Brussels, 12 June 2024
As part of its ongoing investigation, the Commission has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers. The investigation also examined the likely consequences and impact of measures on importers, users and consumers of BEVs in the EU.
Consequently, the Commission has reached out to Chinese authorities to discuss these findings and explore possible ways to resolve the issues identified in a WTO-compatible manner.
In this context, the Commission has pre-disclosed the level of provisional countervailing duties it would impose on imports of battery electric vehicles (‘BEVs’) from China. Should discussions with Chinese authorities not lead to an effective solution, these provisional countervailing duties would be introduced from 4 July by a guarantee (in the form to be decided by customs in each Member State). They would be collected only if and when definitive duties are imposed.
The individual duties the Commission would apply to the three sampled Chinese producers would be:
- BYD: 17,4%;
- Geely: 20%; and
- SAIC: 38,1%.
Other BEV producers in China, which cooperated in the investigation but have not been sampled, would be subject to the following weighted average duty: 21%.
All other BEV producers in China which did not cooperate in the investigation would be subject to the following residual duty: 38,1%.
Procedure and next steps
On 4 October 2023, the Commission formally initiated an ex-officio anti-subsidy investigation on imports of battery electric vehicles for passengers originating in China. Any investigation shall be concluded within maximum 13 months of initiation. Provisional countervailing duties may be published by the Commission within 9 months after initiation (i.e. by 4 July at the latest). Definitive measures are to be imposed within 4 months after imposition of the provisional duties.
Following a substantiated request, one BEV producer in China – Tesla – may receive an individually calculated duty rate at the definitive stage. Any other company producing in China not selected in the final sample that wishes to have its particular situation investigated can ask for an accelerated review, in line with the basic anti-subsidy Regulation, just after imposition of definitive measures (i.e. 13 months after initiation). The deadline for concluding such a review is 9 months.
Information about the intended levels of provisional duties is provided to all interested parties (including Union producers, importers and exporters and their representative associations, Chinese exporting producers and their representative associations, and the country of origin and/or export, i.e. China), and to the EU Member States before any such measures are imposed, in line with the procedures set out by the EU basic anti-subsidy Regulation. This information is also being made public on the Commission’s website.
Sampled companies have individually received information about their own calculations and have the possibility to comment on the accuracy thereof. Should these eventual comments provide sufficient counter-balancing evidence, the Commission can revise its calculation in accordance with EU law.
More information
EU Commission: Q&A on the pre-disclosure of duties on imports of subsidised electric cars from China*
Brussels, 12 June 2024
What is pre-disclosure and why is it necessary?
According to the EU basic anti-subsidy regulation, the Commission is under the obligation to pre-disclose to interested parties the intended imposition of provisional measures. This is why, before the scheduled date for provisional findings, the Commission informs all interested parties as to whether it plans to impose provisional tariffs (‘pre-disclosure’).
The pre-disclosure was sent to all interested parties – including the Government of China and Chinese companies – and to EU Member States. It was also published on the Commission’s website.
Individually, sampled companies received detailed information on their own calculations. This is to allow these companies to provide comments on the accuracy of the duty rate calculations: they will be given 3 working days to exercise that right. If the comments received from the companies concerned following pre-disclosure provide sufficient counter-balancing evidence, the Commission can revise its calculations in accordance with the law and calculate new levels of provisional duties.
In addition, pre-disclosure aims at informing the market at large about the forthcoming imposition of measures.
Would the proposed duties be added on top of the current import duties of 10%?
Yes, countervailing duties would be added on top of the ordinary import duty of 10% levied on imports of battery electric vehicles.
What is the Member States’ role on the pre-disclosed duties?
As in all trade defence investigations, a detailed presentation to the Member States on the level of intended provisional duties will take place after pre-disclosure, and before the imposition of provisional countervailing duties. The presentation focuses on the procedural aspects of the investigation, outlining the evidence base and methodology used for the calculation of provisional duties.
Are the duties already in force?
The duties pre-disclosed are not in force. Sampled companies now have the possibility to provide comments only on the accuracy of the calculations. Then, by 4 July 2024 at the latest, the Commission would publish in the Official Journal a regulation explaining in detail the provisional findings which led to this level of duties. Duties would enter into force on the day following publication.
From the day following the publication, provisional duties shall be secured by a guarantee (in a form to be decided by customs in each Member State). Finally, they would be collected only if and when definitive duties are imposed.
Do industry and market operators have enough time to prepare for eventual tariffs?
Today’s pre-disclosure is taking place sufficiently in advance to allow interested parties to fully exercise their procedural rights and to confirm to market operators the upcoming imposition of provisional duties. The very initiation of the investigation already started preparing market operators to the possibility of the imposition of the duties, as well as the registration of imports (3 months ago) to the possibility that such duties might be collected retroactively.
The procedure is transparent and ensures due process for the parties concerned. The Commission is committed to ensuring a rules-based international trade system, in respect of EU rules – which in turn are fully in line with relevant WTO law.
Is the level of duties sufficient to protect EU industry from injury?
The purpose of the provisional countervailing duties would be to remove the substantial unfair competitive advantage of Chinese battery electric vehicles (‘BEVs’) producers due to the existence of unfair subsidy schemes in China. The duties would therefore aim to ensure that EU and Chinese industries compete on a level playing field. The aim is not to close the EU market to such imports.
How were the provisional countervailing duties calculated?
The provisional duties are the result of an EU anti-subsidy investigation which revealed that the entire BEV value chain is heavily subsidised in China, and that imports of Chinese BEVs presented a threat of clearly foreseeable and imminent injury to EU industry.
The Commission analysed a large volume of evidence relating to each of the investigated companies and on this basis was able to calculate a level of provisional duties corresponding to the levels of subsidisation found in each case.
Who was consulted in the process of the investigation?
The Chinese government enjoys procedural rights to participate in the investigation, as do relevant companies and stakeholders. All the information requested to interested parties, as well as the applicable deadlines, were in line with applicable EU and WTO rules and longstanding practices. The Commission has reached out to Chinese authorities to discuss the provisional findings and explore possible ways to resolve the issues identified in a WTO-compatible manner.
Can pre-disclosed tariffs be challenged?
The pre-disclosure cannot be challenged as such. Only the companies concerned can provide factual comments on their individual duties’ calculations, which, if found warranted, would be taken into account in the provisional regulation to be published by 4 July.
The Commission will continue to monitor the BEV market situation.
Is the EU examining the possibility of investigations into other countries?
We have not seen any evidence of a recent rapid rise in imports of BEVs from other countries. Therefore, we cannot substantiate the possibility of a threat of injury to EU BEV industry needed to trigger the initiation of an investigation.
Were Member States informed? What is their role?
Member States were informed at the same time as interested parties in the investigation.
Following the ordinary trade defence procedure, Member States do not vote on the level of provisional countervailing duties. However, they will be briefed on the provisional findings of the Commission ahead of their publication and will vote afterwards, by simple majority pursuant to the advisory procedure under comitology rules. This vote will follow the so-called advisory procedure (no binding effect).
At definitive stage, before the imposition of definitive measures, Member States will vote pursuant to the examination procedure under comitology rules. This vote will have binding effect. In order to oppose the measures, qualified majority is needed, as for approval. However, measures can be imposed even if the qualified majority is not reached, provided the votes against do not reach a simple majority.
Are there discussions between the Commission and the Member States about what the definitive level of the EU response should be?
No, as the level of the duties which would be proposed by the Commission at definitive stage, if any, is the result of the evidence and findings gathered by the investigation, notably of the degree of subsidisation found by the Commission for each of the investigated exporting producers.
Ahead of the imposition of definitive countervailing duties, if any, the Member States would have the possibility to vote on the proposal by the Commission.
Will the duties be collected retroactively?
The pre-disclosure is limited to informing interested parties about the level of the provisional countervailing duties. Any potential retroactive collection of the duties on imports that is registered as of 90 days prior to the date of imposition of provisional measures (e.g. as of 5 April 2024, if duties enter into force on 5 July 2024) would be addressed at a later stage in the investigation, which would decide whether legal conditions for such a retroactive collection are met.
Are the duties on electric vehicles expected to negatively affect the green transition?
A successful green transition worldwide will be achieved most effectively and rapidly through fair competition and adherence to global rules. While the EU welcomes imports of goods necessary for the green transition and to achieve the relevant targets, these imports must compete on fair terms with the corresponding EU goods. If these imports are unfairly subsidised, they unduly hurt the EU industry and ultimately undermine the achievement of these goals.
The battery electric vehicle sector is crucial for the EU to achieve its green transition ensure that by 2035 all new cars registered in Europe are zero-emission. We must therefore prevent strategic dependencies on foreign partners in this critical sector.
The EU’s green transition cannot be based on unfair imports at the expense of EU industry.
What are the next steps?
After pre-disclosure, sampled companies now have the possibility to provide comments on the accuracy of the pre-disclosed calculations of their individual duties.
Then, by 4 July 2024 at the latest, the Commission would publish in the Official Journal a regulation explaining in detail the provisional findings which led to the level of the duties. Duties would enter into force on the day following the publication. All interested parties would have 15 days to make comments. Comments on information provided by other interested parties in reaction to the disclosure of the provisional findings should be submitted within 7 days of the deadline to comment on the provisional findings.
According to EU rules, should any company producing in China not selected in the final sample wish to have its particular situation investigated, it can either:
- claim individual examination (IE) in the framework of the current investigation, or
- ask for an accelerated review in accordance with the basic Anti-subsidy Regulation just after imposition of definitive measures (i.e. 13 months after initiation).
As the conditions for requests under the first option can no longer be met as it would prevent the investigation to be completed on time, the findings from the sampled companies will be applied to the other non-sampled exporting producers in China. Regarding the second option, the deadline for concluding such accelerated review is 9 months. Following a substantiated request, one BEV producer in China – Tesla – may receive an individually calculated duty rate at the definitive stage.
Finally, interested parties – including the Government of China and Chinese companies – would have the possibility to provide wider comments and request to be heard within 10 days. The Commission would have 4 months to reach its definitive findings in the investigation. The essential facts and analysis on the basis of which the final findings are made would be disclosed in writing to interested parties (“final disclosure”). Eventual measures would be in force for 5 years.
For more Information
Statement von Danial Caspary (CDU) zu Strafzöllen für Elektroautos ausChina
ZurAnkündigung der EU-Kommission, Strafzölle auf chinesische Elektroautos zu verhängen, erklärt Daniel Caspary (CDU), Vorsitzender der CDU/CSU-Gruppe im Europäischen Parlament:
“Diese Entscheidung war überfällig und ist völlig angemessen. Die Schwämme an Elektroautos, die unter Produktionskosten nach Europa exportiert werden, ist nicht hinnehmbar. Es ist richtig dass die EU unsere Automobilhersteller in Deutschland und Europa schützt.
Die angekündigten Strafzölle unterscheiden sich deutlich von den amerikanischen Sonderzöllen auf Elektroautos. Die heute angekündigten Strafzölle dienen dazu, die Preise von chinesischen Elektroautos in Europa auf ein realistisches Maß anzuheben. Sollten sie im Juli zur Anwendung kommen hätten europäische Hersteller wieder die Möglichkeit, im fairen Wettbewerb anzutreten. Dieser Schritt ist maßvoll und verhältnismäßig. Gegenreaktionen von chinesischer Seite wären deshalb unangemessen.
Unabhängig von der heutigen Entscheidung muss sich die VolksrepublikChinaendlich überlegen ob sie bereit ist, sich dem multilateralen Regelwerk der Welthandelsorganisation unterzuordnen. WillChinaweiter mit unlauteren Mitteln die globalen Handelsströme und den Wettbewerb verzerren? Will die chinesische Führung Teil einer fairen Handelswelt sein oder willChinaweiter den Welthandel durcheinander bringen? Die Europäische Union ist wachsam und handlungsfähig. Wir haben nicht nur das heute zur Anwendung gebrachte Anti-Dumping Instrument, sondern einen ganzen Strauß an Maßnahmen, die ergriffen werden können.”
Quelle – CDU/CSU per E-Mail
Anna Cavazzini (Grüne/EFA): EU-Zölle gegen chinesische Elektroautos richtige Entscheidung
Brüssel, 12. Juni 2024
Gerade hat die EU-Kommission ihre Entscheidung für Zölle auf chinesische E-Autos bekannt gegeben. Grundlage dafür ist ein Verfahren im Rahmen der Anti-Subventions-Maßnahmen, welches bereits im Oktober 2023 ex officio eröffnet wurde.
Anna Cavazzini, Vorsitzende des Ausschusses für Binnenmarkt und Verbraucherschutz, kommentiert diese Entscheidung wie folgt:
“Die Entscheidung der Kommission ist eine gute Nachricht für EU-Unternehmen – sie sichert die Wiederherstellung fairer Wettbewerbsbedingungen zwischen der EU und China. Die neuen Zölle schaffen Chancengleichheit für alle Hersteller, ihre Produktion schnellstmöglich auf E-Autos umzustellen, das ist zur Umsetzung des Green Deals dringend notwendig.
Die EU beginnt keinen Handelskrieg – Handelsschutzinstrumente wie die heute erlassenen Zölle sind konform mit internationalem Recht und das Ergebnis einer detailgenauen monatelangen Prüfung. Wir als EU dürfen nicht machtlos zuschauen, wenn sich Länder wie China aggressiv auf unseren Markt dumpen – wir müssen unsere Werkzeuge für fairen Wettbewerb konsequent anwenden und schärfen.
Massive Subventionen in Chinas Industrie führen zu einem globalen Unterbietungswettbewerb, bei dem die europäische Industrie keine Chance hat ohne entsprechende Schutzzölle. Damit wir weiterhin grüne Technologien Made in Europe produzieren, müssen faire Marktbedingungen eingehalten werden – daran hängen viele Arbeitsplätze vor Ort.
Doch Handelsschutzinstrumente alleine reichen nicht: Wir müssen auch die Nachfrage nach grünen Industrien made in EU steigern und dafür die öffentliche Beschaffung strategischer nutzen. Ich fordere, dass die Kommission in der kommenden Legislaturperiode eine Revision der Beschaffungsrichtlinien vorschlägt und nachhaltige und regionale Kriterien verpflichtend verankert.”
ACEA comment on China anti-subsidy investigation and provisional duties
Brussels, 12 June 2024
The European Automobile Manufacturers’ Association (ACEA) takes note that the European Commission has decided to impose provisional countervailing duties on imports of electric cars manufactured in China, based on initial findings of an anti-subsidy investigation initiated last year.
ACEA has consistently affirmed that free and fair trade is essential in creating a globally competitive European automotive industry, while healthy competition drives innovation and choice for consumers.
Free and fair trade means guaranteeing a level playing field for all competitors, but it is just one important part of the global competitiveness puzzle.
“What the European automotive sector needs above all else to be globally competitive is a robust industrial strategy for electromobility,” stated ACEA Director General, Sigrid de Vries.
“This means ensuring access to critical materials and affordable energy, a coherent regulatory framework, sufficient charging and hydrogen refilling infrastructure, market incentives, and so much more.”
The investigation will continue for several months until the Commission decides whether to propose definitive anti-subsidy measures. Member states will then vote on such a proposal.
What the European automotive sector needs above all else to be globally competitive is a robust industrial strategy for electromobility.
Further information
- Find out more about EU-China vehicle trade in our fact sheet: https://www.acea.auto/fact/fact-sheet-eu-china-vehicle-trade-2024/
- The European Automobile Manufacturers’ Association (ACEA) represents the 15 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Toyota Motor Europe, Volkswagen Group, and Volvo Group
- Visit www.acea.auto for more information about ACEA.
About the EU automobile industry
- 12.9 million Europeans work in the automotive sector
- 8.3% of all manufacturing jobs in the EU
- €392.2 billion in tax revenue for European governments
- €101.9 billion trade surplus for the European Union
- Over 7% of EU GDP generated by the auto industry
- €59.1 billion in R&D spending annually, 31% of EU total
Source – ACEA by email
BDI zu Ausgleichszöllen auf chinesische Elektroautos: Ausgleichszölle sind deutliche handelspolitische Antwort, die Folgen haben wird
Wolfgang Niedermark, Mitglied der BDI-Hauptgeschäftsführung, über die Entscheidung der EU-Kommission, Ausgleichszölle gegen chinesische E-Autos zu verhängen:„Ausgleichszölle sind deutliche handelspolitische Antwort, die Folgen haben wird.“
- „Die von der EU verhängten Ausgleichszölle sind eine deutliche handelspolitische Antwort, die nicht ohne Folgen bleiben dürfte. Jetzt muss es darum gehen, negative Auswirkungen auf internationale Lieferketten und europäische Unternehmen so gering wie möglich zu halten. Europäische Unternehmen haben kein Interesse daran, dass sich ein Handelskonflikt mitChinahochschaukelt.
- Die EU verfügt über handelspolitische Schutzinstrumente gegen Waren aus Drittländern, die durch Dumping oder Subventionen zu verzerrten Preisen auf den EU-Markt gelangen könnten.Chinahat nach den geltenden WTO-Regeln einen Wettbewerbsverstoß begangen. Dies hat die EU nach intensiver Prüfung festgestellt.
- Seit dem BDI-Positionspapier von 2019 herrscht Konsens in der deutschen Industrie, dass Chinas staatlich gelenktes hybrides Wirtschaftssystem nach anderen Kriterien funktioniert. Folgerichtig ist, dass die EU ihre Defensiv-Instrumente auch konsequent einsetzt. Sie garantieren eine Balance zwischen den Vorteilen von Offenheit und Austausch auf der einen Seite und den Nachteilen von Wettbewerbsverzerrungen und Sicherheitsrisiken auf der anderen Seite. Die deutsche Industrie setzt sich dafür ein, dass sich diese Balance in den Maßnahmen von Bundesregierung und EU-Kommission widerspiegelt. Schieren Protektionismus lehnen wir ab. Neben defensiven Instrumenten braucht es zusätzlich eine positive Handelsagenda, die unseren Unternehmen neue Marktchancen in anderen Ländern und Regionen öffnet.”
Quelle – BDI per E-Mail
T&E: EV tariffs alone will not deliver on the promise of the EU Green Deal
June 12, 2024
Electric vehicles made in China will be subject to EU import tariffs of up to 38.1%, the European Commission announced today. Green group Transport & Environment welcomed the announcement but said a broader industrial policy that includes the 2035 EU deadline for polluting car sales is needed to build up the EV supply chain in the EU while delivering affordable, Made-in-Europe electric cars.
Julia Poliscanova, senior director for vehicles and emobility supply chains at T&E, said:
“The EU Green Deal came with the promise of growth and jobs, and that’s not possible if our EVs are all imported. The tariffs are welcome but Europe needs a strong industrial policy to speed up electrification and localise manufacturing. Just introducing tariffs while scrapping the 2035 deadline for polluting cars would slow down the transition and be self defeating.”
Maintaining the EU’s CO2 goals for carmakers, including the 2035 zero-emission cars target, is essential to send the right signal to carmakers, T&E said. An EU industrial policy should also set strong sustainability criteria that can reward local clean manufacturing. An EU investment plan is needed to support EV and battery manufacturing in a more effective way than the current patchwork of national state aid.
One in four EVs sold in Europe this year could be imported from China, according to T&E analysis published in March. The EU will keep three-quarters of the revenue raised from tariffs, and T&E said this money should be allocated to scaling up the battery supply chain via the EU Innovation Fund.
Source – T&E