Member countries of the European Union (EU) have voiced their support for the proposal to impose additional customs duties of up to 45% on electric cars manufactured in China. The EU Commission announced that the proposal to levy additional customs duties on electric cars imported from China has received the necessary support from member countries. The statement used the expression, “The EU Commission’s proposal to impose definitive anti-subsidy tariffs on electric car imports from China received the necessary support from EU countries.” It was emphasized in the announcement that this was an important step in the completion of the commission’s anti-subsidy investigation, and that the EU and China continue to work on alternative solutions that are compliant with the rules of the World Trade Organization (WTO). The statement also indicated that the implementing regulation containing the conclusive findings of the investigation would be published in the Official Journal of the EU by October 30, 2024 at the latest. If a qualified majority of the 15 member countries representing 65% of the EU population cast a favorable vote, the Commission’s proposal can be prevented from being passed. Initially supported by France and Italy, the additional tax measure faces opposition from Germany and Hungary. In recent years, the market share of Chinese manufacturers in electric cars sold in European countries had been rapidly increasing. Sales of low-priced and subsidized electric cars manufactured in China were surpassing their competitors. In July, the EU Commission announced the start of the temporary imposition of additional taxes on electric cars manufactured in China imported into EU member countries. Prior to this decision, a 10% tax was applied to electric vehicles imported from China. The latest application is expected to result in an additional tax of 7.8% on Tesla’s models produced in China, 17% on BYD, 18.8% on Geely, 20.7% on manufacturers collaborating in the investigation but not listed, and 35.3% on SAIC and other non-collaborating companies. The new tax rates are expected to be applied on top of the current 10% tax rate. It is anticipated that the taxes up to 45% will start to be collected in early November.
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