MOFCOM Announcement No.4, 2014 on Anti-Subsidy Ruling on USA Solar Polysilicon

On July 20, 2012, the Ministry of Commerce (MOFCOM) decided in its annual announcement no.41 to launch an anti-subsidy investigation into the solar-grade polysilicon from the USA under Chinese HS Code 28046190, but except the electronic-grade polysilicon thereunder.

Based on its findings and China's Anti-Subsidy Regulations, on September 16, 2013, the MOFCOM made a preliminary ruling that the investigated USA polysilicon were subsidized, which consequently inflicted material injury on China's solar polysilicon industry.

Now, the MOFCOM hereby gives its final ruling on the case (see the annex), with relevant matters announced below:

1. Final Ruling
Within the investigated period for the case, the investigated products were subsidized, and China's solar polysilicon industry was materially injured, and there is a cause-effect relationship between the subsidy and the material injury.

2. The Investigated Products
Importing solar-grade polysilicon, originating in the USA;
Electrical parameters: phosphorus-based resistivity <300 ohms∙cm (Ω∙cm); boron-based resistivity <2600 ohm∙cm (Ω∙cm); carbon concentration> 1.0 × 10¹⁶ (at/cm3); n-type minority carrier lifetime <500μs; donor impurity concentration> 0.3×10^-9; acceptor impurity concentrations>0.083×10^-9;

Governing Chinese HS Code: 28046190, but except electronic-grade polysilicon used for making semi-conductor products.

3. Anti-Subsidy Duties
As of January 20, 2014, the investigated USA products shall be subjected to China's anti-subsidy duties, whose rates are formulated as below on USA companies:

(1) Hemlock Semiconductor Corporation – 2.1%;
(2) REC Solar Grade Silicon LLC – 0%;
(3) REC Advanced Silicon Materials LLC – 0%;
(4) MEMC Pasadena, Inc. – 0%;
(5) AEPolysilicon Corporation - 2.1%;
(6) All Others – 2.1%

The MOFCOM gives 0% rate to three companies therein for their having micro or no subsidy within the investigated period.

4. Levy Method
As of January 20, 2014, relevant importers shall pay the anti-subsidy duties to China Customs in the formula: Anti-Subsidy Duty Amount = Customs-set Duty-Paid Value × Anti-Subsidy Duty Rate; the import value-added tax shall also be levied ad valorem by using customs-set duty-paid value plus import duty and anti-subsidy duty amounts.

5. Retroactivity of the Anti-Subsidy Duties
As regards the provisional anti-subsidy cash deposit delivered to China Customs during September 20, 2013-January 19, 2014, they shall be converted into the anti-subsidy duties at the duty rates provided herein, with import VAT to be levied;

Where the cash deposit exceeds the anti-subsidy duty amount, and the paid VAT is more than regulated amount, the customs shall return the excess to the payer; any shortage thereof shall not be levied any more.
The anti-subsidy duties shall not be retroactively imposed on the imports done before MOFCOM announcement of relevant provisional anti-subsidy measures.

6. Duty Validity Period
The anti-subsidy duties shall be maintained for five years from January 20, 2014.

7. Review
During the period of the levy, the interested parties may apply in writing to the MOFCOM for conducting review of the levy.

8. Administrative Review and Litigation
The interested parties in objection to the final ruling may apply to the MOFCOM for administrative review and may institute legal proceedings with China court of justice.

9. This Announcement shall enter into force on January 20, 2014.

Annex: MOFCOM Final Ruling for the Anti-Subsidy on Solar Polysilicon from the USA (omitted)



The Ministry of Commerce of China (MOFCOM)
January 20, 2014