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The European Commission is advancing its anti-subsidy investigation into battery electric vehicle (BEV) imports from China. On 20 August 2024, the Commission shared its draft decision to impose definitive countervailing duties with interested parties, allowing for further comments before finalisation.

The proposed duties have been slightly adjusted based on feedback, with rates ranging from 9% for Tesla to 36.3% for some non-cooperating companies. These duties will be in addition to the existing 10% import tariff. Notably, Tesla was granted an individual duty rate of 9% due to a specific examination of its subsidies.

Interested parties have until 30 August 2024 to comment. The Commission will then finalise its decision, which will be submitted to the Trade Defence Instruments Committee for a binding vote by Member States. A final regulation will be published by 30 October 2024, with duties effective for up to five years, extendable upon review.

This investigation follows concerns about the surge in low-priced Chinese EVs in the EU, with the Commission emphasising that they are adhering strictly to EU and WTO rules.  The investigation has carefully considered all parties' inputs, ensuring transparency and fairness in its conclusions. The measures reflect the EU's commitment to defending its market from unfair trade practices while maintaining compliance with international trade laws. For further information on the draft decision   see also the Commission's Q&A.

Source: European Commission