In accordance with the provisions of the Countervailing Regulation of the People’s Republic of China (hereinafter referred to as the “Countervailing Regulation”), on November 1, 2012, the Ministry of Commerce (hereinafter referred to as the “Investigation Authority”) issued an annual announcement No. 70, deciding to carry out countervailing case-filling investigation against imports of solar-grade polysilicon originated in the EU (hereinafter referred to as the “Product under Investigation”), which is listed under tariff code: 28046190 in the Customs Import and Export Tariff of the People’s Republic of China. The electronic-grade polysilicon under this tariff number, which is used to manufacture semiconductor products such as integrated circuits and discrete devices, is not covered by the investigation.

The Investigation Authority has investigated into the existence and amount of subsidies, the existence of damage to China’s domestic polysilicon industry caused by the Product under Investigation and the extent of such damage, as well as the causal relationship between the subsidies and the damage. According to the investigation findings and Article 25 of the Countervailing Regulation, the Investigation Authority released on January 24, 2014 an announcement on the preliminary ruling, affirming that there were subsidies for the Product under Investigation and China’s domestic industries were substantially damaged, and there was causal relationship between the subsidies and the substantive damage.

Upon the preliminary ruling, the Investigation Authority continued its investigation into the subsidies and amount of subsidies, the damage and the extent of such damage, as well as the causal relationship between the subsidies and the damage. The investigation now comes to an end. The Investigation Authority has made the final ruling (See the Annex) according to the investigation findings and the provisions of Article 26 of the Countervailing Regulation. Relevant matters are hereby announced as follows:

I. Final Ruling

Upon investigation, the Investigation Authority made a final ruling that during the investigation period of this case, there were subsidies for the Product under Investigation and China’s domestic solar-grade polysilicon industry was substantially damaged, and there was causal relationship between the subsidies and the substantive damage.

II. Scope of Product under Investigation and Measures

The details of the Product under investigation and the measures taken are as follows:

Scope of Investigation and measures: imports of solar-grade polysilicon originated from the European Union

Name of the Product under Investigation: Solar-Grade Polysilicon

Detailed Description of the Product under Investigation: they are produced by processes of the (modified) Siemens process, silane process and some other process with chlorosilanes as the raw material. They are used to produce rod polysilicon, massive polysilicon and granular polysilicon products for crystalline silicon photovoltaic batteries.

Electrical Parameters of the Product under Investigation: Phosphorus-based Resistivity ＜300Ω•cm; Boron-based Resistivity ＜2,600Ω•cm; Concentration of Carbon ＞1.0×1016 (at/cm3); N-type Minority Carrier Lifetime＜500μs; Donor Impurity ＞0.3×10-9; Acceptor Impurity＞0.083×10-9.

Main Usage: it is mainly used for the production of solar-grade silicon monocrystalline rod and directional solidification polysilicon silicon ingot, and it is the major raw material for the production of crystalline silicon photovoltaic batteries.

The product is included under a tariff number of 28046190 in the Customs Import and Export Tariff of the People’s Republic of China. The electronic-grade polysilicon under this tariff number, which is used to manufacture semiconductor products such as integrated circuits and discrete devices, is not covered by the investigation.

III. Levy of Countervailing Duties and Price Commitment

The Investigation Authority, in accordance with relevant provisions of the Countervailing Regulation, proposed suggestions on the levy of countervailing duties to the Customs Tariff Commission of the State Council, which then decided, as of May 1, 2014, to impose countervailing duties on imports of solar-grade polysilicon originated in the EU. Rates of countervailing duties against companies are as follows:

Company Name Rate of Ad Valorem Subsidies

Germany Schmid Group 1.2%

Joint Solar Silicon (JSS) 1.2%

Italy MEMC Electronic Materials SpA 1.2%

MEMC Electronic Materials 1.2%

SILFAB S.p.A. 1.2%

Estelux S.r.l. 1.2%

PrimeSolar S.r.l. 1.2%

Spain Siliken Spain 1.2%

All Others 1.2%

Upon the preliminary ruling, WackerChemie AG, the respondent enterprise of the EU (hereinafter referred to “Wacker”), submitted the price commitment to the Investigation Authority. The Investigation Authority reviewed the commitment and considered it acceptable. According to the provisions of the Countervailing Regulation, the Investigation Authority decided to accept the application of Wacker for price commitment, which shall come into effect together with this final ruling. During the period of price commitment, the Product under Investigation imported from Wacker shall be exempted from countervailing duties. In case of any violation of the price commitment or any other situation leading to the termination of such commitment, the countervailing duties shall be levied based on the rate of ad valorem subsidies of the final ruling.

IV. Methods of Levying Countervailing Duties

As of May 1, 2014, imieport operators shall pay relevant countervailing duties to the Customs of the People’s Republic of China when importing the Product under Investigation. The countervailing duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: Countervailing duties = (dutiable value authorized by China Customs × rate of countervailing duties). The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and countervailing duties as the taxable value.

V. Retrospective Collection of Countervailing Duties

Retrospective collection of countervailing duties will not be carried out for imports of solar-grade polysilicon originated in the EU that were imported before the announcement of preliminary ruling.

VI. Period of Levying Countervailing Duties and Price Commitment

The period of levying countervailing duties and price commitment on imports of solar-grade polysilicon originated in the EU shall be two years starting from May 1, 2014.

VII. Review

During the period of levying countervailing duties and price commitment, relevant interested parties may apply in writing to the Investigation Authority for an interim review in light of the provisions of the Countervailing Regulation.

VIII. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the final ruling of this case, the decision to levy countervailing duties or the price commitment may, according to the provisions of Article 52 of the Countervailing Regulation, apply for an administrative reconsideration or initiate a litigation to the people’s court according to the law.

IX This Announcement shall come into force as of May 1, 2014

Ministry of Commerce of the People’s Republic of China

April 30, 2014

Translated by Hou Zuowei

(All information published in this website is authentic in Chinese. English is provided for reference only. )