Commission Implementing Regulation (EU) 2024/1866 of 3 July 2024 imposing a provi... (32024R1866)
Commission Implementing Regulation (EU) 2024/1866 of 3 July 2024 imposing a provisional 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) 2024/1866
- of 3 July 2024
- imposing a provisional 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.
- Investigation period and period considered
- 1.4.
- Interested parties
- 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
- 1.5.4.
- Questionnaire replies and verification visits
- 1.5.5.
- Claims regarding transparency and procedure
- 1.5.6.
- Comments on initiation
- 1.6.
- Individual examination
- 2.
- PRODUCT UNDER INVESTIGATION, PRODUCT CONCERNED AND LIKE PRODUCT
- 2.1.
- Product under investigation
- 2.2.
- Product concerned
- 2.3.
- Like product
- 2.4.
- Comments on product scope
- 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.
- 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
- (a)
- Bill of Material (BOM) finished products and supply product specifications (e.g. chemistry, composition, etc.).
- (b)
- Transaction by Transaction (T-by-T) purchase listing for parts and components (account ledger)
- (c)
- Purchase framework agreement (full version) for parts and components suppliers listed in Table E-3-3 (a/b)
- (d)
- T-by-T sales listing (2020-IP) identifying sales value, sales volume, date, model, item number, short code, VIN, customer name, retail price, selling price, net price, net price excluding VAT, quantity, related / unrelated, PUI / non PUI
- (e)
- Joint venture agreements
- (f)
- Investment plans, approval, investment monitoring and feasibility studies 2020-2023 and sales forecasts
- (g)
- Documents relating to forecast report for “NEV credits” (see Art. 18 of Corporate average fuel consumption of passenger cars and new energy vehicles Parallel management of points)
- (h)
- Bank authorizations, credit lines.
- (i)
- Grant programs
- (j)
- Land Use Rights (‘LURs’)
- (k)
- Bonds and intercompany financing
- (l)
- R&D Deduction Tax Agent report
- 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
- 3.5.
- 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.
- Partially cooperating State-owned financial institutions
- 3.5.1.3.
- Core characteristics and functions of State-owned banks
- 3.5.1.4.
- Ownership, formal indicia and exercise of control by the GOC
- 3.5.1.5.
- Meaningful control by the GOC
- 3.5.1.6.
- Conclusion on cooperating State-owned financial institutions
- 3.5.1.7.
- Non-cooperating State-owned financial institutions
- 3.5.1.8.
- Conclusion on all State-owned financial institutions
- 3.5.1.9.
- Private financial institutions entrusted or directed by the GOC
- 3.5.1.10.
- Credit ratings
- 3.5.2.
- Preferential financing: loans
- 3.5.2.1.
- Types of loans
- (1) Short-term and long-term loans
- (2) Loans with the specific purpose to replace other loans (revolving loans)
- (3) Financing with the aim to restructure long term debt
- 3.5.2.2.
- Specificity
- 3.5.2.3.
- Calculation of the subsidy amount
- (1) BYD Group
- (2) Geely Group
- (3) SAIC Group
- 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 draft
- (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) Geely
- Group
- (1)
- General
- (2)
- Specificity
- (3)
- Calculation of the benefit
- (b) SAIC Group
- (1)
- Findings of the investigation
- (2)
- Benefit
- (3)
- Specificity
- (4)
- Calculation of the subsidy amount
- 3.5.4.
- Bonds
- 3.5.4.1.
- Legal basis/Regulatory Framework
- 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)
- Legal basis
- (b)
- Findings
- (c)
- Conclusion
- (d)
- Calculation of the subsidy amount
- 3.6.2.
- Fiscal Subsidy Policy for the Promotion and Application of New Energy Vehicles
- (a)
- Legal basis
- (b)
- Findings of the investigation
- (c)
- Benefit
- (d)
- Specificity
- (e)
- Conclusion
- (f)
- 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/Regulatory Framework
- (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’
- (1)
- Legal and economic environment prevailing in the PRC
- (2)
- GOC’s policy objectives to develop the BEV industry
- (3)
- Specific measures adopted by the GOC pursuing its policy objectives to develop the BEV industry
- (a)
- Public support to the industry of battery producers and their inputs
- (b)
- GOC’s measures on pricing of batteries and on cost reductions for the BEV industry
- (c)
- Conclusion
- (1)
- Relationship between the input suppliers and the GOC
- (2)
- Core characteristics and functions of the battery suppliers
- (3)
- Conclusion
- (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’
- (i)
- Legal and economic environment prevailing in the PRC
- (a)
- Relationship between LFP suppliers and the GOC
- (b)
- Core characteristics and functions of the lithium suppliers
- (c)
- Conclusion
- (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
- (a)
- Benefit
- (b)
- Specificity
- (c)
- Calculation of the subsidy amount
- 3.8.
- Revenue foregone through tax exemption and reduction programmes
- (1)
- Enterprise Income Tax (‘EIT’) reduction for High and New Technology Enterprises
- (a)
- Legal basis
- (b)
- Findings of the investigation
- (c)
- Benefit
- (d)
- Specificity
- (e)
- Calculation of the subsidy amount
- (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)
- Dividends exemption between qualified resident enterprises
- (a)
- Legal basis
- (b)
- Findings of the investigation
- (c)
- Benefit
- (d)
- Specificity
- (e)
- Calculation of the subsidy amount
- (4)
- Accelerated depreciation of equipment used by High-Tech enterprises
- (a)
- Legal basis
- (b)
- Findings of the investigation
- (5)
- Technology transfer revenue deduction
- (a)
- Legal basis
- (b)
- Findings of the investigation
- (c)
- Benefit
- (d)
- Specificity
- (e)
- Calculation of the subsidy amount
- (6)
- Battery consumption tax exemption
- (a)
- Legal basis
- (b)
- Findings of the investigation
- (c)
- Benefit
- (d)
- Specificity
- (e)
- Calculation of the subsidy amount
- (7)
- Subsidisation as regards non-cooperating companies (SAIC Group)
- 3.9.
- Other schemes
- 3.10.
- Conclusion on subsidisation
- 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.
- Conclusion on the situation of the industry
- 5.
- THREAT OF INJURY
- 5.1.
- Introduction
- 5.2.
- The nature of the subsidy or subsidies in question and the trade effects likely to arise therefrom
- 5.3.
- Significant rate of increase of subsidised imports into the Union market indicating the likelihood of substantially increased imports
- 5.4.
- Sufficient freely disposable capacity and absorption capacity of third country markets
- (a)
- Capacity and spare capacity in China
- (b)
- Production in China
- (c)
- Demand in China
- (d)
- Exports of China and availability of other exports markets
- (e)
- Conclusion
- 5.5.
- Price level of subsidised imports
- 5.6.
- Level of inventories
- 5.7.
- Foreseeability and imminence of the change in circumstances
- 5.8.
- Claims from parties
- 5.9.
- Conclusion
- 6.
- CAUSATION
- 6.1.
- Effects of the subsidised imports
- 6.2.
- Other known factors
- 6.2.1.
- Imports from third countries
- 6.2.2.
- Export performance of the Union industry
- 6.2.3.
- Demand related factors
- 6.2.4.
- Competitiveness of the Union BEV industry
- 6.2.5.
- Competition between ICE cars and BEVs
- 6.2.6.
- Lack of economies of scale and start-ups
- 6.2.7.
- Supply issues
- 6.2.8.
- EU policy on Biofuels
- 6.2.9.
- Imports from China by the Union 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 and effects on climate objectives
- 7.6.
- Risk of retaliation
- 7.7.
- Interdependency
- 7.8.
- Government incentives in the Union
- 7.9.
- Trade-distorting effects of subsidies
- 7.10.
- Other claims
- 7.11.
- Conclusion on Union interest
- 8.
- REGISTRATION
- 8.1.
- Comments on registration
- 9.
- PROVISIONAL COUNTERVAILING MEASURES
- 9.1.
- Provisional measures
- 10.
- INFORMATION AT PROVISIONAL STAGE
- 11.
- FINAL PROVISIONS
- Article 1
- Article 2
- Article 3
- Article 4
- ANNEX
- Cooperating Chinese exporting producers not sampled
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