On Thursday 4 July, the European Commission published the implementing regulation imposing provisional countervailing duties (tariffs) on battery electric vehicles from China (see EUROPE 13430/1). Starting 5 July, customs will have to require a bank guarantee equivalent to the amount of the duties from importers of these electric vehicles into the EU.
The customs duty rates have changed slightly since the Commission warned companies at the beginning of June, due to slight calculation errors. The three producers the European Commission focused on and which cooperated with the investigation are subject to the following duties: 17.4% for BYD; 19.9% for Geely; 37.6% for SAIC. Other companies are subject to the 20.8% or 37.6% rate, depending on whether or not they have cooperated with the investigation.
These rates are liable to change at the time the final rates are set, no later than 4 November 2024. Companies will be able to make comments in the coming weeks, defending their case in an attempt to lower the customs duty. The Commission will then carry out verifications and may adjust the rates if necessary.
In addition, the Member States will be asked to give their opinion in the coming weeks on the imposition of definitive measures in accordance with the usual procedure. The duties could be rejected if a majority of Member States voted against them.
The EU car industry is up in arms about the tariffs. European carmakers, particularly in Germany, have largely spoken out against the Commission’s decision. The representative of the German automotive industry, VDA, says that the tariffs “would not only affect Chinese manufacturers, but also European companies and their joint ventures in particular”. This is the case, for example, with the Volkswagen brand, which has a joint venture with the Chinese company SAIC.
According to CECRA, the representative of European car dealers and repairers, the tariffs imposed will have an impact on vehicle prices and therefore on sales volumes in the EU.
The European Commission has been accused of holding back the electrification of the continent’s car fleet. However, it says that it is crucial to protect its clean technology industry as part of the transition, by taking compensatory measures in the face of unfair competition.
The EU also asserts that it is still in discussions with Beijing to find an alternative solution that could cancel out the effect of the Chinese subsidies, but the numerous talks in recent months have not led to such a solution, and the possibility of an agreement on the subject seems fairly remote.
To see the implementing regulation: https://aeur.eu/f/cxt (Original version in French by Léa Marchal)