Commission Implementing Regulation (EU) 2024/2754 of 29 October 2024 imposing a d... (32024R2754)
Commission Implementing Regulation (EU) 2024/2754 of 29 October 2024 imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China
- COMMISSION IMPLEMENTING REGULATION (EU) 2024/2754
- of 29 October 2024
- imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China
- 1.
- PROCEDURE
- 1.1.
- Initiation
- 1.2.
- Registration
- 1.3.
- Provisional measures
- 1.4.
- Subsequent procedure
- 1.5.
- Sampling
- 1.5.1.
- Sampling of Union producers
- 1.5.2.
- Sampling of importers
- 1.5.3.
- Sampling of exporting producers in the PRC
- 1.6.
- Individual examination
- 1.7.
- Claims on procedural issues and rights of defence
- 2.
- PRODUCT UNDER INVESTIGATION, PRODUCT CONCERNED AND LIKE PRODUCT
- 2.1.
- Product under investigation
- 3.
- SUBSIDISATION
- 3.1.
- Introduction: Presentation of Government plans, projects and other documents
- 3.2.
- Government plans and policies to support the BEV industry
- 3.3.
- Partial non-cooperation and use of facts available
- 3.3.1.
- Application of the provisions of Article 28(1) of the basic Regulation in relation to the GOC
- 3.3.1.1.
- Application of the provisions of Article 28(1) of the basic Regulation in relation to preferential lending
- 3.3.1.2.
- Application of the provisions of Article 28(1) of the basic Regulation in relation to input materials
- 3.3.1.3.
- Application of the provisions of Article 28(1) of the basic Regulation in relation to the Fiscal Subsidy Policy for the Promotion and Application of New Energy Vehicles
- 3.3.1.4.
- Application of the provisions of Article 28(1) of the basic Regulation in relation to the grants/other subsidy programmes including state/regional/local government schemes
- 3.3.1.5.
- Application of the provisions of Article 28(1) of the basic Regulation in relation to the purchase tax exemption scheme
- 3.3.2.
- Application of the provisions of Article 28(1) of the basic Regulation concerning the SAIC Group
- 3.3.2.1.
- SAIC Group’s allegation that legal standards for applying Article 28 of the basic Regulation were not fulfilled
- 3.3.2.2.
- Requests for information concerning related suppliers
- 3.3.2.3.
- Information not provided by the SAIC Group and other undisclosed documents before and during on-spot verification visits
- 3.3.3.
- Application of the provisions of Article 28(1) of the basic Regulation concerning the Geely Group
- 3.3.4.
- Application of the provisions of Article 28(1) of the basic Regulation concerning the BYD Group
- 3.3.5.
- Comments submitted by the GOC on the intended application of Article 28 to the sampled exporting producers
- 3.4.
- Subsidies and subsidy programmes for which the Commission makes findings in the current investigation
- 3.4.1.
- General
- 3.5.
- Preferential financing
- 3.5.1.
- Financial institutions providing preferential financing
- 3.5.1.1.
- State-owned financial institutions acting as public bodies
- 3.5.1.2.
- Private financial institutions entrusted or directed by the GOC
- 3.5.1.3.
- Credit ratings
- 3.5.2.
- Preferential financing: loans
- 3.5.2.1.
- Types of loans
- (a) Loans in foreign currencies
- (b) Loans in CNY
- (c) Interbank loans
- 3.5.2.2.
- Specificity
- 3.5.2.3.
- Calculation of the subsidy amount
- 3.5.2.4.
- Conclusion on preferential financing: loans
- 3.5.3.
- Preferential financing: other types of financing
- 3.5.3.1.
- Credit lines
- (a) General
- (b) Findings of the investigation
- (c) Specificity
- (d) Calculation of the subsidy amount
- 3.5.3.2.
- Bank acceptance drafts
- (a) General
- (b) Specificity
- (c) Calculation of the subsidy amount
- 3.5.3.3.
- Discounted bills
- (a) General
- (b) Specificity
- (c) Calculation of the subsidy amount
- 3.5.3.4.
- Support for capital investment
- 3.5.3.4.1. Debt-to-equity swap
- (a) General
- (b) Specificity
- (c) Calculation of the benefit
- 3.5.3.4.2. Capital injections
- (a) General
- (b) Geely Group
- (c) SAIC Group
- 3.5.4.
- Bonds
- 3.5.4.1.
- General comments
- 3.5.4.2.
- Financial institutions acting as public bodies
- 3.5.4.3.
- Specificity
- 3.5.4.4.
- Calculation of the subsidy amount
- 3.5.4.5.
- Conclusion on preferential financing: other types of financing
- 3.6.
- Grant Programmes
- 3.6.1.
- Direct cash grants
- (a) General comments
- (b) Calculation of the subsidy amount
- 3.6.2.
- Fiscal Subsidy Policy for the Promotion and Application of New Energy Vehicles
- (a) General comments
- (b) Calculation of the subsidy amount
- 3.7.
- Government provision of goods and services for less than adequate remuneration (‘LTAR’)
- 3.7.1.
- Government provision of land use rights for less than adequate remuneration
- (a) Legal basis
- (b) Findings of the investigation
- (c) Conclusion
- (d) Calculation of the subsidy amount
- 3.7.2.
- Government provision of batteries and key inputs for the production of batteries (namely lithium iron phosphate) for less than adequate remuneration
- (a) Introduction
- (b) Non-cooperation and use of facts available
- 3.7.2.1.
- Government provision of batteries for less than adequate remuneration
- 3.7.2.1.1. Financial contribution
- (a) Battery suppliers acting as ‘public bodies’
- (b) Battery suppliers acting as private bodies entrusted or directed by the GOC
- 3.7.2.1.2. Benefit, specificity and calculation of the subsidy amount
- (a) Benefit
- (b) Specificity
- (c) Calculation of the subsidy amount
- 3.7.2.2.
- Government provision of LFP for less than adequate remuneration
- 3.7.2.2.1. Financial contribution
- (a) LFP suppliers acting as ‘public bodies’
- (b) LFP producers acting as private bodies entrusted with functions or directed by the GOC
- 3.7.2.2.2. Benefit, specificity and calculation of the subsidy amount
- 3.8.
- Revenue foregone through tax exemption and reduction programmes
- 3.8.1.
- Enterprise Income Tax (‘EIT’) reduction for High and New Technology Enterprises
- (a) Legal basis, financial contribution, and benefit
- (b) Specificity
- (c) Calculation of the subsidy amount
- 3.8.2.
- Preferential pre-tax deduction of research and development expenses
- (a) Legal basis
- (b) Findings of the investigation
- (c) Benefit
- (d) Specificity
- (e) Calculation of the subsidy amount
- 3.8.3.
- Dividends exemption between qualified resident enterprises
- (a) Legal basis
- (b) Findings of the investigation
- (c) Benefit
- (d) Specificity
- (e) Calculation of the subsidy amount
- 3.8.4.
- Accelerated depreciation of equipment used by High-Tech enterprises
- 3.8.5.
- Technology transfer revenue deduction
- (a) Legal basis, findings of the investigation, and benefit
- (b) Specificity
- (c) Calculation of the subsidy amount
- 3.8.6.
- Battery consumption tax exemption
- (a) Legal basis
- (b) Findings of the investigation
- (c) Benefit
- (d) Specificity
- (e) Calculation of the subsidy amount
- 3.8.7.
- Enterprise Income Tax (‘EIT’) reduction for key industries
- (a) Legal basis
- (b) Findings of the investigation
- (c) Benefit
- (d) Specificity
- (e) Calculation of the subsidy amount
- 3.8.8.
- Subsidisation as regards non-cooperating companies (SAIC Group)
- 3.9.
- Other schemes
- 3.10.
- Conclusion on subsidisation
- 3.10.1.
- Allocation method
- 3.10.2.
- Duty applicable to other cooperating companies
- 3.10.3.
- Calculation of subsidy rates
- 4.
- INJURY
- 4.1.
- Definition of the Union industry and Union production
- 4.2.
- Determination of the relevant Union market
- 4.3.
- Union consumption
- 4.4.
- Imports from the country concerned
- 4.4.1.
- Volume and market share of the imports from the country concerned
- 4.4.2.
- Prices of the imports from the country concerned, price undercutting and price suppression
- 4.5.
- Economic situation of the Union industry
- 4.5.1.
- General remarks
- 4.5.2.
- Macroeconomic indicators
- 4.5.2.1.
- Production, production capacity and capacity utilisation
- 4.5.2.2.
- Sales volume and market share
- 4.5.2.3.
- Growth
- 4.5.2.4.
- Employment and productivity
- 4.5.2.5.
- Magnitude of the subsidy amount and recovery from past subsidisation
- 4.5.3.
- Microeconomic indicators
- 4.5.3.1.
- Prices and factors affecting prices
- 4.5.3.2.
- Labour costs
- 4.5.3.3.
- Inventories
- 4.5.3.4.
- Profitability, cash flow, investments, return on investments and ability to raise capital
- 4.5.4.
- Developments in the investigation period and in the post-investigation period
- 4.5.5.
- Conclusion on the situation of the industry
- 5.
- THREAT OF INJURY
- 5.1.
- Introduction
- 5.2.
- Definitive assessment
- 5.2.1.
- Update of post-IP data of Chinese imports
- 5.2.2.
- Other elements: profitability and other economic indicators
- 5.3.
- Interested parties’ comments after provisional measures
- 5.3.1.
- The nature of the subsidy or subsidies in question and the trade effects likely to arise therefrom
- 5.3.2.
- Significant rate of increase of subsidised imports into the Union market indicating the likelihood of substantially increased imports
- 5.3.3.
- Sufficient freely disposable capacity and absorption capacity of third country markets
- (a) Capacity, spare capacity and production in China
- (b) Demand in China
- (c) Exports of China and availability of other exports markets
- (d) Conclusion
- 5.3.4.
- Price level of subsidised imports
- 5.3.5.
- Level of inventories
- 5.3.6.
- Foreseeability and imminence of the change in circumstances
- 5.3.7.
- Other comments
- 5.4.
- Conclusion
- 6.
- CAUSATION
- 6.1.
- Assessment
- 6.2.
- Interested parties’ comments following provisional and definitive disclosures
- 6.2.1.
- Effects of the subsidised imports
- 6.2.2.
- Other factors
- 6.2.2.1.
- Imports from third countries
- 6.2.2.2.
- Competitiveness of the Union BEV industry
- 6.2.2.3.
- Imports from China by the Union industry
- 6.2.2.4.
- Intra-Union industry competition
- 6.2.2.5.
- Overregulation
- 6.2.2.6.
- Industry in transition
- 6.2.2.7.
- Overcapacity of the Union industry
- 6.2.2.8.
- Investment decisions of the Union BEVs industry
- 6.3.
- Conclusion
- 7.
- UNION INTEREST
- 7.1.
- Interest of the Union industry
- 7.2.
- Interest of unrelated importers
- 7.3.
- Interest of users
- 7.4.
- Interest of suppliers
- 7.5.
- Impact on consumers
- 7.6.
- Effects on climate objectives
- 7.7.
- Risk of retaliation
- 7.8.
- Government incentives in the Union
- 7.9.
- Protectionism
- 7.10.
- Lesser duty rule and level of the duties
- 7.11.
- Alternative solutions
- 7.12.
- Conclusion on Union interest
- 8.
- DEFINITIVE COUNTERVAILING MEASURES
- 8.1.
- Definitive measures
- 8.2.
- Release of the provisional duties
- 8.3.
- Retroactive imposition of countervailing duties
- 8.4.
- Undertakings
- 8.4.1.
- CCCME
- 8.4.2.
- Alternative undertaking offers
- 8.4.2.1.
- SAIC Group
- 8.4.2.2.
- SMART
- 8.4.2.3.
- Volvo Car Asia Pacific Investment Holding Co.
- 8.4.2.3.1. Offer 1: Volvo Car Asia Pacific Investment Holding Co.
- 8.4.2.3.2. Offer 2: Volvo Car Asia Pacific Investment Holding Co
- —
- Offer 1
- —
- Offer 2
- 8.4.2.4.
- Conclusion on price undertaking offers
- 8.5.
- Suspension of the measures
- 8.6.
- Duration of the measures
- 9.
- FINAL PROVISIONS
- Article 1
- Article 2
- Article 3
- ANNEX
- COOPERATING CHINESE EXPORTING PRODUCERS NOT SAMPLED
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