Tesla could get away with reduced customs duties on the import of its Chinese electric vehicles into the EU

The bill, which implies the introduction of increased duties on the import of Chinese-made electric vehicles into the European Union for a period of five years from November this year, is currently under discussion between the countries of the bloc, although temporary duties came into force in July. According to some reports, based on the results of further discussion, they will be slightly reduced relative to the July level.

Image source: BYD

As can be seen from the August tariff adjustments, the American company Tesla managed to obtain special conditions for the import of its electric vehicles assembled at a Chinese plant in Shanghai to Europe. Initially, she faced an additional duty of 20.8% above the base rate of 10% for all, but in August the additional duty rate was reduced to 9%. Now, as Bloomberg notes, citing informed sources, this rate will drop to 8% if new tariffs are approved by November of this year.

Also, the additional customs duty rate may be reduced by one percentage point for those Chinese automakers who are suspected by the EU authorities of receiving maximum subsidies from the Chinese government, or who showed less initiative during the investigation launched a year ago. Where previously they faced a rate of 36.3% on top of the base 10%, they can now get away with 25.3%, with the base rate remaining unchanged at 10%. While this issue is being discussed among EU member countries, the final tariff rates may be different by November of this year. Then they will come into force for five years, but at the end of this period they can be revised again.