Anti-dumping on solar modules – is there a risk of withdrawal of undertakings?

Anti-dumping and countervailing duties have been imposed on solar modules from China in Regulations (EU) 1238/2013 and 1239/2013 for almost a year. These anti-dumping duties amount to up to 53.4% of the value of the product.

However, the European Commission has accepted so-called commitments from Chinese manufacturers. If they undertake to export at a fixed minimum price, no anti-dumping duties will be imposed. The conditions for exemption from anti-dumping duties are extremely formal. In particular, a specific commitment invoice must be submitted. Where the release for free circulation is subject to irregularities in the specific documents to be submitted, exemption from the anti-dumping duty may not be claimed for solar modules.

The EU-ProSun association now claims to have established that Chinese manufacturers are systematically disregarding their actual commitments. Hidden repayments or free bonus amounts mean that the commitments offered are actually not being met. ProSun has lodged a complaint with the European Commission.

Companies should take this as an opportunity to review their cooperation with Chinese exporters. If the Commission finds that Chinese exporters have breached their commitments, the commitments may be withdrawn. In such cases, anti-dumping duties may be imposed subsequently. The European importer bears the risk of revocation of the undertaking. In this case, a special security against the Chinese exporter is offered when drafting the contract.

If you have any questions, we are at your disposal both with regard to commitments on Chinese solar modules and in drafting contracts of sale with Chinese solar module manufacturers. Please contact us.

 

Lawyer Dr. Tristan Wegner

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