On 12 June 2024, the European Commission proposed provisional countervailing duties for imports into the European Union (“EU“) of new battery electric vehicles designed for the transport of persons (“EVs“) originating from the People’s Republic of China. The pre-disclosure of the European Commission’s proposal is published here. This pre-disclosure follows from the anti-subsidy investigation concerning EVs from the People’s Republic of China. Find our previous blogpost on that investigation here.

The products in the scope of the measures are EVs and electric motorcycles designed for the transport of nine or fewer persons classified under code 8703 80 10 of the Combined Nomenclature of the EU. The EVs are subject to registration upon import into the EU according to the Commission Implementing Regulation (EU) 2024/785.

The provisional duties differ per exporting producer from 17,4% to 38,1%. The rates of the provisional countervailing duties the individual exporting producers can be found on the website of the European Commission through this link.

Next steps:

  • The European Commission has reached out to the Chinese authorities to discuss the findings from the anti-subsidy investigation.
  • If the issues identified are not resolved by these discussions with the Chinese authorities, the provisional duties will apply for imports from 4 July 2024 onwards.
  • The duties will be collected when the countervailing duties are definitively imposed. Definitive measures must be imposed within 4 months after imposition of the provisional duties.
  • The decision to levy countervailing duties on the registered imports (between 6 March and 4 July 2024) will be taken with the final decision to impose definitive countervailing duties.  
Author

Lionel has joined Baker McKenzie as Customs Lead in February 2022. Lionel has 20+ years of experience in the field of Customs, International Trade, Excises & Energy Levy.

Author

Arnoud Willems is a partner in the International Commercial & Trade Practice Group in the Brussels office. He joined Baker McKenzie in 2022. He has an extensive network, built over 25 years as a trusted advisor of entrepreneurs, executives, and diplomats. Arnoud has a deep understanding of how trade rules shape global flows of capital, investment, goods, technology, and services.

Author

Jaap Huenges Wajer is a senior associate in the Indirect Tax Team in Baker McKenzie’s Amsterdam office. His practice is focused on advising national and international companies in all value added tax, customs and excise duty related matters. More specific, the emphasis for his advising role regards structuring of international sale and supply chains, optimizing inbound transactions in respect to customs, the litigation in value added tax, customs and excise duty matters. He advises clients across a number of sectors including pharmaceuticals, technology, manufacturing, energy and consumer goods.

Author

Author

Esmee Kooke is a Junior Associate within the Amsterdam Indirect Tax team. She joined the Firm in September 2023.

Author

Frits Pasch is a Junior Associate within Amsterdam Indirect Tax team. He joined the firm in January 2021.