Posted on 07 Mar 2024
The European Commission has instructed customs authorities in the bloc to register Chinese BEV imports, as a potential measure to apply retroactive tariffs on what it calls subsidised vehicles.
In a document published on Tuesday, the EC says it has seen “sufficient evidence” tending to show that imports of BEVs from China are benefitting from countervailable subsidies. These comprise direct transfer of funds; revenue forgone or not collected by the government; and government provision of goods or services for less than adequate remuneration, the document seen by Kallanish states.
Authorities in Brussels launched a formal investigation on anti-subsidies on China-imported BEVs last October. Although the probe is ongoing and expected to conclude by November, potential provisional duties could be applied from July.
“At this stage of the investigation, it is not yet possible to accurately estimate the amount of subsidisation. Thus, the Commission does not find it appropriate to provide an estimated amount of future liability,” according to the regulation implementation notice.
Yet, the EC says that evidence collected to date “shows critical circumstances in the form of massive imports in a relatively short period, as well as a substantial increase of imports … in the period from October 2023 to January 2024.”
The monthly average for BEV imports from China into the bloc increased 14% on-year during the period of investigation to 44,460 units. Before the probe was launched, imports rose by an average of 11%. A total of 177,839 BEVs were imported from China to the EU, from October 2023 till January 2024.
Officials indicate the “damage” to the local automotive industry started to materialise even before the end of the investigation, and if not addressed, could negatively affect European producers’ performance and EU jobs. They say such an outcome would be difficult to repair.
The EC is now inviting public feedback in writing and backed by evidence. However, it did not say when such consultation would finish.
Disappointed by the measure, China Chamber of Commerce to the EU said that the increase in imports reflected rising European demand for electric vehicles.
EVs imported from China into the EU are subject to a 10% import duty.
Source:Kallanish
