MOFCOM Announcement No. 41, 2012 for Anti-Subsidy Probe on U.S. Solar Polysilicon

Issued by: The Ministry of Commerce of the P. R. China (MOFCOM)
Issue No.: Announcement No. 41 of 2012
Issue Date: July 20, 2012

On July 2, 2012, the MOFCOM received a written petition jointly by Chinese industrial representatives Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., Jiangxi LDK PV Silicon Technology Co., Ltd., CHINA SILICON CORPORATION LTD. (SINOSICO) and Daqo New Energy Co., Ltd. (the "petitioners") that are calling for anti-subsidy investigation into solar-grade polysilicons from the United States.

According to China's Anti-Subsidy Regulations, the MOFCOM has made inspections over the petitioner qualification, the targeted import goods, the Chinese-made counterparts, the effect of the targeted imports on domestic industries, and the evidences of the alleged subsidy, injury and their causality.

Based on results of the inspections above, the MOFCOM thinks the petitioners are eligible to represent the domestic industries and their propositions and evidences are compliant with requirements for starting an anti-subsidy investigation.

Therefore, the MOFCOM has decided to start from July 20, 2012 an anti-subsidy investigation into solar-grade polysilicon products originating in the U.S.

Relevant matters are hereby announced:

1. Institution of the Anti-Subsidy

From the announcing date herein, the MOFCOM conducts the anti-subsidy investigation with the subsidy-investigating period spanning from July 1, 2011 till June 30, 2012 and the injury-investigating period from January 1, 2008 till June 30, 2012.

2. Investigated Product and Scope

Investigated Scope: solar-grade polysilicon products originating in the U.S.

Product Name: Solar-Grade Polysilicon

Product Description: rodlike, lump and granular polysilicons made by (improved) Siemens, silicane or other processes with chlorosilane as the raw material.

Electrical Parameters: Phosphorus-based resistivity <300 Ω?cm; Boron-based resistivity<2600 Ω?cm; Carbon intensity>1.0×1016 (at/cm3); n-type minority carrier life<500μs; donor impurity intensity>0.3×109; acceptor impurity intensity>0.083×109

Main Usage: production of solar-grade silicon single crystal rod, directionally solidified polysilicon ingot, and crystalline-silicon photovoltaic cell.

Chinese HS Code: 28046190, but except electronic polysilicon thereof.

3. Investigated U.S. Subsidy Items

Based on MOFCOM inspection, this investigation will cover the following U.S. subsidy items charged by the Chinese petitioners:

U.S. Federal Government Subsidy:

1. Tax credit for advanced energy manufacturing;

U.S. Local Government Subsidies:

2. Michigan State's tax credit for photovoltaic manufacturing;

3. Michigan Economic Growth Authority's High-tech Tax Credit – MCL 208.1431(1)(d);

4. Michigan State's Personal Property Tax Exemption in Distressed Communities – P.A. 328;

5. Michigan State's Industrial Facilities Tax Exemption – P.A. 198;

6. Michigan State's High-tech Anchor Company Tax Credit – MCL 208.1431a, 1431c;

7. Michigan State's business tax credit for alternative energy enterprises;

8. Michigan State's tax exemption for enterprises in Renewable Energy Renaissance Zones;

9. Michigan State's Alternative Energy Personal Property Tax Exemption – MCL 211.9i;

10. Michigan State's Transportation Economic Development Fund – Category A Grant;

11. Tennessee State's infrastructural construction for Hemlock's polysilicon manufacture zone;

12. Tennessee State's funding for Hemlock's employee training

13. Tennessee State - supply of land by Montgomery County to Hemlock at lower-than-consideration price;

14. Washington State-lowered business and occupation tax rates for solar energy manufacturing enterprises;

15. Washington State's business and occupation tax credits for high-tech enterprises, which are based on their R&D costs;

16. Idaho State – Pocatello City's offer of land use to Hoku company free of charge.

However, the following subsidy items may not be investigated hereby:

1. Michigan Economic Growth Authority's Standard Job Creation Tax Credits;

2. Michigan State's Economic Development Job Training (EDJT);

3. Pennsylvania State's Machinery and Equipment Loan Fund (MELF);

4. Idaho State's Workforce Development Training Fund.

4. Registration of Response

Regarding the investigation on subsidy, any interested party may apply for taking legal response to the MOFCOM's Bureau of Fair Trade for Imports & Exports within twenty (20) days from the issue date of this Announcement.

Any investigated exporter or producer shall provide the information of both their export quantity and export value of the investigated products to China during the period of July 1, 2011 till June 30, 2012.

The Referential Format of Registration of Response to Subsidy Investigation is available for downloading from the "case dynamics" section on the MOFCOM's sub-website http://gpj.mofcom.gov.cn (Chinese).

Regarding the investigation on industrial injury, any interested party/government may apply for taking legal response to the MOFCOM's Bureau of Industry Injury Investigation within twenty (20) days from the issue date of this Announcement, meanwhile providing documents describing their capacity, output, inventory, construction or expansion projects, export-to-China quantity and value within the injury investigating period.

The Form of Application for Joining in Solar-Polysilicon Industrial Injury Investigation is available for downloading from the "registration of response" section of China Trade Remedy Information website (http://www.cacs.gov.cn).

5. Failure to Register

Where any interested party/government fails to register its response with the MOFCOM within the time limit prescribed herein, the MOFCOM shall have the power to reject its relevant submissions and to make a ruling based on acquired facts and information.

6. Rights of the Interested Parties/Governments

Where any interested party/government has any objections concerning this investigation, it may submit its opinions in writing to the MOFCOM during the period of its registration of response.

Any interested party/government may refer to the non-confidential version of the written petition by Chinese enterprises, which is available from the "case dynamics" section on the MOFCOM's sub-website http://gpj.mofcom.gov.cn (Chinese) or at the MOFCOM's open anti-subsidy information inquiry office (phone no. 010-65197878).

7. Investigation Mode

The MOFCOM may conduct the anti-subsidy investigation by means of questionnaire, sampling, hearing, or onsite inspection.

8. This investigation, starting from July 20, 2012, normally shall end by July 20, 2013 while may also extend till January 20, 2014 under special circumstances.

9. The MOFCOM Contacts:

The MOFCOM's Bureau of Fair Trade for Imports & Exports:

Address: No. 2, East Chang'an Avenue, Beijing, China
Zip Code: 100731
Tel: 86－10－65198196/65198746/65198747
Fax: 86－10－65198164

The MOFCOM's Bureau of Industry Injury Investigation:

Address: No. 2, East Chang'an Avenue, Beijing, China
Zip Code: 100731
Tel: 86－10－65198062/65198074/65198190
Fax: 86－10－65197578

Annexes:

Referential Form for Registration of Response to Anti-Subsidy Investigation on Solar Polysilicon (omitted)

Petition for Anti-Dumping & Anti-Subsidy Investigations on Import Solar Polysilicon (omitted)