Anti-dumping inquiry into Chinese solar and what it means for you

Australia’s Anti-Dumping Commission has initiated an anti-dumping investigation on Chinese-produced solar modules being sold in the Australian market for the period 1 July 2012 to 31 December 2013. In the article below, the Australian Solar Council explains what this means and how it affects you.

The anti-dumping commission will investigate exporters and importers. If the Australian Government finds that solar modules have been sold in the Australian market for less than they are sold in China, they will conclude that dumping has occurred.

Exporters

These are the companies that manufacture and export solar modules from China to the Australian market. Four sample Chinese manufacturers have been selected to be the focus of this investigation. They will provide detailed information to the anti-dumping commission.

From these sample manufacturers the commission will determine for each:

• Did dumping occur?
• If it did occur, what tariff rate will be applied to this company?
• What is the average level of dumping that occurred across the four companies?

These companies have been notified directly by the commission. If you have not been notified, you are not one of these four companies.

What do exporters need to do?

If you are a Chinese manufacturer who exported solar modules to the Australian market during this period, it is essential that you contact the anti-dumping commission and provide them with information on your circumstances.

If you cooperate with the investigation your company will be assessed in its own right.

The potential outcome for you is:

• You are found not to have dumped - no duty will be applied.
• You are found to have dumped - the average level of dumping across the four test companies will be applied to you.

If you do not contact the anti-dumping commission and do not cooperate with them then the highest rate applied to any one of the four test companies will apply to you. This is called the default rate.

Exporters need to provide detailed information to the commission for it to make a ruling. Typically, this takes between 15 and 20 days to complete. In limited circumstances an extension may be granted. The anti-dumping commission will travel to China to meet with exporters to assess their individual cases.

Importers

These are companies who have imported solar modules into Australia from China during the period under investigation. Nine sample importers have been contacted by the commission and will be investigated as a sample set.

The purpose of this investigation is to determine the level of injury that may have been suffered by the complainant.

What do importers need to do?

It would be useful for importers to contact the commission. They will send you a questionnaire. This is generally regarded as a more straightforward process and questionnaires are due on the first of this month.

The timeline

The investigation has 60 days (until 13 July) to conduct the review. A report released around 1 September will provide the industry with a good indication of the commission’s findings. The findings will go to the Parliamentary Secretary for the Department of industry on 16 October. The minister has 30 days in which to respond, or to make a public statement explaining why the response may be delayed. Any penalty duty can be retrospectively applied from 13 July 2014.

Public interest test

Trade issues are by their nature very political. This case is already proving to be high profile, and the Government of China has an interest in its outcome. The decision whether to apply penalty duties is ultimately a political one. The Australian Solar Council will be providing a submission to the commission. We will provide, as an interested party, information about the market, market conditions, size of market and other factors that set the scene for the commission’s investigation. The council will also lobby the government directly on this issue. Similar penalty duties in Europe have had a devastating impact on the solar industry there.

Summary

If you are a Chinese manufacturer exporting to the Australian market, it is essential that you participate in this process. If you do not, you could be at a serious disadvantage. The commission is happy to speak with you at any time and to meet with you in person. If you are an importer, it would be useful to have your voice heard and to provide supporting information.