With the European Union (EU) deciding to remove three China-based PV module makers from the Minimum Import Price (MIP) framework for suspected circumvention of minimum import pricing and import quotas set in 2013, other China-based PV module makers are expected to voluntarily withdraw from the framework and instead export PV modules to Europe made in other countries than China, with such products not subject to the MIP restriction. Based on the situation, orders are likely to release orders to Taiwan-based crystalline silicon solar cell makers, according to industry sources in Taiwan.
The three China-based PV module makers are ReneSolar, CSI and ET Solar, the sources said. EU suspected them to export PV modules produced in countries other than China to Europe in an attempt to evade the minimum import price of EUR0.53/W and an annual import quota set by EU in an agreement with the China government, the sources indicated.
If China-made PV modules are exported to Europe outside of the MIP framework, anti-dumping and anti-subsidization tariff rates of 47% will be imposed, so many China-based PV module makers are expected to quit the MIP framework and evade the heavy taxation through outsourcing production to countries other than China. Thus they can export modules to the EU that are not made in China, the sources said. Such PV modules are expected to be more price competitive than China-made PV modules under the MIP framework because the latter are subject to a minimum import price of EUR0.53/W, the sources indicated.
Thus, these China-based PV module makers are likely to procure solar cells from Taiwan-based makers for outsourced production of PV modules in other countries, the sources said.
However, Taiwan-based solar cell makers should be wary of accepting orders from China-based PV module makers because large growth in imports of PV modules made from Taiwan-produced solar cells may drive the EU to launch an anti-dumping investigation of Taiwan-based makers, the sources pointed out.
