EU plans to impose provisional duties on Chinese EVs, ranging from 17.4% to 38.1%.

From Investing.com: 2024-06-21 07:26:57

The European Commission plans to impose provisional duties on Chinese electric vehicles ranging from 17.4% to 38.1%, in addition to the standard 10% tariff for car imports, set to begin by July 4.

Provisional measures can last up to four months, to prevent injury to EU industry. Interested parties can comment on the findings by July 18, with a final decision on definitive duties due by Nov. 3.

Tesla has requested a separate duty rate, challenging the 21% rate for cooperators. Alternatives to duties include committing to a minimum price, but this may be challenging for cars.

The Commission has full power to impose duties during the provisional stage, with EU members submitting their positions by July 15. Definitive duties, if proposed, would last five years.

At the conclusion of the investigation, any company not in the sample group can request an “accelerated review” for their own individual duty. An “interim review” can also be carried out after a year if necessary.

The Commission is vigilant about circumvention of duties through parts exports for assembly elsewhere. Companies can challenge the measures at the European Court of Justice, and China can take the EU to the World Trade Organization. Both paths can be lengthy, lasting over a year.



Read more at Investing.com: Explainer-What happens next in the EU investigation into Chinese EVs? By Reuters