U.S. introduces Section 232 minimum import prices and tariffs for polysilicon supply chain products
Date of publication: August 12, 2026.
Effective December 4, 2026, the United States will implement new Section 232 import measures covering polysilicon and specified downstream products, including certain ingots, wafers, solar cells and solar modules. The measures combine minimum import prices (MIPs), additional ad valorem duties on downstream products, enhanced Customs enforcement and an onshoring incentive program.
The Presidential Proclamation, issued on August 6, 2026, cites national-security concerns associated with U.S. reliance on imported polysilicon and related products used in semiconductor and solar supply chains.
What is changing?
Beginning at 12:01 a.m. Eastern Time on December 4, 2026, covered goods entered for consumption or withdrawn from warehouse for consumption will be subject to a new MIP program. The program establishes the following benchmarks:
Covered product | Minimum import price |
|---|---|
Polysilicon | $21/kg |
Polysilicon ingots and wafers | $100/kg |
Solar cells | $0.22/watt |
Solar modules | $0.38/watt |
The measures apply to the covered HTSUS provisions identified in the proclamation's annexes. These include HTSUS 2804.61.0000 for certain silicon, designated tariff reporting numbers within 3818.00 for certain wafers and related products, and products classified under subheadings 8541.42.00 and 8541.43.00 for photovoltaic cells and modules. Importers should use the HTSUS provisions - not product descriptions alone - to assess scope.
How will the MIP program work?
At entry, importers must submit documentation to U.S. Customs and Border Protection (CBP) establishing or certifying either that:
- The first arm's-length U.S. sale of the imported product - or, where applicable, a downstream product made from it - will occur at or above the applicable MIP; or
- The first arm's-length sale is under fixed terms in a contract entered into before August 6, 2026.
If the required documentation is not submitted, the entry will be subject to a specific tariff equal to the applicable MIP. Where documentation is submitted but the entered value is below the MIP, the importer will owe a specific tariff equal to the difference between the declared entered value and the MIP.
The compliance consequences are significant. CBP is directed to monitor the accuracy of importer documentation and certifications. A materially inaccurate submission or material failure to comply with a certification may result in a permanent prohibition on imports of covered products by the importer and its affiliates, in addition to penalties permitted by law.
Additional 15% tariff on downstream products
In addition to the MIP mechanism, an additional 15% ad valorem Section 232 duty will apply to covered polysilicon ingots, wafers, solar cells and solar modules. Raw polysilicon is subject to the MIP program but is not listed among the products subject to the additional 15% duty. The new measures generally apply on top of other applicable duties, taxes, fees and charges.
Special country treatment applies to the additional tariff:
- For products of Japan, South Korea, Taiwan, Switzerland, Liechtenstein and EU member states, the combined Column 1 HTSUS duty rate and Section 232 additional duty will equal 15%.
- For products of the United Kingdom, the additional Section 232 duty rate is 10%.
The proclamation also permits the U.S. government to alter the application of the MIP and tariffs for trading partners that establish substantially equivalent import-adjusting measures.
Other operational provisions to note
The proclamation includes several additional compliance and planning considerations:
- Foreign-trade zones: Covered merchandise admitted to a U.S. foreign-trade zone on or after December 4, 2026 generally must be admitted in privileged foreign status, unless eligible for domestic status.
- Drawback: Manufacturing drawback may be available for qualifying goods, subject to conditions that include product origin, applicable trade-partner status and polysilicon sourcing requirements.
- Stockpiling scrutiny: The Secretary of Commerce is directed to monitor potential pre-effective-date stockpiling and may coordinate with CBP to restrict imports by companies and affiliates found to be stockpiling covered products.
- Onshoring incentives: Companies may submit plans to build, refurbish or expand U.S. facilities producing polysilicon, ingots, wafers or cells. Approved applicants may receive Section 232 duty relief for certain production equipment and covered-product imports during construction, subject to progress requirements and government oversight. Construction must begin by January 20, 2029 under an approved plan.
Recommended actions for importers and supply-chain stakeholders
Companies importing, purchasing or using covered products should take the following steps ahead of the December 4 effective date:
- Confirm product classifications.Review imported products against the HTSUS provisions in Annex I and Annex II, including component-level classifications where products are further manufactured in the United States.
- Model the duty exposure.Evaluate both the MIP-specific duty risk and the additional ad valorem tariff, alongside ordinary customs duties and any other applicable trade remedies.
- Review pricing and resale arrangements.Identify the first arm's-length U.S. sale and determine whether internal systems, commercial contracts and supporting documents can substantiate compliance with the MIP requirements.
- Preserve pre-existing contract records.For fixed-term contracts signed before August 6, 2026, retain complete executed agreements, pricing provisions, amendments and supporting transaction records.
- Strengthen entry controls.Establish internal review procedures for MIP certifications and documentation, given the potential penalties and import restrictions for inaccurate submissions.
- Assess sourcing and investment options.Consider alternative supply arrangements, including possible U.S. production investments and opportunities under the forthcoming onshoring program.
Outlook
The Department of Commerce, CBP and other agencies are authorized to issue notices, regulations, procedures and technical corrections needed to implement the program. The Secretary of Commerce may also revise MIP levels over time to reflect market conditions or other factors affecting fair-market value. Importers should therefore treat the December 4, 2026 implementation date as the start of an evolving compliance framework and monitor agency guidance closely.
Companies should consult trade counsel or customs specialists regarding product scope, valuation, certification and entry requirements.
For more information on how ONESOURCE Global Trade solutions can assist you, please contact your Account Manager or Customer Success Manager.