INHALT

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