbusinesscycle.95

Thethirdstatutorycriterionalsorequiresafindingthatthearticleisbeingimportedinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjuryorthreatofseriousinjury.Section202(b)(1)(B)definessubstantialcauseasacausewhichisimportantandnotlessthananyothercause.96Thus,theincreasedimportsmustbebothanimportantcauseoftheseriousinjuryorthreatandacausethatisequaltoorgreaterthananyothercause.

Indeterminingwhetherincreasedimportsareasubstantialcauseofseriousinjuryorthreatofseriousinjury,thestatutedirectstheCommissiontotakeintoaccountalleconomicfactorsthatitfindsrelevant,includingbutnotlimitedtoanincreaseinimports(eitheractualorrelativetodomesticproduction)andadeclineintheproportionofthedomesticmarketsuppliedbydomesticproducers.97ThestatutedirectstheCommissiontoconsidertheconditionofthedomesticindustryoverthecourseoftherelevantbusinesscycle,butitprovidesthattheCommissionmaynotaggregatethecausesofdecliningdemandassociatedwitharecessionoreconomicdownturnintheUnitedStateseconomyintoasinglecauseofseriousinjuryorthreatofinjury.98Thelegislativehistorystatesthattheprovisionismeanttoclarifythatimportreliefshouldbeavailableduringarecessionoreconomicdownturn.99

ThestatutealsodirectstheCommissiontoexaminefactorsotherthanimportsthatmaybeacauseofseriousinjuryorthreattothedomesticindustryandincludetheresultsofitsexaminationinitsreport.100Thus,theCommissionisrequiredto(1)examinefactorsotherthanincreasedimportsand(2)makefindingswithrespecttotheseotherfactors.Thelegislativehistorystatesthatthepurposeofthisprovisionistoassurethatallfactorsinjuringthedomesticindustryareidentified.101

9419U.S.C.2252(c)(3).9519U.S.C.2252(c)(2)(A).9619U.S.C.2252(b)(1)(B).9719U.S.C.2252(c)(1)(C).9819U.S.C.2252(c)(2)(A).99SenateFinanceCommittee,OmnibusTradeandCompetitivenessActof1987:ReportonS.

490,Rept.10071,100thCong.,1stSess.at50(1987).10019U.S.C.2252(c)(2)(B).101SenateFinanceCommittee,OmnibusTradeandCompetitivenessActof1987:ReportonS.

490,Rept.10071,100thCong.,1stSess.at50(1987).ThelegislativehistoryoftheTradeActincludesexamplesofothercausessuchaschangesintechnologyorconsumertastes,domesticcompetitionfromsubstituteproducts,plantobsolescence,orpoormanagement,which,iffoundtobemoreimportantcausesofinjurythanincreasedimports,wouldrequireanegativedetermination.SenateFinanceCommittee,TradeReformActof1974ReportonH.R.10710,S.Rept.1298,93rdCong.,2ndSess.at121(1974).

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B. ExistingAntidumpingandCountervailingDutyOrders

TheUnitedStatesimposedantidumpingandcountervailingdutyordersonimportsfromChinainDecember2012andFebruary2015andanantidumpingdutyorderonimportsfromTaiwaninFebruary2015.102SeveralpastCommissionglobalsafeguardinvestigationshaveincludedarticlescoveredbyoneormoreantidumpingorcountervailingdutyordersinthescopeoftheinvestigation,andtheinclusionofsucharticlesinthescopeofexistingorders,alone,didnotdictateanyparticularoutcomefortheCommissionsseriousinjuryanalysis.103

C. ConditionsofCompetitionandtheBusinessCycle

ThefollowingconditionsofcompetitioninformouranalysisofwhetherCSPVproductsarebeingimportedintotheUnitedStatesinsuchincreasedquantitiesastobeasubstantialcauseofseriousinjurytothedomesticindustryproducinganarticlelikeordirectlycompetitivewiththeimportedarticle.104

102OnOctober19,2011,SolarWorldfiledantidumpingandcountervailingdutypetitionsregardingimportsofCSPVcellsandmodulesfromChina,andaftertheU.S.DepartmentofCommerceandtheCommissioneachreachedaffirmativedeterminations,theUnitedStatesimposedordersonthoseimportseffectiveDecember7,2012.CSPVI,USITCPub.4360;77Fed.Reg.73017(Dec.7,2012);77Fed.Reg.73018(Dec.7,2012).OnDecember31,2013,SolarWorldfiledcountervailingand/orantidumpingdutypetitionsregardingimportsofcertaincrystallinesiliconphotovoltaicproductsfromChinaandTaiwan,andafterbothagenciesreachedaffirmativedeterminations,theUnitedStatesimposedordersonthoseimportseffectiveFebruary18,2015.CSPVII,USITCPub.4519;80Fed.Reg.8597(Feb.18,2015);80Fed.Reg.8596(Feb.18,2015);80Fed.Reg.8592(Feb.18,2015).TheseorderscollectivelyincludeimportsofCSPVcellsandmodulesfromChina,regardlessofwhetherthecellormoduleoriginatedinChina(orboth).Inaddition,theantidumpingdutyorderonTaiwancoversimportsofcellsfromTaiwanaswellasimportsofmodulesfromTaiwanoranynonChinesecountrythatareassembledfromcellsoriginatinginTaiwan.

103Forexample,theCommissionsinvestigationinSteelincludedvarioustypesofcarbonflatrolledsteelsubjecttoexistingorders.TheCommissiontooktheordersintoaccountinitsinjuryanalysisandinfashioningitsremedyproposal,includingthefactthatsomeofthesemeasuresalreadyprovidedsomedegreeofprotectiontothedomesticindustry.Steel,Inv.No.201TA73,USITCPub.3479at364n.59(Dec.2001);CarbonandCertainSteelAlloyProducts,Inv.No.201TA51,USITCPub.1553ata24(Jul.1984)(notingthatantidumpingandcountervailingdutyorderswerealreadyineffectonseveraloftheproductssubjecttotheinvestigationandthatothercoveredproductswerethesubjectofsuspensionagreements);seealsoNucorCorp.v.UnitedStates,318F.Supp.2d1207,1236(Ct.IntlTrade2004),affd,414F.3d1331(Fed.Cir.2005)andWheatlandTubeCo.v.UnitedStates,495F.3d1355,136367(Fed.Cir.2007)(recognizinginthecontextofantidumpingandcountervailingdutyinvestigationsthatsafeguardmeasuresmaybeimposedonimportsthataresubjecttoantidumpingorcountervailingdutyorders).

104WealsotaketheseconditionsofcompetitionintoconsiderationinouranalysisofimportsfromindividualcountriesinsectionVbelow.

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1. DemandConditions

CSPVproductsareusedinsolarpowersystemsthatgenerateelectricityfromsunlight.105CSPVproductsaccountforameaningfulshareofthecostoftheenduseproductsinwhichtheyareused.106DemandforCSPVproductsisderivedfromthedemandforsolarelectricity,whichisinfluencedbyfactorssuchascostcompetitivenesswithtraditionalenergysources,environmentalconcerns,adesirefornationalenergyindependence,totalenergyconsumption,andtheavailabilityofFederal,state,andlocalincentives.107

a. ConventionalandRenewableSourcesofEnergy

Electricityprovidersusingrenewableenergysources108seektoachievegridparity(thepointatwhichthelevelizedcostofelectricity(LCOE)generatedfromrenewablesources

105CRatI15;PRatI11.106CRatV12toV16;PRatV8toV10;CR/PRatTableV2;CR/PRatFiguresV4toV6.In

additiontothemodulecost,thepriceofaninstalledphotovoltaicsystemincludesnonmodulebalanceofsystemcostssuchasinverters,mountinghardware,labor,siteassessmentanddesign,permitting,financing,systeminstallation,overhead,andprofitmargin.CRatI33,V13;PRatI24toI25,V8.Forongridinstallations,thecostshareofCSPVcellsgenerallyincreasesastheinstallationprojectssizeincreases,withquestionnairerespondentsreportingthatCSPVcellsaccountedfor19to26percentofthecostforresidentialsystems,18to27percentforcommercialinstallations,and29to31percentforutilitysystems.CRatV12toV13;PRatV8toV9;CR/PRatTableV2.AccordingtoSEIA,thecostshareofaphotovoltaicmodule(includesthinfilm)rangedfrom15to19percentforresidentialsystems,2632percentfornonresidentialsystems,and3649percentforutilitysystems.CRatV15atn.30;PRatV9atn.30;CR/PRatFigureV6.Moreover,thesecostsharesarefarreducedfromearlierinthePOI,whenthepriceofCSPVmoduleswashigher.

107CRatV10;PRatV6.ThemajorityofU.S.producers(8of10),importers(30of48),andpurchasers(55of101)reportedthattheU.S.marketforCSPVproductswassubjecttobusinesscycles,suchasseasonallyhigherdemandinwarmermonthsandatcalendaryearendtofinishprojectstoqualifyforvariousincentiveprogramsfortaxaccountingpurposes.MostU.S.producers(6of10)andnearlyhalfofrespondingimporters(23of48)andpurchasers(23of48)reporteddistinctconditionsofcompetitionfortheU.S.CSPVmarket,withmostidentifyinggovernmentincentiveprogramsandchangesinglobalsupplyanddemandconditions.ThemajorityofU.S.producers(6of9),importers(22of38),andpurchasers(56of89)reportedthattherehadbeenchangestothebusinesscycleandconditionsintheU.S.marketsince2012,andtheyidentifiedincreasedcompetition,marketsaturation,increasedefficiencyofCSPVcells,introductionandextensionofvarioussolarincentiveprograms(suchastheInvestmentTaxCredit),lowerinterestrates,anddecliningglobalpricesofCSPVcellsandsystems.CRatV16toV17;PRatV11.

108Renewablesourcesofsolarenergyincludephotovoltaicproducts(CSPVproductsandthinfilm)aswellasnonphotovoltaicproducts(solarwaterheatandconcentratedsolarpower(CSP)).ThinfilmusesaseveralmicronthicklayerofaphotosensitivesemiconductormaterialsuchasaSi,CdTe,CIS,orCIGStoconvertsunlighttoelectricity.CRatI15atn.53;PRatI11atn.53.Solarwaterheatusessunlighttoheatwater,andCSPusesreflectedsunlighttogeneratesteamoravaporthatturnsaturbinetogenerateelectricity.CRatI17atn.57;PRatI12n.57.Otherrenewableenergysourcesinclude(Continued)

26

equalsthecostfromthegridofelectricitygeneratedbyconventionalsources).109TheLCOEvariesbyregion,timeoftheday,andavailabilityofotherelectricitysources,110andeventheLCOEforagivenenergysourcecanvarywidely.111DuringperiodsofnonpeakelectricitydemandintheUnitedStates,onlylowestcostbaseloadgenerators(traditionallycoalandnuclearplants)wouldbeabletosellelectricitytothegrid,whereasduringperiodsofpeakelectricitydemand,evengeneratorswithsomewhathighercostsmaybeabletosellelectricityintothetransmissionordistributiongrid.112Forpeakperiods,naturalgasgeneratedelectricitygenerallysetstheLCOEthatCSPVandotherrenewableenergysystemsseektomeet,especiallyforutilitysales.113

b. ApparentU.S.consumptiontrends

ThevastmajorityoffirmsreportedthatU.S.demandforCSPVproductshasincreasedsince2012.114Accordingtomostofthesefirms,theincreaseddemandresultedfromareductioninCSPVsystempricesandinstallationcostsaswellastheexistenceofFederal,state,andlocalincentiveprograms.115Theyalsotiedtheincreaseddemandtothepublicsincreasedknowledgeofandgeneralinterestinrenewableenergy,increasedtechnologyimprovements,includingmoduleefficiency,andincreasedmilitaryuseofsolarenergy.116Theincreaseindemanddescribedbyrespondingfirmsisreflectedinthedata,whichshowthatapparentU.S.

(Continued)wind,geothermal,andbiomass.CR/PRatFigureV2.Conventionalsourcesofelectricityincludenaturalgas,coal,andoilaswellasnuclearandhydroelectric.CR/PRatFigureV2.

109TheLCOErepresentstheperkWhourcostofbuildingandoperatingageneratingplantoveranassumedfinanciallife.KeyinputstocalculatetheLCOEincludecapitalcosts(allhardware,suchasCSPVproducts),fuelcosts,fixedandvariableoperationsandmaintenancecosts,financingcosts,andanassumedutilizationrateforeachplanttype.TheavailabilityofFederal,state,andlocalincentivescanalsoimpactthecalculationoftheLCOEforvariousenergysources.Plantownersorinvestorsthatfinanceplantsmayalsovalueportfoliodiversificationduetotheuncertaintyoffuturefuelpricesandfuturepolicies.CRatV58toV59&n.74;PRatV37toV38&n.74.

110CRatV59;PRatV37toV38.111CRatV59toV61;PRatV38toV40;seealsoCRatV13toV14;PRatV8toV9

(indicatingthatinstalledphotovoltaicsystempricesvarygreatlyfromstatetostateandprojecttoproject,withaconsiderablespreadamongthepricesineachmarketsegment);NationalRenewableEnergyLab(NREL),U.S.SolarPhotovoltaicSystemCostBenchmark:Q12017atAppendixB,EDISDoc.623277,fileID1226486at654,72426;EDISDoc.622844.

112CRatV10toV11,V59;PRatV6,V38;CR/PRatFigureV2,FigureV14;CSPVI,USITCPub.4360at2122;CSPVII,USITCPub.4519at32.

113CRatV59;PRatV37toV38;CR/PRatFigureV14(indicatingthatin2016,combinedcyclenaturalgashadthelowestLCOEin2016,followedbyonshorewindandcoal).TheLCOEofcoalgeneratedelectricityhasbeenincreasing.CRatV59atn.78;PRatV38atn.78.

114CR/PRatTableV3.115CRatV17;PRatV11.116CRatV17;PRatV11.

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consumptiongrewsubstantiallyduringthePOI,increasingby***percentbetween2012and2016andbyatleast***percentineachoftheinterveningyears.117

c. MarketSegments

ThevastmajorityofCSPVmodulessoldintheU.S.marketareconnectedtotheelectricitygrid,118althoughsomeCSPVproductsaresoldforoffgridapplications.119Therearethreegridconnectedmarketsegmentsresidential,nonresidential/commercial,andutilityalthoughthesegmentsoverlapsomewhat.120Installationsizesvarybysegment,butthesizeofinstallationsgenerallyhasgrownovertimeineachsegmentduetoacombinationofgreatercellefficiency(morekW/cell)and/orlargerinstallations(moremodules/installation).121

AnnualU.S.installationsofongridphotovoltaicsystemsincreasedfrom3,373MWin2012to14,762MWin2016,anincreaseof338percent.122AllthreeongridsegmentsexperiencedconsiderablegrowthinboththenumberofinstallationsandthetotalwattageofinstallationprojectsduringthePOI.123ByDecember2016,morethan19,770MWofutility

117Accordingtoquestionnairedata,apparentU.S.consumptionincreasedfrom***kWin2012to***kWin2013,***kWin2014,***kWin2015,and***kWin2016.Byvalue,apparentU.S.consumptionincreasedfrom$***in2012to$***in2013,$***in2014,$***in2015,and$***in2016.CR/PRatTableIV3.IndustryreportsindicatethatU.S.installationsofongridphotovoltaicsystems(includingthinfilm)increasedfrom3,373MWin2012to14,762MWin2016,orby338percent.CRatV1;PRatV1.

118CRatV1;PRatV1;InjuryHearingTr.at18586(Card,Messer).119CSPVmodulesthataretypicallyusedinongridapplicationsmaybeusedinoffgrid

applications,butsomeoffgridapplicationsmayrequiredifferentmoduleswithspecificpower,portability,orpoweroutputs;offgridsystemsoftenincludeadditionalbalanceofsystemcomponentssuchasabatteryandchargecontroller,althoughtheydonotnecessarilyrequireaninverter.Offgridapplicationsincludearangeofuses,fromhomesnotconnectedtothegridtopowergenerationinremotelocations,mobilepowersolutions,telecommunicationspowerandlightingsystems,andportableconsumergoods(suchassystemstorechargeconsumerelectronicsliketabletsandphones).CRatI22toI23,I36toI37;PRatI17,I28.Theoffgridmarketisdiverse,withsomeCSPVoffgridproducts,suchassolarchargersandsolargenerators,solddirectlytoconsumersorthroughretailchannelsandotherproducts,suchassolarstreetlightingandoffgridpowersystems,soldeitherdirectlyorthroughentitiessuchasinstallersandcontractors,touserssuchasindustrial,commercial,andgovernmententities.CRatI42;PRatI31.

120Forexample,manynonresidentialinstallersalsoinstallresidentialCSPVsystems,andwhatsomeconsiderasalargecommercialinstallationmightqualifyasautilityinstallationtoothers.See,e.g.,CRatI34,I39;PRatI26,I29.

121CRatI33toI35,V2atn.7,V3atn.10;PRatI24toI27,V1atn.7,V2atn.10.122CRatV1;PRatV1.123Residentialinstallationsincreasedby423percentbetween2012and2016,andutility

installationsincreasedby488percent.CRatV1toV2;PRatV1toV2;CR/PRatFigureV1.

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photovoltaicgeneratingcapacitywasinoperationacrosstheUnitedStates,representing60percentoftotalU.S.solarphotovoltaicinstallations(includingthinfilm).124

Since2009thefirstyearoftheperiodexaminedintheCSPVIantidumpingandcountervailingdutyinvestigationstherehasbeenashiftinthedistributionofsalesamongthethreemarketsegments.In2009,thecommercialsegmentaccountedforthelargestshareofthemarket,followedbytheresidentialandutilitiessegments,125whereasthroughoutthe2012to2016POIintheinstantsafeguardinvestigation,utilitieswerethelargestsegmentoftheU.S.market,126followedbytheresidentialandcommercialsegments.127DuringthePOI,thedomesticindustryandimporterseachsoldCSPVproductsintheU.S.markettodistributors,128residentialandcommercialinstallers,andutilitycustomers.129Thevastmajorityofthedomesticindustrysshipmentsservedresidentialandcommercialinstallersin2016,whereasamajorityofimportswereshippedtotheutilitysegment.130

2. SupplyConditions

DuringthePOI,theU.S.marketwassuppliedprimarilybyimportsandtoacontinuouslylesserdegreebythedomesticindustry.131

Domesticindustry:Fourfirms(SolarWorld,Suniva,MissionSolar,andTesla)submitteddataontheirU.S.CSPVcellproductionoperations.132InadditiontoSunivaandMissionSolar,

124CRatV3;PRatV2toV3.125CSPVI,USITCPub.4360at29n.258,FigureII1(identifyingshipmentstothecommercial

segmentof241,520MWin2009comparedto195,391MWfortheresidentialsegment,and30,407MWfortheutilitysegment).

126In2016,10.6GWofphotovoltaicproductswasinstalledintheutilitysegment(includingthinfilm),comparedto2.6GWintheresidentialsegment,and1.6GWinthecommercialsegment.CRatI39;PRatI29;CR/PRatFigureV1.

127CR/PRatFigureV1.128DistributorstypicallysellCSPVproductsintotheresidentialandcommercialmarket,including

toinstallers,althoughSunivareportedthatsomeofitssalestodistributorsservedtheutilitysegment.CRatI37atnn.99,100;PRatI28atnn.99,100.

129CRatI37toI38;PRatI28;CR/PRatTableI1.DomesticallyproducedCSPVcellsaretypicallyinternallyconsumedtoproducesolarmodulesbyU.S.producers,althoughaminoramountweresoldtofirmsthatfabricatemodulesorpanels.CR/PRatTableI1.

130CR/PRatTableI1.131CR/PRatTableIV3,TableC1b.132SunivaexpandeditsCSPVcellproductionoperationsin2009,2010,andJuly2016,but

suspendeditsCSPVcelloperationsinApril2017aspartofitschapter11bankruptcyfiling.SolarWorldproducedCSPVcellsthroughoutthePOI;it***,expandeditscellcapacityin2014,***.Aspartofaseriesofcostcuttingmeasures,SolarWorld***.MissionSolaropeneditsntypemonocrystallinephotovoltaiccellproductionlinein2014,***,andclosedtheCSPVcellproductionlineinSeptember2016***duetothecostlinessofkeepingupwithtechnologicaladvancementnecessarytocompete.Teslaproduced***ofCSPVcellsin2016thatwassolelyfor***.CRatIII9toIII17;PRatIII5toIII9;InjuryHearingTr.at36,8485,99.

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severalotherfirmsclosedtheirCSPVcelloperationsduringorimmediatelyfollowingthePOI.133The***CSPVcellproducers,SunivaandSolarWorld,togetheraccountedfortheoverwhelmingmajority(***percent)ofU.S.CSPVcellproductionbykWin2016.134

FifteenfirmsreporteddataontheirU.S.CSPVmodulemanufacturingoperations.ThelargestU.S.producersofCSPVmodulesare***,accountingfor***percent,***percent,and***percentofU.S.moduleassemblyduringthePOI,respectively.135AnumberoffirmsclosedtheirU.S.CSPVmoduleoperationsduringthePOI.136

ThedomesticindustrysshareoftheU.S.marketforCSPVproductsfellfromapeakof***percentofthemarketin2012to***percentby2016.137ThedomesticindustryscapacitytoproduceCSPVcellsandCSPVmoduleswassubstantiallylowerthanapparentU.S.consumptionthroughoutthePOI.138

Imports:Importsasawholeaccountedforthevastmajorityofthemarket,andtheirshareofapparentU.S.consumptionincreasedfrom***percentin2012to***percentin2016.139Withtheexceptionof2013,followingthefirstantidumpingandcountervailingdutyinvestigationonCSPVcellsandmodules,importsfromChinahaveconsistentlybeenthelargestoroneofthelargestsourcesofimports.OtherlargesourcesincludedTaiwan(particularlyfrom2012to2014),KoreaandMalaysia(2016),andMexico(eachyear).140

3. Substitutability

ThroughoutthePOI,U.S.producersandimportersmadecommercialshipmentsofawidevarietyofCSPVproducts,predominantlyintheformofmodules.141ImportedandU.S.manufacturedCSPVproductsweresoldinarangeofwattagesandconversionefficiencies,andmodulesweresoldinboth60celland72cellforms.142ImportedandU.S.manufacturedCSPVproductsalsoweresoldtooverlappingmarketsegmentsthroughoverlappingchannelsofdistribution,particularlytoresidentialandcommercialinstallers.143IntheU.S.marketforCSPVproducts,purchasersconsideravarietyoffactorsintheirpurchasingdecisions,butprice

133CR/PRatTableIII2,TableIII3.134CRatIII22;PRatIII11.135CRatIII23;PRatIII11.136CR/PRatTableIII2,TableIII3.137CR/PRatTableIV4.138CompareCR/PRatTableIII4(CSPVcellcapacity)andTableIII7(CSPVmodulecapacity)with

CR/PRatTableIV4(apparentU.S.consumption).139CR/PRatTableIV4.140CR/PRatTableIV4.141CR/PRatTableII5(importedtechnologies),TableIII6(U.S.manufacturedtechnologies),

TableII4(importedforms),TableIII11(U.S.manufacturedforms).142CR/PRatTableV11;CRatI19toI21;PRatI14.143CR/PRatTableI1;CRatI15;PRatI11.

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continuestobeanimportantfactor.144Additionally,mostU.S.producers,importers,andpurchasersreportedthatU.S.producedCSPVproductswereinterchangeablewithimportedCSPVproducts.145Accordingly,wefindthatimportedCSPVproductsarehighlysubstitutableforU.S.manufacturedCSPVproductsandpriceisanimportantconsiderationinpurchasingdecisions.146

4. OtherConditionsofCompetition

RawmaterialsaccountforthelargestcomponentofthetotalcostofgoodssoldforbothCSPVcellsandCSPVmodules.147RawmaterialcostsforCSPVmodules,muchofwhichisthecostoftheCSPVcell,accountedfor84.9percentofU.S.CSPVmoduleproducerstotalcostofgoodssoldin2016,upfrom58.2percentin2012.148RawmaterialcostsforCSPVcellsaccountedfor***percentofU.S.CSPVcellproducerstotalcostofgoodssoldin2016,upfrom***percentin2012.149PolysiliconisakeyrawmaterialusedintheproductionofthewafersthatareusedtomanufactureCSPVcellsandotherhightechproducts.150Historically,

144CR/PRatTableV4(indicatingthatthemostoftencitedtopthreefactorsthatfirmsconsiderintheirpurchasingdecisionsforCSPVproductswereprice(81firms),quality/performance(77firms),andavailability(42firms)).PurchasersidentifiedthefollowingfactorsthattheyconsideredindeterminingthequalityofCSPVproducts:output,efficiency,longevityandlongtermperformancedegradation,outputtolerances,warranty(suppliersabilitytobackthewarranty),historicalfailurerates,appearance(matchingcellcolorsandframestructure),salessupport,bankability,financialstrengthofmanufacturer,thirdpartytesting,andULcertification).CRatV21;PRatV14;CR/PRatTableV4.SevenpurchasersreportedthattheydidnotpurchasedomesticproductbecauseU.S.manufacturersfailedbankabilityrequirements,didnotmeetqualityrequirements,hadlimitedavailability,anddidnotsellstandaloneCSPVproducts.CRatV23;PRatV16.

145CR/PRatTableV8.146CRatV19;PRatV13;CR/PRatTableV4;InjuryHearingTr.at9798(citingSEIAscomment

inaNewYorkTimesarticlethatWearecompetingonpriceandpricealone.Ifyouchangetheunderpinningsofthat,itundermineswhatweredoing.),112;SunivasPosthearingInjuryBriefatAttachmentN(DianeCardwell,SolarTradeCase,withTrumpasArbiterCouldUpendMarket,NewYorkTimes(June30,2017)).

147CRatV27;PRatV18.148CR/PRatV27toV28;PRatV18toV19.149CR/PRatV27toV28;PRatV18toV19.150CRatV27;PRatV18.

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polysiliconcostshavebeenvolatile.151DuringthePOI,thepriceofpolysiliconingotsandwafersfluctuatedbutdeclinedoverallby52.6percentforingotsandby54.5percentforwafers.152

DuringthePOI,domesticproducersandimportersreportedsellingCSPVproductsusingprimarilytransactionbytransactionnegotiationsandalsocontracts.153In2016,domesticproducerssoldthemajorityoftheirCSPVproductsthroughshorttermcontractsandtheremainderonaspotbasis,whereasimporterssoldmostoftheirCSPVproductsthroughamixofshortterm,annual,andlongtermcontracts.154

D. TheDomesticIndustryisSeriouslyInjured

1. SignificantIdlingofProductiveFacilities

Inassessingwhetherthedomesticindustryisseriouslyinjured,wefirstexaminedwhethertherehasbeenasignificantidlingofU.S.productivefacilitiesintermsofplantclosuresand/orunderutilizationofproductivecapacitytomanufactureCSPVproducts.ThirtythreeCSPVcellorCSPVmodulefacilitiesoperatedintheUnitedStatesasofJanuary1,2012,butonly13ofthosefacilitiesremainedopenbyDecember31,2016.155Ofthe16additionalfacilitiesthatopenedduringthePOI,fiveclosed.156Twofirmsannouncedplansfornewfacilities,but

151In2003,globalsuppliesofpolysiliconwereinadequatetomeetglobaldemandbythesemiconductorindustryandparticularlytheCSPVindustry,sospotpricesofpolysiliconrosefrom$35/kgin2003toahighof$500/kgin2008(andcontractpricesrosefrom$25/kgto$85/kginthisperiod).By2008,globalsupplyexceededglobaldemand,andpolysiliconspotandcontractpricesthenfellsubstantiallytoanestimated$35/kgby2012.CSPVI,USITCPub.4360at28.

152CR/PRatFigureV7.Themajorityofdomesticproducers(9of11)andimporters(32of44)reportedthatpricesofrawmaterialsforCSPVproductshavedeclinedsince2012.CRatV28;PRatV19.

153CR/PRatTableV9.154CR/PRatTableV10.AllfiverespondingU.S.producersandmostimportersreportedthat

shorttermcontractsdidnotallowforpricerenegotiations,hadfixedpricesandquantities,anddidnothavemeetorreleaseprovisions.TwooffourU.S.producersreportedthattheirannualcontractsdidnotallowforpricerenegotiations,hadfixedpricesandquantities,anddidnothavemeetorreleaseprovisions,whereasthemajorityofU.S.importersreportedthattheirannualcontractsallowedforpricerenegotiations,hadfixedpricesandquantities,anddidnothavemeetorreleaseprovisions.CRatV31;PRatV20toV21.

155CR/PRatTableIII3;SolarWorldsPosthearingInjuryBriefat4,6,Exhibit1,sectionIXat6876,Exhibit351to3524,Exhibit36;InjuryHearingTr.at113(Shea),409410(Werner),333;SolarWorldsPrehearingInjuryBriefat2,1114,2829,43;SunivasPosthearingInjuryBriefat2,Exhibit9atQuestion9,AttachmentK;SunivasPrehearingInjuryBriefat2628.

156CR/PRatTableIII3.Duetothemanyfacilityclosures,theinformationonthedomesticindustrydoesnotincludedataforallU.S.producersofCSPVcellsandCSPVmodulesthatoperatedduringthePOI,andforsomefirmsonlyaportionoftheirdatawasavailable.Forexample,theCommissionsreportincludedavailableinformationforthreefirmsthatrespondedtoquestionnairesin(Continued)

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thosefacilitieswerenotcommerciallyoperationalbyJuly2017.157Mostoftheproducersthatwentoutofbusinesswereindependentm