Sunday 22 March 2015

United States imposes tariffs for major importers of Chinese solar panels


Ministry of Commerce of the United States imposed a duty on imports of Chinese solar panels made of certain components, arguing that manufacturers extract serious benefit from the dumping of subsidies from the Chinese government.
Tariff rate will range from 18.56 to 35.21 percent, according to a source in the US Department of Commerce.
Decision in a sensational trade dispute, it was decided on the basis of the main claims in the petition, which sent a manufacturer of solar components SolarWorld Industries America. While the decision has not yet entered into force and is not the exact wording, but implied that the United States will start to collect toll on the eve of the final decision, which is expected to be made public later this year.
"Today there was an important victory for the solar energy industry of the United States," says Mukesh Dulaney (Mukesh Dulani), president of SolarWorld Industries America, which is based in Hillsboro, Oregon. "We look forward to the end of the illegal Chinese state intervention in the solar market is the US, and are grateful to the Ministry of Commerce for its efforts and support the principles of fair trade."
The decision was made against the backdrop of worsening trade conflict, centered on the rapidly growing solar industry, the center of manufacturing and installation which has shifted over the past decade from Europe to Asia. Although the European Union and presented similar claims China is currently under negotiation between the parties to the conflict and the situation remains tense. The United States wants to follow in the footsteps of India, with its severe demands on localization of production of solar components with the participation of the World Trade Organization.
"We know a lot of producers who observe the rapid changes in the market, which constantly reduces their ability to sell their products at a competitive price," said Sheila Cann (Shayle Kann), vice president of research firm GTM Research, which specializes in the clean energy industry. "For many countries, the solar market is growing very unstable, and at the same time is of strategic importance."
In 2012, the United States imposed duties ranging from 24 to 36 percent on imports of panels made of Chinese solar cells. Duty imposed following the conclusion that the Chinese solar companies receive from the state unfairly high subsidies and dumped on the US market products that cost less than was spent on their production.

Chinese workers assemble a solar panel factory in Hefei, in central China
However, many Chinese companies have been able to avoid paying these fees, by assembling a panel of solar cells, purchased in other countries, particularly in Taiwan, despite the fact that these solar cells consist of components manufactured in China. Last year, SolarWorld Industries America, which is a subsidiary of the German company SolarWorld AG, gave the course of the new case, the purpose of which was to close this loophole, to the solar modules made from Taiwanese cells or cells derived from Chinese components, as well dutiable.
The company SolarWorld Industries America, which also has the support of many other solar manufacturers of the United States, expressed the desire to establish a duty of this size to offset Chinese subsidies that cause dumping situation. A preliminary hearing on the issue of dumping, which resulted in the tariff rate can significantly increase scheduled for July 25th.

Trade situation between China and the EU largely tense
However, this case also revealed disagreement within the American solar industry, where on the one hand, many manufacturers have been forced to go bankrupt, unable to withstand the severe competition from Chinese manufacturers, on the other hand, builders, installers and consumers benefited from the presence in the market of cheap solar panels . With regard to this situation, the trade between the Chinese and the European Union, there sides agreed on the minimum cost of the panels, and imposed quotas on the volume of imported Chinese modules.
However, China only exacerbates tensions, raising the cost of polysilicon for the American and South Korean consumers. Polysilicon is the base component for classical photovoltaic panels. In addition, last month the Chinese have increased the import duty for a number of European countries.
In addition, last month the Ministry of Justice issued an indictment, pleaded guilty, five Chinese soldiers in online attacks against American industrial facilities - primarily at SolarWorld. As a result, computer hacking, were abducted by financial and legal documents - all this happened after the company filed a complaint on illegal trade practices of Chinese manufacturers.

The headquarters of SolarWorld Industries America in Hillsboro, Oregon - the main fighter with the Chinese dumping
Representatives of American industry and political leaders urged the Obama administration to reach an agreement with the Chinese side, but so far these efforts have not borne fruit. However, industry leaders have organized informal talks between SolarWorld and Chinese companies in order to assist in the intergovernmental negotiations.

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