Znshine removed from EU minimum price

Another Chinese manufacturer has been removed from the EU minimum price (MIP) undertaking. The MIP allowed Chinese producers to avoid antidumping and countervailing duties on solar module exported to Europe, if they were not sold below a minimum price determined by the European Commission.

Documents published the European Commission and obtained by pv magazine reveal that Znshine will be withdrawn from the arrangement, after violating agreement terms. The EC had carried out an investigation into MIP compliance in partnership with EU member states’ custom bodies.

The EC asserts that some Znshine module exported to the EU were designated as being from a third country, when in fact they were produced in China.

Znshine had been promoting its "made in Japan" modules for some time. The EC documents do not state whether the ‘third party’ in question was Japan.

Furthermore, the EC reports that Znshine included “misleading information” regarding shipment dates and invoices “during a substantial period of time.” This violated the reporting obligation component of the MIP.

The timing of invoicing is important under the MIP, as it ascertains whether and what minimum price applied to invoices. The EC has found discrepancies in Znshine’s invoicing, and has not accepted the company’s explanation that it was due to “a technical error made by inexperienced personnel.”

The EC finding adds to one made in March, in which Canadian Solar, ET Solar and Renesola were found to be in breach of the MIP undertaking, although for different reasons.

The EC ruling requires Znshine to be removed from the MIP undertaking. Despite this, other Chinese manufacturers are not automatically excluded from the MIP.

The EC determination reads: “The responsibility for the [Znshine] breaches lies alone with the exporting producer in question; the monitoring has not revealed any systematic breaches by a major number of exporting producers or the CCCME [China].”

The EC Directorate-General for Trade, Directorate H – Trade Defense, made the determination. Both Znshine and the CCME have been given the opportunity to be heard or comment on the EC determination.