Brussels drafts final decision to impose up to 36.3% duties on Chinese EV imports

The European Commission (EC) has issued a draft decision to impose definitive countervailing duties of up to 36.3% on imports of battery electric vehicles (EVs) from China.

These draft rates are lower than the provisional duties that were announced on July 4 and implemented on July 5, according to the Commission's statement on August 20.

The EC also noted that definitive measures must be established within four months of the provisional duties' imposition, with final findings to be published no later than October 30, 2024.

Tesla, has received a reduced individual duty rate of 9%, down from the provisional rate of 20.8%, as it was classified as a Chinese exporter at this stage.

Once finalised, the duties will remain in effect for five years.

In response to the EC’s decision, China’s Ministry of Commerce criticised the ruling, arguing that it discriminates between different types of Chinese companies, thereby skewing the investigation results.

"The final ruling was based on the 'facts' unilaterally identified by the EU, rather than mutually recognised evidence. China firmly opposes this and is deeply concerned," the ministry stated.

The China Association of Automotive Manufacturers (CAAM) also expressed strong opposition, claiming that the European Commission had "seriously distorted the facts" about China’s EV industry.

The association warned that these duties pose significant risks and uncertainties for Chinese companies operating and investing in the EU, undermine business confidence, and could negatively impact the EU's own EV industry development.

Commenting, Owen Edwards. automotive expert at Grant Thornton, said: "Any potential measures will be in force for the next 5 years. Little has changed to the tariffs except for Tesla where the EU believes the company has not has such large levels of support than other brands in China.   

"What will be more interesting is how quickly Chinese brands start to set up factories in the EU thus avoiding where possible the importation tariffs BEVs. Currently, it is not clear what position the UK is taking, whether it follows the EU or sits to one side."

Interested parties have to provide comments in the next 10 days and request a possible hearing if required before definitive findings will be published by October 30.