BRUSSELS, Oct 4 (Reuters) - The European Commission said

on Friday it would adopt tariffs on China-made electric vehicles

(EVs) by the end of October after a split vote by EU members.

The Commission set tariff rates ranging from from 7.8% for

Tesla to 35.3% for SAIC and other producers deemed not to have

cooperated with the EU's anti-subsidy investigation. These will

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

EU VOTE

The European Union's 27 members voted on the Commission's

proposal for final or "definitive" duties, with 10 in favour,

five against and 12 abstentions.

The proposal could have been blocked by a qualified majority

of 15 EU members, representing 65% of the EU population vote

against. It is a very high hurdle.

The Commission could have chosen to submit an amended

proposal at a later stage to secure greater backing, but decided

not to do so, saying it had secured the necessary support.

Definitive tariffs for five years are expected to be in

force from Oct. 31.

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.

CONTINUED TALKS WITH BEIJING

The European Commission has said it is willing to continue

negotiating an alternative to tariffs with China even after

tariffs are imposed.

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

undertaking - involving minimum import prices and typically

volume caps - having previously rejected those Chinese companies

have offered.

One option under negotiation is a matrix of minimum import

prices calculated using criteria such as the range, battery

performance and length of the electric vehicle, along with

whether it is two- or four-wheel drive, a source familiar with

the matter said.

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 last week into 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.