BRUSSELS, Oct 29 (Reuters) - The European Union formally

approved imposing tariffs on Chinese-made electric vehicles

(EVs) on Tuesday after an investigation that has divided the

bloc and prompted retaliation from Beijing.

The European Commission has set rates ranging from 7.8% for

Tesla to 35.3% for China's SAIC and other producers deemed not

to have cooperated with the EU's anti-subsidy probe. These will

be on top of the EU's standard 10% car import duty.

WHEN AND FOR HOW LONG?

The EU plans to publish its regulation imposing tariffs

later on Tuesday or early on Wednesday.

Final or "definitive" tariffs are expected to apply from the

following day for five years.

The Commission has decided that provisional duties dating

back to July will not be collected. Companies had been able to

cover these with a bank guarantee.

The tariff imposition follows a vote on the Commission's

proposal for definitive tariffs by the EU's 27 members on Oct. 4

- with 10 in favour, five against and 12 abstentions.

CONTINUED TALKS WITH BEIJING

The Commission has said it is willing to continue

negotiating an alternative to tariffs with China even after

tariffs are imposed. Both sides have agreed to a ninth round of

technical negotiations, although the EU said there were "large

remaining gaps".

The EU executive said last month it could re-examine price

undertakings - involving minimum import prices and typically

volume caps - having previously rejected those Chinese companies

have offered.

Previous minimum price deals agreed by the EU have been for

homogenous commodities, rather than complex products such as

cars. The Commission believes a single minimum price would not

be adequate to counter injury caused by subsidies.

It might also have to be different for separate producers,

depending on the value of sales and receipt of subsidies.

Beijing has repeatedly warned the Commission against

separate negotiations with EV companies. Various manufacturers

have authorised the China Chamber of Commerce for Machinery and

Electronics to negotiate on their behalf.

The Commission has said any alternative must be in line with

World Trade Organization (WTO) rules, adequate to remove the

injury due to subsidies, and enforceable.

CHINESE RETALIATION

In moves seen as retaliation, China has launched

anti-dumping investigations into EU exports of pork and brandy,

and an anti-subsidy probe into EU dairy products, but it has yet

to impose any measures.

The EU launched a challenge at the WTO in September against

the dairy probe.

China's Commerce Ministry has also met with automakers and

industry associations to discuss raising import duties on

large-engined gasoline vehicles, which would hit German

producers hardest.

Germany's exports of vehicles with engines of 2.5 litres or

larger to China were worth $1.2 billion last year, Chinese

customs data shows.

WHAT HAPPENS AFTER THE INVESTIGATION?

Any company not in the sample group of BYD,

Geely and SAIC that wishes to have its

own individual duty can ask for an "accelerated review" just

after the imposition of definitive measures. Such a review

should last a maximum of nine months.

The Commission can also carry out an "interim review" after

a year has elapsed if the measures are no longer necessary or if

they are not sufficient to counteract subsidies.

The Commission often looks into whether producers are

evading duties via exports of parts for assembly elsewhere. For

the EU, such circumvention exists if 60% or more of the value of

parts are imported from the country subject to duties and if the

value added in the assembly is no more than 25%.

Companies can dispute the measures at the European Court of

Justice. China has already launched a challenge at the WTO. Both

legal paths can take well over a year.

The Commission has said it is confident its investigation

and measures are compatible with WTO rules.