As part of its ongoing anti-subsidy investigation, the European Commission disclosed to interested parties the draft decision to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China.

BYD at Paris Motor Show. (Source: BYD)

This draft decision reflects the comments received from interested parties on the provisional countervailing duties published on July 4, as well as the conclusion of a number of investigative steps that had not been finalized at provisional stage.

The main novelties in the disclosure of the draft definitive findings are as follows:

• A slight adjustment of the proposed duty rates based on substantiated comments on the provisional measures received from interested parties, as well as the conclusion of investigative steps that had not yet been finalized at provisional stage:

• BYD: 17.0%

• Geely: 19.3%

• SAIC: 36.3%

• Other cooperating companies: 21.3%

• All other non-cooperating companies: 36.3%

• The decision to grant an individual duty rate to Tesla as an exporter from China, established at 9%, at this stage.

• The possibility for several Chinese exporters and certain joint ventures with EU producers, which did not yet export at the time of the investigation period, to benefit from the lower duty rate foreseen for their related cooperating companies.

• The decision not to retroactively collect countervailing duties.

Interested parties have the possibility to request hearings with the Commission services as soon as possible, and to provide comments within 10 days.

After that, the Commission will present the final determination to Member States, which will vote pursuant to the examination procedure under comitology rules. This vote will have binding effect.

Any potential measures will be in force for 5 years, extendable upon substantiated request and subsequent review.

As part of its ongoing anti-subsidy investigation, the European Commission disclosed to interested parties the draft decision to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China.

BYD at Paris Motor Show. (Source: BYD)

This draft decision reflects the comments received from interested parties on the provisional countervailing duties published on July 4, as well as the conclusion of a number of investigative steps that had not been finalized at provisional stage.

The main novelties in the disclosure of the draft definitive findings are as follows:

• A slight adjustment of the proposed duty rates based on substantiated comments on the provisional measures received from interested parties, as well as the conclusion of investigative steps that had not yet been finalized at provisional stage:

• BYD: 17.0%

• Geely: 19.3%

• SAIC: 36.3%

• Other cooperating companies: 21.3%

• All other non-cooperating companies: 36.3%

• The decision to grant an individual duty rate to Tesla as an exporter from China, established at 9%, at this stage.

• The possibility for several Chinese exporters and certain joint ventures with EU producers, which did not yet export at the time of the investigation period, to benefit from the lower duty rate foreseen for their related cooperating companies.

• The decision not to retroactively collect countervailing duties.

Interested parties have the possibility to request hearings with the Commission services as soon as possible, and to provide comments within 10 days.

After that, the Commission will present the final determination to Member States, which will vote pursuant to the examination procedure under comitology rules. This vote will have binding effect.

Any potential measures will be in force for 5 years, extendable upon substantiated request and subsequent review.