Global Daily Tax News, EU Announces Taxes On Chinese Electric Vehicles, (Jun 14, 2024)

The European Union has announced it is considering the introduction of taxes on Chinese battery electric vehicle (BEV) exports.

The Commission announced June 12, 2024, that it had provisionally concluded that the BEV value chain in China benefits from unfair subsidization that "is causing a threat of economic injury to EU BEV producers."

The Commission said it has contacted Chinese authorities to discuss the findings and identify possible ways to resolve the issues in a WTO-compatible manner.

Specific duties would be introduced on three manufacturers: 17.4 percent on BYD; 20 percent on Geely; and 38.1 percent on SAIC.

Other BEV producers in China that cooperated with the investigation would be subject to a duty rate of 21 percent, while those that did not would be subject to a 38.1 percent rate.

The Commission has said the duties will apply from July 4, 2024, with collection of the taxes to deferred until a later time when definitive duties are imposed.