EU revokes commitments on solar modules

ByImplementing Regulation (EU) No 866/2015 of 4 June 2014 the European Commission revokes the adoption of the Letter of commitment from three well-known manufacturers.

Exemption from anti-dumping duties on solar modules against undertaking

Within the framework of the European Anti-dumping duties on imports of crystalline silicon photovoltaic modules and key components thereof (cells) originating in or shipped from the People³s Republic of China, producers of the product concerned could make undertakings exempting their products from the anti-dumping duties.

In addition to the obligation to comply with certain minimum import prices and parallel selling limits, the Commission considered that the obligation included comprehensive documentation and reporting obligations.

Reasons for withdrawing acceptance of the commitments

In the very readable Implementing Regulation (EU) No 866/2015, the Commission now explains why it considers that three specific producers have failed to fulfil their obligation. The Commission considers that no minimum percentage of sales is required for the measurement of a breach of an obligation. Conversely, a withdrawal could threaten even for infringements with small quantities of goods.

Furthermore, there is a risk of revocation if monitoring of the obligation is practically impossible in the Commission’s view. It is the responsibility of the parties to ensure that monitoring can be carried out by the Commission.

Moreover, the acceptance of the undertaking is based on the principle of confidence and any act which could damage the relationship of trust established with the Commission justifies the withdrawal of the acceptance of the undertaking.

Possible consequences for other companies

The Commission clarifies that there have been no systematic violations of the undertaking by a large number of exporting producers or by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME). Therefore, there would be no reason to revoke the acceptance of the undertaking for all exporting producers and the CCCME[/bold].

The withdrawal and thus also the anti-dumping duties on imports of the products of the producers concerned will apply from 06.06.2015. Consequently, from that date, the[bold] importers and/or purchasers[/bold] of this product will face anti-dumping duties applicable to products from all other producers, even if the minimum price limit has been met.

In the Commission’s view, the possibility of a price commitment being withdrawn is a commercial risk that is part of the import transaction. Whether an importer can nevertheless invoke protection of legitimate expectations would, in our view, have to be examined separately for each individual case.