Chinese media: Bonded trade is only way out of polysilicon duties

Ministry of Commerce (Mofcom) of China, press conference on February 9, 2017
Will the Chinese Ministry of Commerce allow duty-free processing trade for polysilicon imported from the U.S. again? – Image: Mofcom

Domestic media speculate that China could allow bonded trade to fulfill its commitment to increasing U.S. polysilicon imports under the Phase 1 trade agreement despite extended duties.

Quoting an analysis from the Chinese website, the reports say that the road to cancelling the high duties on polysilicon imports from the USA, which the Chinese Ministry of Commerce (Mofcom) extended on January 19 for another five years, “has been blocked.” According to the reports, a tariff-free import quota “is also difficult to expect.” Therefore, TestPV believes that “the only possibility is bonded processing of incoming polysilicon from the United States.”

So-called bonded or processing trade was exempt from any duties through August 2015 before Mofcom closed this loophole. Processing trade can be conducted with imported goods that are processed into products destined for export from China.

One should not overinterpret the speculative Chinese reports. They may indicate a possible route in the upcoming talks on the Phase 2 trade agreement between the U.S. and China, but can naturally say nothing about the outcome.

Get more information ...

Gain in-depth insight – with the Polysilicon Market Outlook 2024

  • Benefit from 76 pages full of rich data, in-depth analyses and detailed forecasts on the polysilicon, solar and semiconductor industries
  • Learn all about the latest developments of polysilicon manufacturing technologies (Siemens process, fluidized bed reactor, upgraded metallurgical-grade silicon)
  • Obtain comprehensive data on production volumes and capacities of 42 solar-grade and electronic-grade polysilicon plants from 2016 through 2024
  • Gain insight into decisive market trends, based on four sophisticated scenarios of supply and demand through 2024
  • Get valuable guidance with cash cost data on 25 solar-grade polysilicon plants and spot price forecasts through 2024

Go to the Report

Go back


Add a comment

Back to Polysilicon News