The European Commission has imposed provisional countervailing duties on imports of battery electric vehicles (BEVs) from China. This action follows a nine-month anti-subsidy investigation that found the Chinese BEV value chain benefits from unfair subsidies, posing an economic threat to EU BEV producers. The Commission is continuing discussions with the Chinese government to find a WTO-compatible solution.
Key Highlights:
- Duties imposed on three sampled Chinese producers:
- BYD: 17.4%
- Geely: 19.9%
- SAIC: 37.6%
- Other cooperating Chinese BEV producers face a 20.8% weighted average duty, while non-cooperating companies face a 37.6% duty.
- Provisional duties effective from July 5, 2024, for up to four months.
- Final decision on definitive duties to be made by EU Member States within this period.
- Investigation initiated on October 4, 2023, following concerns over low-priced Chinese BEV exports to the EU.
The Commission has intensified consultations with the Chinese government, aiming for a resolution that addresses the EU’s concerns over unfair subsidization. The provisional duties, slightly adjusted from the pre-disclosed rates based on accuracy comments, are detailed in the Implementing Regulation published in the Official Journal.
The process includes:
- Formal anti-subsidy investigation initiation on October 4, 2023.
- Provisional duties applied as a guarantee, potentially collected if definitive duties are imposed.
- Member States vote on provisional measures within 14 days of publication.
- Interested parties can request hearings and provide comments within 15 days of provisional measures’ entry into force.
- Commission discloses proposals for definitive measures and allows time for comments.
- Final determination presented to Member States for a binding vote.
- Definitive measures in force for five years, extendable upon review.
One BEV producer in China, Tesla, may receive an individually calculated duty rate at the definitive stage. Other companies not in the final sample can request an accelerated review within nine months after definitive measures are imposed.
This investigation stems from growing concerns over the rise in low-priced Chinese electric vehicle exports to the EU, announced by European Commission President Ursula von der Leyen on September 13, 2023. The Commission is adhering to strict legal procedures in line with EU and WTO rules, ensuring all parties can present their comments and evidence.
For more information, visit the Commission’s Trade website.
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