The European Commission has released guidance on how Chinese electric vehicle (EV) exporters could avoid EU anti-subsidy duties by offering price undertakings based on minimum import prices.
The guidance document outlines the framework for submitting price undertaking offers in the context of countervailing duties applied to battery electric vehicles (BEVs) imported from China.
It describes the expected structure and content of such offers, covering elements such as minimum import prices, product scope, annual sales volumes, distribution channels, risks linked to cross-compensation and any proposed future investments within the EU.
According to the European Commission, all price undertaking offers will be evaluated using the same legal standards under the EU’s basic anti-subsidy Regulation.
The assessment process will be objective, non-discriminatory and aligned with World Trade Organization (WTO) rules.
To be acceptable, an undertaking must remove the injurious effects of subsidisation, be workable in practice, limit the risk of cross-compensation and comply with wider policy considerations.
The document follows the Commission’s decision on 29 October 2024 to impose definitive countervailing duties of between 7.8% and 35.3% on BEVs imported from China, marking the conclusion of its anti-subsidy investigation.
At the same time, the European Union and China have been examining alternative, WTO-compatible options, including price undertakings, through discussions with China’s Ministry of Commerce.
The guidance explains that minimum import prices may be determined by adjusting exporters’ historical cost, insurance, and freight prices to reflect the applicable duty margin, or by referencing sales prices of comparable BEVs produced in the EU that are not subsidised.
It also notes that undertakings covering narrower product ranges and simpler sales, and distribution arrangements would be easier for authorities to monitor and verify.
Chinese exporters may submit price undertaking offers either individually or jointly, with each proposal assessed on its own merits.
The China Chamber of Commerce to the EU (CCCEU) said the outcome of China–EU consultations on electric vehicles supports trade stability, reflects business concerns, and underscores dialogue-based dispute management.
In its statement on X, CCCEU said: “CCCEU believes that this constructive outcome will significantly boost market confidence, provide a more stable and predictable environment for Chinese electric vehicle manufacturers and related supply-chain companies operating in Europe, and promote deeper cooperation between China and the EU in market development, technological innovation, and other areas.”
The Commission added that any commitments related to future EU investments included in an undertaking must be clearly defined, verifiable and subject to ongoing monitoring.
Failure to comply could result in the withdrawal of the undertaking and the retroactive collection of duties.
Once a formal price undertaking offer is submitted, the Commission will launch an assessment process that includes consultations with interested parties.
A final decision on whether to accept or reject the offer will be taken through an implementing decision, subject to a vote by EU member states.
“EU guidance sets price undertaking route for Chinese EV imports ” was originally created and published by Just Auto, a GlobalData owned brand.
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