MIP update (July the 19th 2017), Key Takeaways:

On 19 July 2017, the EU Commission disclosed to all interested parties the essential facts and considerations of the investigation and invited them to comment within 14 days.

Under-Taking Operations:

No more monthly reporting by the CCCME.
No more quarterly reporting to the commission by all exporting producers.
No more importation-volume caps
It will be up to the Union customs authorities to verify if the companies involved did not enter into any cross compensation agreements and other arrangements circumventing the MIP.

New MIP to differentiate Multi and Mono Crystalline technologies

It is designed, on one hand, to better protect the Union industry, which is increasingly focusing on manufacturing high-end mono-crystalline products for the rooftop sector. On the other hand, such a distinction will serve better the interests of unrelated importers and Engineering, Procurement and Construction companies (‘EPCs’) active in the utility-scale sector, which need access to cheap, commodity type multi-crystalline modules to be able to compete with other renewable energy sources in technology neutral tenders.

Mono-crystalline and multi-crystalline cells can be easily distinguished by customs authorities.

Indeed mono-crystalline products can be identified from multi-crystalline products by physical inspection. The multi-crystalline cell is perfectly rectangular. A mono-crystalline cell, by contrast, has its four corners cut off.

MIP Adaptation mechanism:

Most of the interested parties claimed that the new adjustment mechanism should be based on the price quotes by PV Insights. By contrast, the prices quoted by the index used at present i.e. Bloomberg database were subject to much more volatility. The Bloomberg database is based on voluntary price quote submissions, which means that it has captured only a very small part of the market.

The Commission devised a decreasing MIP system based on the PV Insights data, which was considered the most reliable and the most widely used by the solar industry.

The commission also considered to adapt the MIP according to the Solar Industry learning curve but concluded that using the solar industry learning rates to adapt the MIP would introduce considerable uncertainties,

MIP shall wait until September 2018 to be at the actual level of global prices:

As the prices have been going aggressively down over the last three years, the margins of the key manufactures shrank considerably. Therefore, the Commission expected that such an aggressive drop in prices could not be sustained for much longer and the prices in September 2018 would not be significantly lower, and hence still offering some residual protection to the Union Industry.

To whom the new variable MIP shall apply:

The Commission found it appropriate that the new MIP shall only apply to those companies that were still part of the price undertaking or withdrew voluntarily without any previous issues identified by the Commission.

The Commission considered that other companies should not benefit from the new MIP system and be subject to ad valorem duties.

The variable duty MIP will only apply to the legal entities listed in the new Annex VI to be added to Commission Implementing Regulation (EU) 2017/367 and new Annex 5 to be added to the Commission Implementing Regulation (EU) 2017/366.

It is reminded that the undertaking was initially accepted from more than 120 companies/company groups. Commission withdrew its acceptance of the undertaking for 14 companies. 15 other Chinese companies voluntarily withdrew from the undertaking17.

How variable MIP/Duties will be applied:

Where goods are imported at a CIF Union border price equal to or above the variable duty MIP established, no duty would be payable.

If imports are made at a price below the variable duty MIP, the lower of the difference between the applicable variable duty MIP and the net free at Union frontier price, before duty, and the combined ad valorem duty rates set in in Article 1(2) of the Commission Implementing Regulation (EU) 2017/367 and Article 1(2) of the Commission Implementing Regulation (EU) 2017/366 would be payable.

What will be the variable MIP levels:

Period of application of the MIP MIP multi-crystalline cells (EUR/Watt) MIP mono-crystalline cells (EUR/Watt) MIP multi-crystalline modules (EUR/Watt) MIP mono-crystalline modules (EUR/Watt)
From the entry into force of this regulation until 30 September 2017 0.207 0.244 0.415 0.463
From 1 October 2017 until 31 December 2017 0.204 0.237 0.394 0.442
From 1 January 2018 until 31 March 2018 0.201 0.231 0.372 0.421
From 1 April 2018 until 30 June 2018 0.198 0.225 0.351 0.400
As from 1 July 2018 0.195 0.218 0.330 0.38


Each of the four product types Multi/Mono Modules and Multi/Mono Cells should have its own TARIC code:

Multi-crystalline modules shall fall within TARIC codes 8541 40 90 51, 8541 40 90 52, 8541 40 90 53, and 8541 40 90 59.

Mono crystalline silicon photovoltaic modules shall fall within TARIC codes 8541 40 90 41, 8541 40 90 42, 8541 40 90 43, and 8541 40 90 49.

Multi-crystalline cells fall within TARIC codes 8541 40 90 71, 8541 40 90 72, 8541 40 90 73, and 8541 40 90 79.

Mono-crystalline cells fall within TARIC codes 8541 40 90 61, 8541 40 90 62, 8541 40 90 63, and 8541 40 90 69.

You can find the full 21 pages document here:

https://16iwyl195vvfgoqu3136p2ly-wpengine.netdna-ssl.com/wp-content/uploads/2017/07/R673-General-Disclosure-Document.pdf

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