EU anti-fraud office probing imports of Chinese solar panels

22/05/2015 12:00 - 526 Views

May 22 The European Union's anti-fraud office is investigating producers and importers of Chinese solar panels on suspicion that they are evading import duties designed to ensure a fair market, according to a source familiar with the study.

The investigation is part of a series of challenges to Chinese solar equipment producers since the European Commission put in place in 2013 an arrangement allowing Chinese producers to sell into the EU at a minimum price.

EU ProSun, a grouping of EU producers, has complained that Chinese rivals have been getting around this and selling at lower prices by falsely claiming the product is not Chinese or by routing it via other countries not subject to tariffs.

Chinese solar modules not imported under the 2013 minimum price arrangement are subject to anti-dumping and anti-subsidy duties ranging from 33.7 to 64.9 percent.

The investigation by the EU anti-fraud office (OLAF) is "ongoing and well under way", the source familiar with the study said.

If OLAF establishes customs fraud it can recommend that EU member states recover the evaded duties from the EU importers concerned and possibly launch criminal prosecutions against importers who knowingly imported goods with false declarations.

Dutch tax inspectors in March carried out searches at a number of sites on suspicion an importer there had evaded duties of 65 percent, or 1.2 million euros ($1.3 million), by bringing in panels via free ports in Malaysia and Taiwan.

EU ProSun lodged a complaint with EU regulators in April, accusing Chinese producers of trying to dodge the import tariffs by dispatching panels via Malaysia and Taiwan and asking the European Commission to cut off these channels.

In 2013, OLAF detected a similar practice for Chinese screws and bolts, also subject to anti-dumping duties, which were sent to a free trade zone in Indonesia and then re-exported to the EU with documents claiming they were from Indonesia.

Source: Reuters