Definitive countervailing duties have applied to certain new battery electric vehicles originating in China since 30 October 2024. Implementing Regulation (EU) 2024/2754 does not simply replace the provisional measures with one uniform rate: the actual producer, its corporate group, the TARIC additional code and a compliant commercial invoice are decisive.
Position covered: 30 October 2024. Implementing Regulation (EU) 2024/2754 was published on 29 October 2024 and entered into force on the following day.
The product scope requires precise classification
The measure covers new battery electric vehicles originating in China that are principally designed to carry no more than nine persons including the driver. They must be propelled solely by one or more electric motors; an internal-combustion range extender is included. Category L vehicles and motorcycles are excluded. The Regulation currently refers to CN code ex 8703 80 10 and TARIC code 8703 80 10 10.
Brand, country of sale and the importer's seat are therefore not decisive. Customs classification and origin govern the measure. A vehicle bearing a European or US brand can also be covered if it was produced by the relevant manufacturer in China and has Chinese origin. Product classification and origin should be checked against the supply chain before contracting and again before the customs declaration.
The definitive rates depend on the producer
The Regulation sets the following countervailing duties for the investigated groups: BYD 17.0 per cent, Geely 18.8 per cent and SAIC 35.3 per cent. Tesla (Shanghai) has an individually determined rate of 7.8 per cent. Other cooperating companies listed in the Annex are subject to 20.7 per cent; all other companies are subject to 35.3 per cent.
The countervailing duties are added to the ordinary import duty of 10 per cent. The countervailing duty is calculated on the net free-at-Union-frontier price before duty. Costing and contracts should therefore distinguish the purchase price, freight and insurance to the Union frontier, ordinary customs duty, countervailing duty and import VAT.
A lower rate requires evidence of the producer and a compliant invoice
Company-specific rates apply only to vehicles manufactured by the legal entities named in the Regulation. Customs must also receive a valid commercial invoice bearing the prescribed dated and signed declaration and the correct TARIC additional code. If that invoice is not presented, the rate for all other companies applies.
Import and supply agreements should therefore specify the producer's legal identity, Chinese origin, TARIC additional code, invoice content and cooperation in customs inspections. They should also allocate additional costs arising from a different classification, an incorrect origin declaration or a missing statement, and address information, audit, indemnity and price-adjustment rights. A brand name alone does not establish entitlement to an individual rate.
Provisional security is released while discussions continue
The amounts secured under Implementing Regulation (EU) 2024/1866 for the provisional countervailing duties are definitively released and will not be collected. Definitive duties, by contrast, are collected on imports from entry into force. Import transactions must therefore be separated according to the relevant date and customs declaration.
The Commission is continuing consultations on effective and enforceable price undertakings. A possible agreement does not alter the duty in force until it has been accepted and implemented under the applicable rules. Businesses should calculate on the basis of the existing rates and make contractual adjustments conditional on a demonstrable change in law or a price undertaking effective for the exporter.
Review points for importers and supply chains
- Check product characteristics, CN/TARIC classification and Chinese origin.
- Identify the actual producer, corporate group and individual additional code.
- Verify the required invoice declaration before submitting the customs declaration.
- Calculate purchase price, ordinary customs duty, countervailing duty and import VAT separately.
- Update contracts on additional duty costs, evidence, inspections and price changes.
Related insights
- EU duties on Chinese BEVs: consequences for importers
- CSDDD in force: dates and duties for automotive supply chains
Official sources
- Implementing Regulation (EU) 2024/2754 imposing definitive countervailing duties on Chinese BEVs
- European Commission press release of 29 October 2024
- European Commission questions and answers on the definitive findings
- Regulation (EU) 2016/1037 on protection against subsidised imports
This article explains the legal position on 30 October 2024. The particular customs treatment depends especially on product characteristics, origin, producer, additional code, documents and the date of the customs declaration.