China is distorting competition for cheap electric cars with subsidies, says the EU Commission. It is threatening high countervailing duties. As has now become known, however, nothing has to be paid for the time being.
The EU will not impose any provisional additional tariffs on Chinese electric cars. It was actually planned that in certain cases high countervailing tariffs of up to 37.6 percent would be paid retroactively because, according to the EU, electric cars from China benefit from subsidies that distort competition and the EU industry is therefore at risk of damage. According to the EU Commission, Chinese electric cars are normally around 20 percent cheaper than models manufactured in the Union. However, as the Commission has now announced, the legal requirements for the retroactive imposition of tariffs are not met.
Maximum rate of 36.6 percent additional tariff
The authority also announced that the tariff rates had been slightly adjusted. In most cases, they were reduced slightly. Specifically, a provisional punitive tariff of 17.4 percent was to apply to the manufacturer BYD, 19.9 percent to Geely and 37.6 percent to SAIC. These rates have now been reduced to 17.0 percent, 19.3 percent and 36.3 percent. Tesla will therefore receive an individual tariff rate of nine percent. Companies that cooperate with the EU will be charged 21.3 percent (originally 20.8), while uncooperative companies will be charged the maximum rate of 36.3 percent.
Geely produces, among other things, the electric Smart models #1 and #3 as well as the Volvo EX30. SAIC builds the MG4, which is popular in Germany and came second among electric cars in the registration statistics from Flensburg in May, just behind the VW ID.3.
Final decision still pending
The decision as to whether punitive tariffs will actually have to be paid at some point is to be announced by the end of October. However, the Commission must put this decision to a vote among the 27 EU states. If a majority votes against it, it cannot introduce the countervailing tariffs. There is also hope that a diplomatic solution can be found with Beijing.
Car manufacturers and other affected parties now have the opportunity to request hearings with the Commission and submit their comments within ten days. The Commission will examine these and then submit its proposal for a final decision to the Member States.
Source: Stern
