The European Commission decided, after several months of investigation and negotiations with the Chinese side, to introduce customs duties on the import of electric vehicles manufactured in China. This decision was made despite great pressure from some large European vehicle manufacturers who believe that “entering into a customs war will be disastrous for their business and the placement of cars on the Chinese market”.
Cthe rules, which actually came into force on October 31, are being introduced for a period of five years.
In the explanation of the European Commission’s decision, it is stated that the investigation established that Chinese producers have an advantage over European ones due to state subsidies. Additional customs duties ranging from 7.8 to 35.3 percent are now being introduced to the previous customs rates of 10 percent.
The additional customs duty will be 7.8% on the vehicles of the American manufacturer Tesla produced in China, and 17% for the Chinese manufacturers BYD, 18.8%, Geely, 18.8% and SAIC, 35.3%.
An additional customs rate of 35.3 percent will also apply to all other manufacturers in China who did not want to cooperate in the investigation, and for companies that cooperated it will be 20.7 percent.
In its statement, the European Commission states that “in parallel, it will continue working with China to find alternative solutions, compatible with the rules of the World Trade Organization, and remains open to negotiations on price obligations with individual exporters.”
It is interesting that the final decision on the introduction of additional customs duties was adopted only after, at the beginning of this month, the proposal did not receive the necessary qualified majority, i.e. the votes of at least 15 member states in which at least 65 percent of the EU population lives.
10 members were in favor of the Commission’s proposal, 12 abstained, and five were against, including Germany.
As a rule, when there is no qualified majority neither for nor against the proposal, the EU executive body could independently make a binding decision. The EC investigation showed that Chinese manufacturers have numerous benefits – “preferential financing and grants, land, batteries and raw materials at below-market prices.”
The Chinese response is awaited.
Source: Serbian Association of Importers of Vehicles and Parts
Photo: Arhiva Autoblog.rs / Zeekr
Source: autoblog.rs
