The European Commission provided guidance for Chinese EV exporters to avoid EU anti-subsidy duties by offering price undertakings based on minimum import prices. The document outlines the framework for submitting offers and emphasizes compliance with legal standards and WTO rules. The decision on imposing countervailing duties on BEVs imported from China concluded the anti-subsidy investigation.

The EU and China have explored WTO-compatible options, including price undertakings, through discussions with China’s Ministry of Commerce. The guidance explains that minimum import prices could be determined by adjusting historical costs or referencing sales prices of non-subsidized EU-produced BEVs. Chinese exporters may submit offers individually or jointly, with simpler arrangements being easier to monitor.

The China Chamber of Commerce to the EU stated that the outcome of consultations on electric vehicles supports trade stability and boosts market confidence. Commitments related to future EU investments included in undertakings must be clearly defined and verifiable to avoid duties. The Commission will assess formal price undertaking offers through consultations with interested parties.

Failure to comply with commitments could lead to the withdrawal of the undertaking and retroactive duty collection. The final decision on accepting or rejecting the offer will be made through an implementing decision, subject to a vote by EU member states. The guidance aims to provide a stable environment for Chinese electric vehicle manufacturers and deepen cooperation between China and the EU in various areas.

Read more at Yahoo Finance: EU guidance sets price undertaking route for Chinese EV imports