Commission accepts price undertaking from Chinese electric car producer

Key development

The Commission accepted a price undertaking from Volkswagen (Anhui) Automotive Company Ltd. and its related EU party SEAT S.A. that allows exports of the CUPRA Tavascan to the EU at or above a proposed minimum import price and exempts those imports from the countervailing duties on BEVs from China. Volkswagen (Anhui) also committed to limit import volumes and to invest in BEV-related projects in the EU with defined milestones.

Context

A Commission investigation found that the price floor proposed by Volkswagen (Anhui) for the CUPRA Tavascan would not be injurious to EU industry, prompting acceptance of the voluntary undertaking as an alternative to duty payment. The undertaking mechanism lets exporters avoid countervailing duties by selling above a minimum import price.

Who is affected

EU importers of CUPRA Tavascan BEVs from China, Volkswagen (Anhui) Automotive Company Ltd., and SEAT S.A., Martorell, Spain are directly affected, along with EU industry stakeholders and compliance and customs teams monitoring BEV imports from China.

What to expect

The immediate next step is implementation and monitoring of the undertaking, including the investment milestones and volume cap; failure to comply may lead to withdrawal of the undertaking and retroactive reinstatement of countervailing duties, leaving importers exposed to duties and sourcing constraints.