The European Commission is accusing Chinese photovoltaic manufacturers of violating their Letter of commitment within the framework of the Undertaking System. Therefore, it initiated proceedings to exclude Ningbo Osda Solar Co Ltd, Ningbo Qixin Solar Electrical Appliance Co Ltd and Shandong Linuo Photovoltaic Hi-Tech Co.
The purpose of the Undertaking procedure is to avoid dumped imports: If Chinese producers make undertakings to sell their products at a minimum price set by the EU, anti-dumping duties will not be due.
The Commission justifies a threatened exclusion of companies because they have sold their products below the applicable minimum import price to the EU and have engaged independent importers not listed with the EU. In addition, a company is alleged to have carried out compensatory transactions in order to circumvent the requirements of the undertaking rules.
Commission sees no systematic violations – but reserves the right to review
The three companies would not be the first to be affected by the threat of exclusion: We have already reported the withdrawal of undertakings from other manufacturers. The Commission is therefore also slightly sceptical about the practicability of the undertaking system. It reserves the right to check the effectiveness of the system. Despite the similar structure of the infringements, the Commission does not yet see any systematic violations.
If you have questions about which manufacturers still benefit from the undertaking system and are therefore eligible as trading partners, contact our anti-dumping lawyers
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