A further three Chinese manufacturers have been pulled from the minimum import price (MIP) after they were found to be selling in the European Union at rates below those stipulated by the price undertaking.
Osda, Linuo and Qixin were all removed by the European Commission after it was found they were importing into Europe to related companies and avoiding the 43p/w MIP, according to EU documents.
The agreement was negotiated by the European Commission and the Chinese Chamber of Commerce Import and Export of Machinery and Electronic Products (CCCME).
“…The Commission informed the CCCME about the above breaches by the three exporting producers showing a similar pattern and stated at the same time that should breaches of a similar pattern persist in the future, the Commission might re-assess the overall practicability of the undertaking,” it said in the notification of the latest expulsions.
The trio become the latest companies found to have been in breach of the MIP imposed by the Brussels-Beijing deal that allows companies to avoid punitive trade defence tariffs. In addition to Shinetime, ZN Shine, Canadian Solar, ET Solar and ReneSola being removed, Trina Solar, CNPV, Lerri and Longi have all voluntarily withdrawn.
The Commission’s words represent a change in tone regarding the MIP, with previous notices simply stating that individual breaches did not represent “systematic” failure of the undertaking.
The EU governing body is already carrying out a review of the anti-dumping tariffs which were scheduled to have ended in December 2015. The outcome of the review is of particular interest to the UK as a net importer of solar and therefore subject to higher prices resulting from the MIP.
The Solar Trade Association has estimated that the MIP adds 7% extra to the cost of a typical domestic solar PV installation and 13% to the cost of a large-scale installation and both the energy secretary Amber Rudd and junior minister Andrea Leadsom are on record as being opposed to the scheme.
The Commission's review could see the MIP extended for a further five years however it is widely considered that it will be repealed long before the UK is set to leave EU following the Brexit vote.