H296919

H296919 June 25, 2025 OT:RR:CTF:EMAIN H296919 TPB CATEGORY: Classification TARIFF NO.: 9903.45.25; 8541.43.0010 John P. Smirnow Smirnow Law 1717 K Street, NW, Suite 1120 Washington, DC 20006 RE: Classification of certain crystalline silicon photovoltaic modules Dear Mr. Smirnow: This is in response to your letter of April 10, 2018, issued on behalf of Cypress Creek Renewables (“Cypress Creek”), in which you request a binding ruling as to whether certain crystalline silicon photovoltaic (“CSPV”) modules imported from South Korea are subject to the February 7, 2018 safeguard measure on imports of certain CSPV products implemented pursuant to Section 201 of the Trade Act of 1974, as amended (19 U.S.C. §2252) (“Solar 201 safeguard”). Per your request, we offered a meeting, pursuant to 19 C.F.R. §177.4, to further discuss the matter prior to issuing our ruling, but did not receive a response. Our determination as to the applicability of the Solar 201 safeguard is set forth below. FACTS: Your April 10, 2018, letter (“ruling request”) describes the articles to be imported as “72-cell CSPV modules used in large-scale solar arrays.” This description is consistent with an appended product data sheet, which pertains to “Q.ANTUM Solar Modules” made up of “Q Cells.” According to the data sheet, each product consists of 72 monocrystalline photovoltaic cells mounted onto aluminum frame, each is equipped with a junction box containing bypass diodes, as well as a cable and connector, and each and has a measured output ranging up to 370 watts. Additionally, according to “an overview of the anticipated cell and module manufacturing processes” appended as a separate attachment, the cells range from 180 to 200 micrometers in thickness. In your ruling request, you describe the manufacturing process for these products as follows: Malaysian-origin silicon substrates are exposed to phosphorus gas at a high temperature. The phosphorus gas and oxidation of the substrate surface results in a thin phosphosilicate glass (“PSG”) layer on the substrate surface, which combined with the furnace high temperature results in molecular-level diffusion of phosphorous into the substrate. Importantly, the formation of the PSG layer during the diffusion process creates a positive-negative (“P/N”) junction with the wafer. The P/N junction is what enables a CSPV cell to produce electricity. The diffusion process represents an estimated 13 percent of the capital expenditure cots (“capex”) for equipment and facilities for the production processes at issue. The diffuse CSPV cell is then exported to South Korea. Upon importation into South Korea, the diffused CSPV cells first undergo a chemical etching and edge isolation process, which separates the positive and negative layers, and a washing process to remove any remaining surface particles. The etching and edge isolation process represents approximately 7.5 percent of capex. A silicon nitride anti-reflective coating is then applied to reduce reflection and increase the amount of light absorbed into the cells. The cells may also undergo a passivation process. First, a rear surface passivation film is applied. Second, lasers or chemicals are used to open the rear passivation layer and create pockets in the film to absorb more light. Collectively, these light absorption enhancement processes represent approximately 8-10 percent of capex. The CSPV cells then undergo a contact printing and drying process. During this step, metal lines are printed on the front and rear of the cell to collect electricity produced by the cell. The cells are tested under simulated sunlight conditions, and then classified and sorted according to their characteristics and efficiencies. The printing process represents approximately 13 percent of capex, with much of the costs attributable to the need for handling high-cost silver paste. The CSPV cells are then assembled into solar modules. First, a series of CSPV cells is soldered together. A Piece of glass and sheet of ethyl vinyl acetate (“EVA”) are p9laced on the production line, followed by six strings of 12 CSPV cells. A second sheet of EVA, sealant and back sheet are then added. The combined materials are then laminated in a vacuum and cured. At this stage, the completed article is referred to as a “laminate.” Aluminum frames are subsequently attached to the laminate and a junction box is attached to the back side of the module. The finished CSPV modules are then cleaned and inspected. The module assembly process represents approximately 32 percent of capex. (Emphasis in original). You assert that because assembly of the CSPV panels at issue includes certain steps undertaken in the U.S., specifically the creation of the positive-negative (“p/n”) junction in the cells making up the panels, the products fall outside the scope of the Solar 201 safeguard. ISSUE: Whether the CSPV products at issue fall within the scope of the Solar 201 safeguard and are consequently subject to increased duties. 2 LAW AND ANALYSIS: Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The Solar 201 safeguard was implemented in accordance with Presidential Proclamation 9693, dated January 23, 2018, which was promulgated in pursuant to Section 201 of the Trade Act of 1974, as amended (19 U.S.C. §2252). See Fed. Reg. Vol. 83, No. 17 (Jan. 25, 2018). The Solar 201 safeguard establishes a tariff-rate quota and additional duties on imports of CSPV “cells” and “modules.” Id. In particular, the proclamation calls for amendment of Chapter 99, Subchapter III, HTSUS, to create subheadings 9903.45.21 and 9903.45.22, which apply to CSPV cells, and 9903.45.25, which applies to CSPV modules. Id. The proclamation also calls for amendment of Chapter 99, Subchapter III, to create a new legal note, Note 18, to define the products classifiable in subheadings 9903.45.21 to 9903.45.25 and set forth the additional rates of duties to be applied to these products. Id. These amendments to Chapter 99 went into effect on February 7, 2018. The HTSUS headings and subheadings under consideration are as follows: 8541 Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals; parts thereof: Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED): 8541.42 Photovoltaic cells not assembled in modules or made up into panels 8541.43 Photovoltaic cells assembled in modules or made up into panels 3 8541.43.0010 Crystalline silicon photovoltaic cells of a kind described in statistical note 101 to this chapter Crystalline silicon ph

Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The Solar 201 safeguard was implemented in accordance with Presidential Proclamation 9693, dated January 23, 2018, which was promulgated in pursuant to Section 201 of the Trade Act of 1974, as amended (19 U.S.C. §2252). See Fed. Reg. Vol. 83, No. 17 (Jan. 25, 2018). The Solar 201 safeguard establishes a tariff-rate quota and additional duties on imports of CSPV “cells” and “modules.” Id. In particular, the proclamation calls for amendment of Chapter 99, Subchapter III, HTSUS, to create subheadings 9903.45.21 and 9903.45.22, which apply to CSPV cells, and 9903.45.25, which applies to CSPV modules. Id. The proclamation also calls for amendment of Chapter 99, Subchapter III, to create a new legal note, Note 18, to define the products classifiabl