EU Tariffs on Chinese EVs: BYD, Geely, SAIC Rates

On July 4,2024,the European Commission issued a notice announcing its preliminary anti-subsidy ruling on pure electric passenger cars (New Battery Electric Vehicles for the Transport of Persons) originating from China.According to the preliminary ruling,the EU will impose a temporary anti-subsidy tax of 17.4% to 37.6% on these products involved in the case.

Based on the investigation results,the European Commission determined different subsidy rates for various companies:

BYD Group

• :Countervailingdutyrateof17.4%.IncludesBYDAutoIndustryCo.Ltd.anditsaffiliates,suchasChangshaBYDAutoCo.Ltd.ChangzhouBYDAutoCo.Ltd.etc.:GeelyGroup
• :Countervailingdutyrateof19.9%.InvolvesmultiplecompaniesunderGeelyGroup,suchasAsia-EuropeAutomobileManufacturing(Taizhou)Co.Ltd.ChongqingLifanPassengerVehicleCo.Ltd.ZhejiangGeelyAutomobileCo.Ltd.etc.:SAICGroup
• :Thehighestcountervailingdutyrateof37.6%.CoversSAICGroupanditssubsidiaries,suchasSAICVolkswagenAutomotiveCo.Ltd.SAIC-GM-WulingAutomobileCo.Ltd.etc.:OtherCooperatingCompanies
• :Countervailingdutyrateof20.8%,applicabletocooperatingcompaniesnotindividuallylisted.:AllOtherCompanies
• :Countervailingdutyrateof37.6%,applicabletocompaniesnotonthecooperatingcompanieslist.:Group

Investigation Background and Timeline

This investigation commenced on October 4,2023,with the European Commission initiating an anti-subsidy probe into battery electric passenger vehicles originating from China under its own investigation procedures.The subsidy investigation period covers October 1,2022 to September 30,2023,while the injury investigation period spans from January 1,2020 to the end of the subsidy investigation period.The measures take effect the day after the announcement and remain valid for four months.

Products Involved and Customs Codes

The products involved in this preliminary ruling are battery electric passenger vehicles,classified under EU CN (Combined Nomenclature) code 8703 80 10,with TARIC code 8703 80 10 10.

Future Steps

Output:

Following the preliminary ruling announcement,the European Commission will continue further investigation and verification of these subsidy practices,with a final determination expected in the coming months.If the final ruling upholds the preliminary results,these provisional countervailing duties may be converted into definitive measures.

Impact

Output:

This preliminary ruling may significantly impact Chinese EV manufacturers exports,increasing their operational costs in the EU market.

EU-China competition in the EV market will consequently become more complex,requiring relevant enterprises to closely monitor policy changes and adjust their market strategies to adapt to the new trade environment.

Original announcement PDF: