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.