EU ProSun accuse Chinese manufacturers of breaking sanction deal in Europe
The European solar industry group EU ProSun has submitted over 1,000 pages of documentation to the Directorate-General for Trade of the European Commission, containing about 1,500 proposals by Chinese solar companies offering prices below the minimum level agreed by the EU Commission and China.
Milan Nitzschke, president of EU ProSun, said, "EU trade rules are being systematically violated by Chinese manufacturers. Dumped Chinese solar products continue to flood the EU market, destroying European industry and jobs. The Commission must act fast to stop these violations and implement sanctions."
The EU imposed anti-dumping duties on Chinese solar imports in mid-2013, after state-subsidized dumping from China drove dozens of European solar companies to ruin. In order to circumvent these duties of around 50 percent, over 100 Chinese solar manufacturers offered the EU a contractual undertaking to only import above a minimum price of 56 cents per watt. The European Commission and the European Council agreed to this minimum price offer. However, it is obvious that Chinese companies are neither paying duties nor observing the minimum price agreement.
According to EU ProSun, whoever takes part in such minimum price and customs violations risks severe punishment.
Nitzschke said, "The contract between the EU Commission and the Chinese companies clearly states: the affected manufacturer will be barred from the minimum price agreement for even minor violations of the requirements. The duty of around 50 percent of the import price is then due immediately."
This duty must be paid by the European importer, even after the fact when applicable. In the case of grave customs violations, criminal prosecution is also possible. According to the release EU ProSun believes the entire minimum price agreement between the EU and China must be reviewed.
Nitzschke said, "The minimum price agreement that the European Commission negotiated with China is unworkable. There is still no end in sight for Chinese dumping and the EU must impose duties across the board in the face of such illegal and flagrant trade violations."
