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Electric & new energy vehicles
EconomyChina Economy

EU launches 1st formal review of Chinese EV tariffs after VW Anhui’s submission

Bloc’s acceptance of a narrow review process from a manufacturer may give others hope that tariffs could be reduced or removed

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Staff at a factory in Tianjin operated by FAW-Volkswagen, a joint venture between the Chinese and German carmakers. Volkswagen has been among the noisiest corporate objectors to the EU’s tariffs targeting Chinese electric vehicles. Photo: Xinhua
Finbarr Berminghamin Brussels
The EU has for the first time launched a formal review of a price undertaking offer from a company seeking to avoid its tariffs on Chinese-made electric vehicles, following a submission from Volkswagen’s Chinese joint venture.

Over the course of 12 to 15 months, the European Commission will examine whether VW Anhui can replace its countervailing duties with a managed price system in a move that would effectively equalise the impact of the tariffs.

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While the commission is not reopening its lengthy investigation – a source of tension with Beijing – the fact that it has finally accepted a narrow review process from a manufacturer may give others hope that tariffs could be reduced or removed.

It is understood that VW Anhui started shipping its latest Cupra electric vehicle to Europe only after the investigation was completed and therefore could qualify for dispensation.

EU flags flutter outside the European Commission headquarters in Brussels. The bloc’s commission will examine whether VW Anhui can replace its countervailing duties with a managed price system. Photo: Reuters
EU flags flutter outside the European Commission headquarters in Brussels. The bloc’s commission will examine whether VW Anhui can replace its countervailing duties with a managed price system. Photo: Reuters

VW Anhui is a joint venture between Volkswagen and JAC Motors located in Hefei, in China’s Anhui province.

Volkswagen and its subsidiaries are subject to an additional 20.7 per cent import duty when they ship EVs from China to the EU, on top of a 10 per cent baseline duty for all models.

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The review will be limited to this undertaking offer, and the commission will not change its subsidisation and injury findings. The existing tariff rate will remain in effect throughout the review process.

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