(2)

The product subject to registration (‘the product concerned’) is new battery electric vehicles (‘BEVs’), principally designed for the transport of nine or less persons, including the driver, propelled (3) solely by one or more electric motors. Motorcycles are excluded from the investigation. The product concerned is currently classified under CN code 8703 80 10.

(3)

According to Article 24(5) of the basic Regulation, the Commission may, on its own initiative, direct the customs authorities to take the appropriate steps to register imports, so that measures may subsequently be applied against those imports from the date of such registration, in accordance with Article 16(4) of the basic Regulation.

(4)

As regards subsidisation, the Commission has at its disposal sufficient evidence tending to show that imports of the product concerned from the PRC are being subsidised. The alleged subsidies consist, inter alia, of:

(5)

The evidence of subsidisation was made available in the memorandum on sufficiency of evidence.

(6)

It is alleged that the measures described in recital (4) amount to subsidies because they involve a financial contribution by the Government of the PRC or other regional governments (including public bodies), or by private bodies directed or entrusted by the Government of the PRC, and which confer a benefit to the exporting producers of the product concerned. They appear to be specific and, thus, countervailable, among others, since they are limited to certain sectors, products and/or regions.

(7)

Therefore, the available evidence at this stage tends to show that the exports of the product concerned are benefiting from countervailable subsidies.

(8)

The evidence also shows critical circumstances in the form of massive imports in a relatively short period as well as a substantial increase of imports under CN code 8703 80 10 in the period from October 2023 to January 2024. Specifically, the evidence available shows that the amount of imports between October 2023 and January 2024 is 177 839 pieces. This represents an increase of 11 % compared to the investigation period (October 2022–September 2023) in terms of monthly average (see Table 1), and of 14 % compared to the respective period between October 2022 and January 2023 (see Table 2).

Table 1

Imports from the PRC in the IP and after investigation

Table 2

Imports from the PRC October-January Year-over-Year

(9)

At this stage it is possible that, on the basis of the data collected during the investigation, the injury, which would be difficult to repair, started to materialise even before the end of the investigation.

(10)

There is also a risk that an increasing number of Union producers will suffer from diminishing sales and reduced production levels if imports continue at the current increased levels at allegedly subsidised prices from the PRC as evidenced so far after the initiation of the investigation. It is clear that that risk will negatively impact employment and the overall performance of Union producers. This would constitute injury which would be difficult to repair.

(11)

Given the data and considerations set out in recitals (8) to (10), the Commission deemed it necessary to prepare the potential retroactive imposition of measures by imposing registration in order to preclude the recurrence of such injury. Thus, should the Commission conclude that the domestic industry suffers material injury at the end of the current investigation, the collection of countervailing duties on registered imports may be deemed appropriate to preclude the recurrence of such injury.

(12)

The Commission concluded that there is sufficient evidence to justify making imports of the product concerned subject to registration in accordance with Article 24(5) of the basic Regulation.

(13)

All interested parties are invited to make their views known in writing and to provide supporting evidence. The Commission may hear interested parties, provided that they make a request in writing and show that there are particular reasons why they should be heard.

(14)

Pursuant to Article 24(5) of the basic Regulation imports of the product concerned should be made subject to registration for the purpose of ensuring that, should the investigation result in findings leading to the imposition of countervailing duties, those duties can, if the necessary conditions are fulfilled, be levied retroactively on the registered imports in accordance with the applicable legal provisions.

(15)

Any future liability would emanate from the findings of the investigation.

(16)

At this stage of the investigation it is not yet possible to accurately estimate the amount of subsidisation. Thus, the Commission does not find it appropriate to provide an estimated amount of future liability.

(17)

Any personal data collected in the context of this registration will be treated in accordance with Regulation (EU) 2018/1725 of the European Parliament and of the Council (4),