Starting next July 4, Chinese electric cars introduced into the EU will be subject to a provisional tariff of up to 38.1% of the value of the car.
This tariff measure is due to the investigation that the European Commission has been carrying out, since October 4, 2023, into the massive import of new battery electric vehicles, designed for the transportation of people, classified in the HS code 8703 80 10 and originating in the People’s Republic of China (coming directly or indirectly from this country).
The investigation aims to elucidate the possible subsidies granted by the Government of China (or private organizations controlled by the Government of China) in the manufacture and international sale (export) of electric cars destined, in this case, for the EU.
The subsidies investigated consist of: a) direct transfer of funds, b) forgiveness of public revenues and c) public provision of goods or services for less than adequate remuneration.
Officially, through Regulation 2024/785, of March 5, 2024, the European Commission reported on the investigation of the anti-subsidy procedure and ordered the customs offices of the Member States to register the imports of the aforementioned cars, classified under the HS code 8703 80 10 and originating in China, until the completion of the investigation, that is, until December 7, 2024.
The above means that, since March 6, 2024, imports of Chinese electric cars are being registered in each Member State to be subject to a countervailing duty (anti-subsidy tariff duty) once the Commission’s investigation has concluded.
The results of the provisional investigation show provisional countervailing duties (calculated on the benefit of the alleged subsidy) of 17.4% to 38.1% (on the customs value), depending on the manufacturer/exporter investigated individually. These percentages will be provisional and may be modified during the course of the investigation, reaching final status once the investigation has concluded.
Compensatory measures, regulated by the World Trade Organization for all its members (of which China has been a member since 2001), are provided for those cases in which a considerable increase in imports under unfair conditions causes (or threatens to cause) a damage to the national industry. They will take the form of price discrimination (antidumping) or a subsidy, depending on the proven unfair condition and, generally, are valid for 5 years from their definitive imposition.
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