Impact of the Update of Japans Chemical Substances Control Law on the Customs Clearance of Chemical Substances | Shanghai Import/Export Agent

Detailed Tax Rates

Based on the investigation results, the European Commission determined different subsidy rates for various companies:

BYD Group

1. : Countervailing duty rate of 17.4%. Includes BYD Auto Industry Co., Ltd. and its affiliates, such as Changsha BYD Auto Co., Ltd., Changzhou BYD Auto Co., Ltd., etc.Geely Group
2. : Countervailing duty rate of 19.9%. Involves multiple companies under Geely Group, such as Asia-Europe Automobile Manufacturing (Taizhou) Co., Ltd., Chongqing Lifan Passenger Vehicle Co., Ltd., Zhejiang Geely Automobile Co., Ltd., etc.SAIC Group
3. : The highest countervailing duty rate of 37.6%. Covers SAIC Group and its subsidiaries, such as SAIC Volkswagen Automotive Co., Ltd., SAIC-GM-Wuling Automobile Co., Ltd., etc.Other Cooperating Companies
4. : Countervailing duty rate of 20.8%, applicable to cooperating companies not individually listed.All Other Companies
5. : Countervailing duty rate of 37.6%, applicable to companies not on the cooperating companies list.Group

Investigation Background and Timeline

This investigation commenced on October 4, 2023, with the European Commission initiating an anti-subsidy probe into battery electric passenger vehicles originating from China under its own investigation procedures. The subsidy investigation period covers October 1, 2022 to September 30, 2023, while the injury investigation period spans from January 1, 2020 to the end of the subsidy investigation period. The measures take effect the day after the announcement and remain valid for four months.

Products Involved and Customs Codes

The products involved in this preliminary ruling are battery electric passenger vehicles, classified under EU CN (Combined Nomenclature) code 8703 80 10, with TARIC code 8703 80 10 10.

Future Steps

Following the preliminary ruling announcement, the European Commission will continue further investigation and verification of these subsidy practices, with a final determination expected in the coming months. If the final ruling upholds the preliminary results, these provisional countervailing duties may be converted into definitive measures.

Impact

This preliminary ruling may significantly impact Chinese EV manufacturers exports, increasing their operational costs in the EU market.

EU-China competition in the EV market will consequently become more complex, requiring relevant enterprises to closely monitor policy changes and adjust their market strategies to adapt to the new trade environment.

Original announcement PDF:https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202401866