EEU may discontinue preferential duty on electric car imports from 2022 - draft

<p> MINSK, May 20 - PrimePress. Member states of the Eurasian Economic Union (EEU - Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia) do not plan to extend the zero duty rate for the import of electric cars from outside the EEU from 2022. This follows from the draft resolution of the Council of the Eurasian Economic Commission (EEC) “On Amendments to the Eurasian Economic Commission’s Resolution #107 of 20 December 2017.” </p> <p>   </p> <p> The zero-rate customs duty on electric cars imported to the EEU territory was introduced on the initiative of Belarus on a temporary basis in March 2020 and is valid until the end of 2021. Currently, none of the EEU countries has made a proposal to extend the preference. </p> <p>   </p> <p> According to Russia’s Kommersant daily, prepared draft amendments to the Unified Goods Nomenclature of Foreign Economic Activity (HS) EEU and the Union’s Common Customs Tariff suggests introducing a 15% duty rate for electric cars from 2022, which corresponds to the overall barrier level for passenger cars. </p> <p>   </p> <p> Meanwhile, the Association of European Businesses (AEB) has addressed the Economy Ministry of Russia with a request to extend the zero-rate duty till 2024 as the duty increase conflicts with the intent to support electric cars market in the EEU. </p> <p>   </p> <p> In addition to the zero-rate import duty on electric cars, Belarus provides other incentives to encourage the demand for electric cars, as well as creation of the relevant charging and service infrastructure. For instance, according to the presidential ordinance “On promotion of electric cars,” individuals are exempt from VAT when importing electric cars for personal use in Belarus. </p> <p>   </p> <p> Thanks to these privileges there is an avalanche-like increase in the number of electric cars in Belarus: the number of electric cars increased from 400 units in June 2020 (before the decision on zero customs duty on electric vehicles came into force) up to 2.5 thousand in March 2021. According to expert estimates, by the end of 2021 the number of electric cars in Belarus may reach 5000 units, while in 2022 - 25.8 thousand and in 2025 - 112.2 thousand. </p> <p>   </p> <p> Currently, the draft resolution to cancel the preferential tariff on electric car import is under public discussion until June 18, 2021. End </p>

2021-05-21

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