The European Commission has imposed provisional countervailing duties on imports of battery electric vehicles (BEVs) from China, nine months after initiating an ex officio anti-subsidy investigation. The investigation concluded that China’s BEV value chain benefits from unfair subsidisation, posing a threat of economic injury to EU BEV producers. The investigation also considered the potential impact of these measures on EU importers, users, and consumers of BEVs.
In recent weeks, consultations with the Chinese government intensified, following discussions between Executive Vice-President Valdis Dombrovskis and Chinese Trade Minister Wang Wentao. Technical-level contacts are ongoing to reach a WTO-compatible solution that addresses the European Union’s concerns. Any negotiated outcome must effectively address the injurious subsidisation identified says the EC.
The individual duties applying to the three sampled Chinese producers are BYD: 17.4%; Geely: 19.9%; and SAIC: 37.6%. Other BEV producers in China, which cooperated in the investigation but were not sampled, are subject to the 20.8% weighted average duty. The duty for other non-cooperating companies is 37.6%.
Compared to the rates pre-disclosed on 12 June 2024, provisional duties were adjusted slightly downwards based on comments on the accuracy of the calculations submitted by interested parties. These provisional duties will apply as of 5 July 2024, for a maximum duration of four months. Within that timeframe, a final decision has to be taken on definitive duties, through a vote by EU Member States. When adopted, this decision would make the duties definitive for five years.
The investigation was announced by Ursula von der Leyen, President of the European Commission, on 13 September 2023 during her State of the European Union (SOTEU) speech. This decision was based on growing concerns about the recent and rapid rise in low-priced exports of electric vehicles coming from China to the EU.
On 4 October 2023, the investigation was initiated. As a rule, such investigations must be concluded within 13 months of initiation and definitive measures imposed no later than 4 months after imposition of provisional duties. Provisional countervailing duties are secured by a guarantee (in the form to be decided by customs in each Member State), and may be collected under certain circumstances only when a decision has been made to impose definitive duties.
