INHALT

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