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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : EIC 230/2/3/2/13

8 November 2012

Dear Sirs,

Commercial Information Circular No. 918/2012

European Union (EU)* : Initiation of a Countervailing Proceeding Concerning Imports of Crystalline Silicon Photovoltaic Modules and Key Components (i.e. Cells and Wafers) Originating in the Mainland of China

The European Commission ('the Commission') has announced the initiation of a countervailing proceeding on imports of crystalline silicon photovoltaic modules and key components (i.e. cells and wafers) originating in the Mainland of China. The notice can be accessed through the following link : http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2012:340:0013:0023:EN:PDF.

DETAILS

2.Salient points are set out below -

(a) Date of Publication of the Notice : 8 November 2012
(b) Product Coverage : Crystalline silicon photovoltaic modules or panels and cells and wafers of the type used in crystalline silicon photovoltaic modules or panels. The cells and wafers have a thickness not exceeding 400 μm, currently falling within CN codes ex 3818 00 10, ex 8501 31 00, ex 8501 32 00, ex 8501 33 00, ex 8501 34 00, ex 8501 61 20, ex 8501 61 80, ex 8501 62 00, ex 8501 63 00, ex 8501 64 00 and ex 8541 40 90 (These CN codes are given for information only), excluding:
  • -solar chargers that consist of less than six cells, are portable and supply electricity to devices or charge batteries;
  • -thin film photovoltaic products; and
  • -crystalline silicon photovoltaic products that are permanently integrated into electrical goods, where the function of the electrical goods is other than power generation, and where these electrical goods consume the electricity generated by the integrated crystalline silicon photovoltaic cell(s).
(c) Procedures :
In view of the potentially large number of exporting producers in the Mainland of China involved in the proceeding and in order to complete the investigation within the statutory time limits, the Commission may apply sampling. To enable the Commission to decide whether sampling is necessary and, if so, to select a sample, all exporting producers, or representatives acting on their behalf, should make themselves known to the Commission by providing information requested in Annex A to the notice in question, including, inter alia, contact details, turnover and sales volume, activities of their company/related companies and indication of agreement to their possible inclusion in the sample which implies completing a questionnaire and accepting a visit at their premises to verify their responses. Such information should reach the Commission within 15 days from 8 November 2012, unless otherwise specified.

All interested parties wishing to submit any other relevant information regarding the selection of the sample must do so within 21 days from 8 November 2012, unless otherwise specified.

If a sample is necessary, it may be based on the largest representative volume of the production, sales or exports which can reasonably be investigated within the time available. All known exporting producers, the authorities of the Mainland of China and associations of exporting producers will be notified of the companies selected to be in the sample. All exporting producers selected to be in the sample will have to submit a completed questionnaire within 37 days from the date of notification of the sample selection, unless otherwise specified.

Companies that have agreed to their possible inclusion in the sample but are not selected will be considered to be cooperating ("non-sampled cooperating exporting producers"). Non-sampled cooperating exporting producers wishing to claim an individual subsidy margin must request a questionnaire and return it duly completed within 37 days from the date of notification of the sample selection, unless otherwise specified.

Exporting producers claiming an individual subsidy margin should however be aware that if sampling is applied, the Commission may nonetheless decide not to determine their individual subsidy margin if, for instance, the number of exporting producers is so large that such determination would be unduly burdensome and would prevent the timely completion of the investigation.

In order to determine injury based on, inter alia, positive evidence and objective examination of the volume of the subsidised imports, and in view of the large number of Union producers involved in this proceeding, the Commission has decided to apply sampling, and provisionally selected a sample of Union producers. All interested parties wishing to submit any other relevant information regarding the selection of the sample must do so within 21 days from 8 November 2012, unless otherwise specified.

All interested parties may make their views known, submit information and provide supporting evidence within 37 days from 8 November 2012, unless otherwise specified.

All interested parties may request to be heard by the Commission investigation services. Any request to be heard should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation, the request must be submitted within 15 days from 8 November 2012. Thereafter, a request to be heard should be submitted within the specific deadlines set by the Commission in its communication with the parties.

Interested parties should make all submissions and requests in electronic format (non-confidential submissions via e-mail, confidential ones on CD-R/DVD), and must indicate their name, address, e-mail address, telephone and fax numbers. However, any powers of attorney, signed certifications, and any updates thereof, accompanying questionnaire replies must be submitted on paper, i.e. by post or by hand, at the address below. If an interested party cannot provide its submissions and requests in electronic format, it must immediately contact the Commission. For further information concerning correspondence with the Commission, interested parties may consult the relevant web page on the website of Directorate-General for Trade (DG Trade): http://ec.europa.eu/trade/tackling-unfair-trade/trade-defence/.

Commission address for correspondence:
European Commission
Directorate-General for Trade
Directorate H
Office: N105 08/020
1049 Brussels
Belgium

Fax +32 22985514 (only for correspondence regarding investigating exporting producers & Annex A)
+32 22956505 (for other issues)

E-mail: trade-solar-subsidy@ec.europa.eu (only for correspondence regarding investigating exporting producers and Annex A)
trade-solar-injury@ec.europa.eu (for other issues)

 

Interested parties may request the intervention of the Hearing Officer of DG Trade, who acts as an interface between the interested parties and the Commission investigation services through reviewing requests for access to the file, disputes regarding the confidentiality of documents, requests for extension of time limits and requests by third parties to be heard. The Hearing Officer may organise a hearing with an individual interested party and mediate to ensure that the interested parties' rights of defence are being fully exercised. A request for a hearing with the Hearing Officer should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of investigation, the request must be submitted within 15 days from 8 November 2012. For further information and contact details, interested parties may consult the Hearing Officer's web pages on the website of DG Trade (http://ec.europa.eu/trade/tackling-unfair-trade/hearing-officer/index_en.htm).

(d) Investigation Schedule : Provisional measures may be imposed no later than nine months from 8 November 2012. Investigation will be concluded within 13 months from 8 November 2012.

BACKGROUND

3.The Commission initiated the countervailing proceeding on the basis of a complaint lodged on 26 September 2012 by EU ProSun on behalf of producers representing more than 25 % of the total Union production of crystalline silicon photovoltaic modules and key components. It is alleged that the producers of the product under investigation from the Mainland of China have benefited from a number of subsidies granted by the Government of the Mainland of China. The prima facie evidence provided by the complainant is said to have showed that the volume and the prices of the imported product under investigation from the Mainland of China have had, among other consequences, a negative impact on the level of prices charged by the Union industry and the market share held, resulting in substantial adverse effects on the financial situation of the Union industry.

4.Meanwhile, the Commission has also initiated an anti-dumping proceeding on imports of crystalline silicon photovoltaic modules and key components (i.e. cells and wafers) originating in the Mainland of China. For details, please refer to the Commercial Information Circular No. 716/2012 of 6 September 2012.

ENQUIRIES

5.For enquiries concerning the contents of this circular, please contact the undersigned at telephone number 2398 5350. 

Yours faithfully,

(Leo LEUNG)
for Director-General of Trade and Industry

* The EU includes Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.



Note

  • (1) While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.
  • (2)The biweekly newsletter "Business Alert - EU" of the Hong Kong Trade Development Council provides up-to-date information on the latest developments in EU trade policy and trade regulations. The newsletter is available for free e-subscription and can be accessed through
    http://www.tdctrade.com/alert/eualert.htm.