)
The EU Commission has imposed definitive countervailing duties on imports of battery electric vehicles (BEVs) from China through Implementing Regulation (EU) 2024/2754, applicable as of 30 October 2024. The rationale behind this decision is the finding, after investigation, that the BEV value chain in China benefits from unfair government subsidies that are causing a threat of economic injury to EU BEV producers.
However, the Commission remains open to negotiate price undertakings with individual exporters.
Products affected
The vehicles subject to this anti-subsidy measure are new battery electric vehicles (BEVs), designed primarily for the transport of up to nine persons, including the driver, excluding vehicles of category L and motorcycles, propelled (regardless of the number of wheels set in motion) solely by one or more electric motor(s), including those with an internal combustion range extender (an auxiliary power unit), currently classified under EU CN code ex 8703 80 10 (TARIC code 8703 80 10 10 10).
Definitive countervailing duties applicable for the next five years
From the entry into force of the measures, Chinese exporting producers will be subject to the following countervailing duties for a period of five years:
- BYD Group: 17.0%.
- Geely Group: 18.8%.
- SAIC Group: 35.3%.
- Tesla: 7.8% (upon application for individual examination)
- All other cooperating companies: 20.7%.
- All other non-cooperating companies: 35.3%.
The additional codes assigned to each company for the application of the relevant countervailing duty rate in each case can be found in Article 1 of Regulation (EU) 2024/2754 establishing the measures.
Individual duty rates shall be applicable upon presentation to Member States' customs authorities of a valid commercial invoice containing a dated declaration (additional code D008 in the import declaration) signed by an official of the entity issuing such invoice, identified by his name and function, and bearing the following text:
“I, the undersigned, certify that the (volume) of new battery electric vehicles sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in the People's Republic of China. I declare that the information provided in this invoice is complete and correct.”
If no such invoice is presented, the duty applicable to all other companies shall apply.
The definitive duties shall be collected, but not the amounts secured by way of the provisional countervailing duty imposed on 4 July 2024.
Expiration of measures and refund of countervailing duties paid
The measures will expire at the end of the five-year period, unless an expiry review is initiated before that time.
In addition, importers may request a refund of the amount paid in countervailing duties if they can substantiate with sufficient evidence that their exporter does not receive subsidies or that their subsidy margin is lower than the duties paid.
Further information:
- EU Commission Press release - EU imposes duties on unfairly subsidised electric vehicles from China while discussions on price undertakings continue
- EU Commission Press release – Commission investigation provisionally concludes that electric vehicle value chains in China benefit from unfair subsidies
- Commission Implementing Regulation (EU) 2024/2754 of 29 October 2024 imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China