21.06.2024
The Netherlands and the European Commission recently held a ‘constructive dialogue’ regarding the interpretation of the concept of ‘shipped from.’ This concept frequently appears in extended regulations for anti-dumping and countervailing duties. The discussion focused on situations where assembly takes place in a country other than the relevant ‘expansion country.’
Changed Interpretation
Initially, the Netherlands had a different interpretation of ‘shipped from’ than the European Commission. However, the Netherlands has now decided to align with the European Commission’s interpretation. According to Customs, this interpretation appropriately reflects the purpose and intent of trade policy measures.
Practical Implications
From now on, shipments sent from a country other than the expansion country can still be considered as ‘shipped from’ the expansion country for the application of anti-dumping and countervailing duties. This means that goods in such shipments can be subject to extended anti-dumping and/or countervailing duties. This is relevant, for example, for goods subject to extended anti-dumping and/or countervailing duties and where assembly operations occur in a third country before being shipped to the European Union. Starting April 4, 2024, Customs will apply this interpretation of the term ‘shipped from’ to shipments declared from that date onwards.
Background of the Dialogue
The discussion arose based on extented regulations such as Implementing Regulations (EU) 2016/184 and (EU) 2016/185. According to these regulations, anti-dumping or countervailing duties are imposed on solar panels (and solar cells) shipped from Malaysia and Taiwan, regardless of the origin of those cells or panels.
The difference in interpretation between the European Commission and the Netherlands concerned the import of solar panels with the following characteristics:
- The solar panels were shipped to the European Union from third countries like Vietnam, India, and Mexico.
- The solar panels were assembled in those countries from solar cells originating in Malaysia or Taiwan.
The European Commission argued that these solar panels should be considered ‘shipped from’ Malaysia or Taiwan, and that anti-dumping and/or countervailing duties should be paid upon import. The Netherlands believed that the solar panels were technically shipped from the countries where the assembly took place, and therefore, extended anti-dumping and countervailing duties did not need to be paid.
Conclusion
Due to the new interpretation of the term ‘shipped from,’ companies dealing in goods subject to anti-dumping and countervailing duties must pay extra attention to the origin and shipping country of their products. This change can have significant financial implications and requires precise compliance with the new regulations. In case of doubt, contact a consultant from SGS Maco to avoid unpleasant surprises. SGS Maco has long been a specialist in customs brokerage and Fiscal Representation for the import of solar panels and goods in the sustainability sector.
