THE European Commission has proposed denying three Chinese solar panel producers duty-free access to European markets because of alleged violations of its conditions, according to two sources familiar with the proposal.

    The three, Chinese-Canadian Canadian Solar, ReneSola and ET Solar, have until March 20 to make written submissions to the Commission, with hearings then possible. The Commission is expected to take a final decision in late April or early May.

    Canadian Solar and ReneSola said earlier last week that the Commission had raised issues related to their compliance with the duty-free access “undertaking,” both adding they had fully complied with the agreement. No one was immediately available to respond at ET.

    The European Union concluded an investigation in 2013 into alleged dumping and illegal subsidies for Chinese solar panel producers by allowing a limited amount of panels at a minimum price and key components such as cells free of import duties.

    For Chinese manufacturers not covered by the undertaking, punitive duties amount to an average of 47.7 percent.

    Based on monitoring of a sample of the 121 companies covered by the undertaking, the Commission said its findings justified withdrawing three companies. One source said eight companies had been sampled.

    The Commission, the EU’s executive arm, said the three companies variously failed to report sales as required, offered benefits that effectively undercut the minimum price or sold excessive amounts of other products to customers.(SD-Agencies)