IMPLEMENTATION LEVEL

Supranational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 25 Dec 2013 | Removal date: open ended
Still in force

Import-related non-tariff measure, nes

 On 18 December 2013, the European Union published regulation 1357/2013 amending the non-preferential rules of origin for solar panels and thus enforcing legally binding rules to establish the non-preferential rules of origin for the product at hand.
According to a report by the Swedish National Board of Trade (cf. Sources), this allowed the EU to implement trade remedies against solar panels originating from China (cf. Related Measures):
Previously, the non-preferential rules of origin for solar panels were allowed to be established based on either changes in the tariff heading (solar cells and solar panels are classified under HS code 8541) or an at least 45% addition in the value-added. The former condition was kept in the rulebook yet it does not usually apply as in the step of transforming solar cells into solar panels, the HS code classification remains the same.
The latter rule on value-added, however, has been switched with a specific manufacturing or processing operation rule. This rule was established to rely on the country where solar wafers are transformed into solar cells, i.e. into the intermediate product and not the final solar panel product.
With this change, according to the interpretation in the report of the Swedish National Board of Trade (p.12), the countervailing duties imposed against Chinese solar panels were thus expanded to include all those including intermediate products (i.e. the solar cells) from China.
The regulation came into force one week after its publication, i.e. on 25 December 2015.
The change in the non-preferential rules of origin constitutes a trade distortion and shall be classified as a red measure, as, according to the WTO Agreement on Rules of Origin, "Members are required to ensure that (...) rules of origin are not used a trade policy instrument" and that "rules of origin do not themselves create restrictive, distorting or disruptive effects on international trade" (as cited in National Board of Trade report, p.2).

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

461 Electric motors, generators & transformers; parts
8501 Electric motors and generators (excluding generating sets).
850110 Motors of an output not exceeding 37.5 W
850120 Universal AC/DC motors of an output exceeding 37.5 W
850131 Of an output not exceeding 750 W
850132 Of an output exceeding 750 W but not exceeding 75 kW
850133 Of an output exceeding 75 kW but not exceeding 375 kW
850134 Of an output exceeding 375 kW
850140 Other AC motors, singlephase
850151 Of an output not exceeding 750 W
850152 Of an output exceeding 750 W but not exceeding 75 kW
850153 Of an output exceeding 75 kW
850161 Of an output not exceeding 75 kVA
850162 Of an output exceeding 75 kVA but not exceeding 375 kVA
850163 Of an output exceeding 375 kVA but not exceeding 750 kVA
850164 Of an output exceeding 750 kVA
471 Electronic valves & tubes; electronic components; parts
8541 Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes; mounted piezoelectric crystals.
854110 Diodes, other than photosensitive or light emitting diodes
854121 With a dissipation rate of less than 1 W
854129 Other
854130 Thyristors, diacs and triacs, other than photosensitive devices
854140 Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes
854150 Other semiconductor devices
854160 Mounted piezoelectric crystals
854190 Parts

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