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The European Commission has concluded its anti-subsidy investigation into imports of battery electric vehicles (BEVs) from China, imposing definitive countervailing duties for a period of five years. The investigation identified that China’s BEV value chain benefits from subsidies which present a threat of economic injury to EU BEV producers. Consequently, these duties will take effect the day after publication in the Official Journal.

The countervailing duties, effective from their entry into force, vary among sampled Chinese exporters. This means that the maximum Tariff could be 45,3% for some Chinese BEV producers, as the definitive tariffs will be added to the currently existing 10% rate.

The definitive duties will be collected from the date they come into force, while provisional duties applied on 4 July 2024 will not be retroactively collected. The European Commission will monitor the effectiveness of these measures to prevent potential circumvention. Exporters who cooperated and fall under the sample average duty, or any new exporter, can request an accelerated review to obtain an individual duty rate.

The duties will lapse at the end of five years, unless an expiry review is initiated before that time. Additionally, importers can apply for a refund if they can substantiate that their exporter is not subsidised or that the subsidy margin is below the duties paid. Any such requests must be supported by sufficient evidence.

This investigation, initiated by European Commission President Ursula von der Leyen on 13 September 2023 in her State of the European Union address, was driven by the surge in low-priced Chinese electric vehicle exports to the EU. The Commission adhered to strict legal procedures in line with EU and WTO rules, ensuring that all relevant parties, including the Chinese government and exporters, had the opportunity to submit comments, evidence, and arguments.

Source: DG TRADE