German Probe Uncovers Alleged €30M Solar Duty Evasion by Chinese Firms
The Munich Customs Investigation Office and the Public Prosecutor's Office Nuremberg-Fürth are probing suspected duty evasion by Chinese solar cell manufacturers. The investigation involves two fraud scenarios and an intricate network of shell companies.
Over 150 import transactions between November 2013 and November 2016 are under scrutiny. The suspected scheme allegedly involved manipulating the minimum import price regulation or using false country of origin to evade anti-dumping and countervailing duties. The European Union has been imposing these duties on solar modules from China since June 2013, later extended to Taiwan and Malaysia.
Seven suspects, aged 41 to 56 and of Chinese and German nationality, are involved. A Nuremberg company is suspected of evading over 30 million euros in duties. The solar modules were intended for energy and solar parks across Germany and other European countries.
The investigation revealed an elaborate network of shell and letterbox companies in Luxembourg and Hong Kong, used to conceal payment streams and maximize opacity. The company allegedly imported solar modules from China under false pretenses or by circumventing regulations to avoid duties.
The European Commission allowed an agreement with Chinese manufacturers on minimum import prices to expire on October 1, 2017. The ongoing investigation aims to uncover the full extent of the alleged duty evasion scheme and bring those responsible to justice.
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