Northern Ireland slaps tariffs on Chinese EVs
Kinda
Just a short one this week, sorry. Blame my children.
The US has slapped tariffs on Chinese electric vehicles. The EU has slapped tariffs on Chinese electric vehicles. Turkey has slapped tariffs on Chinese electric vehicles. The UK has … not slapped tariffs on Chinese electric vehicles.
Or has it?
The UK government certainly hasn’t. Yet, there is one part of the UK where tariffs on Chinese electric vehicles will be, ahem, slapped: Northern Ireland.
Post-Brexit, tariff arrangements in Northern Ireland are rather complicated.
To massive oversimplify, the summary version is that EU tariffs apply to goods moved into Northern Ireland, either from Great Britain or the rest of the world, unless the importer can demonstrate the product will remain in Northern Ireland. (Again, this is massively oversimplified so don’t come shouting at me!)
However, there is one instance in which the EU tariff always applies, even if the importer can demonstrate the product will remain in Northern Ireland: when the imported good is subject to an EU trade defence measure [note: assuming the EU tariff is higher than the equivalent UK].
See Article 7.2.
And guess what, the EU’s countervailing duties on imported Chinese electric vehicles are very much a trade defence measure. So, therefore, they apply to imports into Northern Ireland, which is part of the UK.
What does this mean in practice?
As above, tariff arrangements in Northern Ireland are complicated.
But, as a starting point, if you import a Chinese EV directly into Northern Ireland, then you will need to pay the relevant EU anti-subsidy tariff, ranging from 7.8% (Tesla) to 35.3% (SAIC brands and other companies deemed not to have cooperated with the investigation).
However, assuming you can demonstrate that the car has stayed in Northern Ireland (or GB), you might be able to claim back the duty under the UK’s duty reimbursement scheme. See the specific provisions relating to trade remedies.
The amount that can be claimed back is limited by de minimis subsidy rules, which amounts to whatever €300,000 is in sterling on a rolling three-year basis. So it kinds depends on just how many of these EVs you plan to import. [Edited: the de minimis is on the duty waiver scheme, not the duty reimbursement scheme.]
There is another way around the tariff. You could also buy the car in GB and drive it over as a personal belonging.
Probably. (Note: not legal advice. And I imagine people at the ports might get suspicious if a fleet of BYD motors turns up driven by people claiming to be taking them home.)
So yeah, a part of the UK has kinda slapped tariffs on Chinese EVs.
Best,
Sam