HomeStoresReduction and elimination of tariffs on imports of goods extended

Reduction and elimination of tariffs for the import of electric cars is extended

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The Government renewed until the beginning of May next year the reduction, in some cases, and the elimination, in others, of tariffs on the import of electric cars through the Decree 846 / 2020 published this Thursday (05.11.2020) in the Official Gazette.

The standard sets out in 1.000 is the maximum limit of units that can actually be imported during the extension period of the measure.

It also states that "Only terminal companies based and with production in the country may request the importation of vehicles under the provisions of this measure."

In May 2017, through Decree 331, reduced rates of the Extra-Zone Import Duty (DIE) of 5%, 2% and 0% were established for the importation of certain hybrid, electric and fuel cell (hydrogen) automobiles, complete, both assembled and semi-disassembled and totally disassembled, for a period of 36 months.

The regime was defeated last May, The Association of Automotive Manufacturers (Adefa) requested an extension of the deadline and the authorized quantities.

Today's decree highlights that "a high use of the temporary tariff benefit granted by the State to the local automotive industry has been observed throughout the validity of the regulation."

It also stresses that, "with the same objective pursued at the time of issuing decree 331/17, it is appropriate to reestablish the validity of said decree for a certain period, limited to terminals located in the country and that have local automotive production."

Vehicles covered by the tariff benefits "are those that use an alternative motor technology to conventional internal combustion engines, meaning those powered by an electric engine and alternatively, or jointly, by an internal combustion engine (hybrids)."

It also includes those powered by "an exclusively electric motor (electric vehicles) or a fuel cell (hydrogen) motor."

However, the new provision specifies that "vehicles with an empty weight of less than or equal to 400 kilograms (kg) for those intended for the transport of people, not including the weight of the batteries for electric vehicles, are exempt from the benefits of the measure."

The measure also does not include the reduction or elimination of tariffs on vehicles that have "an empty weight of less than or equal to 550 kg, for vehicles intended for the transport of goods, not including the weight of the batteries for electric vehicles", nor does it cover those with "a maximum power of less than or equal to 15 kilowatts" and "a range of less than or equal to 80 kilometres".

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