What happens next in the EU investigation into Chinese EVs?
European Commission is planning to impose provisional duties on electric vehicles (EVs) produced in China ranging from 17.4% to 38.1%, on top of its standard 10% tariff for car imports.
The duties are due to apply by July 4.
WHAT ARE PROVISIONAL MEASUREs?
Provisional duties can be imposed within nine months of the start of an EU anti-subsidy investigation if the Commission concludes it needs to prevent injury to EU industry.
They can be applied for a maximum of four months, by which point the Commission will decide whether to apply final duties, known as definitive duties. In the EV case, the deadline for this is Nov. 3.
Provisional duties are only collected if definitive duties are imposed at the end of the investigation. If definitive duties are lower or not applied, then provisional duties are adjusted down accordingly. Until then, customs authorities normally just require a bank guarantee from importers.
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The duties can also be applied retroactively for as much as 90 days, so in the EV case from early April, with a decision on this taken at the end of the investigation.
WHAT HAPPENS NEXT?
By July 4, the Commission will publish in the EU official journal a lengthy document detailing the ongoing investigation and its findings. The provisional duties will then apply the following day.
Interested parties such as China and EV producers have until July 18 to comment on the
