ACEA warns rules of origin regulations could cost £1.47bn
Manufacturers selling vehicles in the UK could face additional customs duty costs of £1.47bn next year if proposed rules of origin requirements are introduced.
The EU is expected to export 520,000 electric passenger cars and vans to the UK, worth an estimated €17.9bn.
However, 82% of these vehicles would not meet rules of origin requirements stipulated in the EU-UK Trade and Cooperation Agreement (TCA), resulting in an estimated cost of €1.47bn in 2027 alone.
The European Automobile Manufacturers’ Association has warned that that this could affect the competitiveness and market share of European manufacturers in the UK.
It has now written to the European Commission and EU Member States to consider a temporary change to the battery rules of origin, warning that the requirements due to apply from January 2027 cannot be met by European vehicle manufacturers.
It said: “There is consensus in the European automobile industry that the TCA rules of origin for the batteries of electric vehicles need to be changed temporarily. To avoid the catastrophic effect of widespread incompliance, ACEA proposes a time limited change to the rules for batteries.
“The EU and the UK should agree to apply a flexible rule based on a battery pack assembly requirement until the end of 2029. In 2030 the rule should become significantly more restrictive for the batteries of passenger cars and vans by requiring the manufacture of their battery cells in either of the two parties to achieve origin.
“It is not a question of if we will comply with such rules but only of when.
“We are convinced that applying highly restrictive and unachievable rules of origin for the batteries of EVs as of next January will have massive direct financial impact on our European EV manufacturers with negative consequences.”
