EU Commission proposes provisional duties on Chinese BEVs following subsidy investigation • EVreporter

The EU Commission’s ongoing investigation has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from subsidisation, posing a potential economic threat to EU BEV producers. The investigation also assessed the potential impact of measures on importers, users, and consumers of BEVs in the EU. The Commission has communicated these findings to Chinese authorities to discuss potential resolutions in a WTO-compatible manner.

The Commission has disclosed the provisional countervailing duties it would impose on imports of BEVs from China, effective from 4 July by a guarantee (in the form to be decided by customs in each Member State), unless discussions yield a resolution. These duties would be collected only if definitive measures are imposed.

The provisional duties for three sampled Chinese producers are:

Other cooperating Chinese BEV producers would face a weighted average duty of 21%, while non-cooperating producers would face a residual duty of 38.1%.

Procedure and Next Steps:

• On 4 October 2023, the Commission initiated an anti-subsidy investigation on imports of passenger BEVs from China.

• Investigations are to be concluded within 13 months of initiation, with provisional duties possibly published by 4 July.

• Definitive measures are to be imposed within 4 months after provisional duties.

• Tesla, a BEV producer in China, may receive an individually calculated duty rate at the definitive stage following a substantiated request.

• Other companies not selected in the final sample can request an accelerated review after definitive measures (i.e. 13 months after initiation) are imposed, with a review deadline of 9 months.

Information on the provisional duty levels is provided to all interested parties, including Union producers, importers, exporters, and their representative associations, Chinese exporting producers and their representative associations, and the country of origin/export (China), as well as to EU Member States. This information is also available on the Commission’s website.

Sampled companies have received information about their calculations and can comment on their accuracy. The Commission may revise its calculations based on these comments in accordance with EU law.

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