Currently reading: UK and EU confirm three-year rules of origin delay
Legislation will limit where parts for an electric car can be sourced, with tariffs imposed on offenders

The UK and European Commission have today signed off a three-year delay to laws that would have imposed tariffs on certain UK-exported and imported vehicles.

Due to be rolled out on 1 January 2024, the 'rules of origin' legislation will now not come into force until 1 January 2027. These rules, created as part of the Brexit negotiations, require 45% of the value of an electric vehicle (and 60% of the battery pack) to have originated in the UK or EU.

Firms whose vehicles don't meet these standards will be fined as much as £3400 per imported EU-made EV and £3600 per exported UK-made EV – the equivalent to a 10% duty. These prices are expected to be passed on to the consumer.

As part of the new Trade and Cooperation Agreement, a clause has been added that cements the new date and prohibits it from being extended further.

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