A German glassmaker and the European Commission have succeeded in a bid to set aside a ruling by the General Court of the EU which favored the attempt by Chinese solar panel glass company Xinyi PV to avoid paying anti-dumping (AD) duties on its products in Europe.
A judgement by the European Court of Justice on Thursday rejected the first part of an appeal which was lodged by the Xinyi Solar-owned business against the AD duties in August 2014.
With Xinyi having responded to the permanent imposition of anti-dumping duties by the EU in May 2014 by making four legal pleas, the rejection of the Hong Kong-listed manufacturer’s initial objection will now be sent back to the EU General Court to consider the remaining three arguments.
The long-running case relates to the AD duties imposed provisionally by the EU on Xinyi and three other Chinese solar glass makers in November 2013, and on the right of Xinyi to be treated as if it were operating under market conditions, rather than receiving state-planned benefits.
The European Commission refused a request, made by Xinyi in May 2013, to be treated as operating under free market conditions on the basis it had benefited from two tax breaks which reduced the normal, 25% rate which would have applied to the business. One tax scheme offered full exemption for two years followed by three years at the half rate of 12.5%, and a second offered Xinyi a lower, 15% rate because it was deemed a high-technology business by the Chinese authorities. Xinyi’s attempt to argue both regimes were temporary was undermined by the Court of Justice pointing out the latter program could be extended on a rolling basis at Xinyi’s request.
In response to Xinyi’s appeal against its lack of market-economy status, the General Court of the EU in March 2016 annulled that decision by the European Commission, explaining the latter had wrongly interpreted the rules for determining the Chinese company’s status, as claimed by Xinyi in the initial part of the first plea of its four-pronged appeal.
