They are the cheapest in the homeland. By the time they cross the European border, thanks to the introduction of additional tariffs, Chinese electric cars lose a good part of their competitive advantage. Forbes Serbia analyzes what awaits potential buyers who would like to import such a four-wheeler.
To begin with, it is possible to buy an “electric Chinese” in one of the European countries. It is not impossible, above all in theory, to buy it at the very source – in China.
In short, when it comes to customs, Europe can be both cheaper and more expensive. Depending on the official origin of the car.
If they are imported from China, the customs rate is not disputed. Neither for new nor for used electric cars, but obtaining part of the documentation would be more demanding.
First procedure
Boban Ćorović, Secretary General of the Serbian Association of Vehicle Importers, explains that the procedures and accompanying documentation for importing electric cars are the same as when importing an internal combustion car.
“First of all, a foreign invoice is needed, then a certificate, some kind of confirmation of technical characteristics. It is a regular procedure. Customs clearance is being done, then customs clearance and import VAT,” says Ćorović for Forbes Serbia.
It is easier for buyers in Serbia to get a Chinese car from one of the Chinese factories on the Old Continent. And it would be even better if they weren’t officially Chinese.
“Chinese cars from European factories come to Serbia more easily,” adds Ćorović. “If the car has a Euro 1 certificate, which is proof that it is a European product, it is exempt from customs duties. This is where the problem arises. Rarely any Chinese electric car, even a European one, can fulfill this requirement”.
Euro 1 certification means that more than half of the installed parts, at least 51 percent, are of European origin. This is not easy to fulfill, because the largest percentage of parts is the battery itself. And she is – Chinese. More than 40 percent of parts go to batteries.
“European manufacturers of electric cars are in a similar problem. It is not easy for them to fulfill that condition either. Also, because of the battery. If it’s not Euro 1, you have to pay the customs duty,” explains Ćorović. “When they arrive from China, customs are paid. The tendency is that during the coming years this levy will be reduced and that in the end, when importing from China, they will be exempted from customs duty”.
What about when you’re alone
There are four brands of Chinese electric cars in Serbia. These are Geely, Chery, MG and Lynk&Co, which appeared at the last auto show.
“I don’t know for sure whether these companies have their warehouses in Europe or whether they arrive from China. It is possible that they come directly from China,” adds Ćorović.
Hypothetically, an individual could also engage in the action of importing an electric car. But it carries with it certain risks.
“Hypothetically and legally, it is possible, but it is really complicated,” says Ćorović. “In that case, the individual would have to go through the homologation process at the Traffic Safety Agency. Through this procedure, it is determined whether the vehicle meets the requirements and whether it can be registered in Serbia. Otherwise, it is completed by the distributor company itself”.
Buying from authorized dealers brings advantages that the owner would not have if he bought it himself.
“It would be a problem to get a warranty on the vehicle,” warns Ćorović. “The one who buys from an authorized seller gets a guarantee. It is legally possible for a person to buy a car himself and import it from China, but practically no one does that. It’s just complicated.”
How much are the customs duties?
It’s been about a year since Serbia signed the Free Trade Agreement with China. It also regulates the issue of customs duties on new and used vehicles from this country.
“According to the Free Trade Agreement with the People’s Republic of China, the preferential customs duty rate for new passenger vehicles, so-called ‘hybrids’, is 11.3%, while a duty of 10% is provided for used hybrid vehicles,” said the Customs Administration. “For new and used passenger vehicles that have an exclusively electric drive, the preferential customs rate is 4.5%”.
The same Agreement envisages a gradual reduction of customs rates for goods with preferential origin.
“In 10 years, new cars, hybrid and electric, will be imported from China duty-free, while for used cars, a zero rate of duty will be applied in five years,” explained the Customs.
And now the key difference for vehicles arriving from Europe. If they are not officially European, customs are paid.
“If hybrid or electric cars of Chinese origin are imported from the EU, the customs rate is 12.5%,” the Customs Administration replied.
Legal entities, entrepreneurs and natural persons have the right to subsidize the purchase of new vehicles that have an exclusively electric drive.
“In the import procedure, in addition to the usual import documentation, it is also necessary to attach the Certificate of Homologation, issued by the Traffic Safety Agency of the Republic of Serbia,” the Customs Administration points out.
Less than one percent
Environmentally acceptable electric vehicles, which will be mandatory in the future, are not yet so present in Serbia. They make up only about one percent of our country’s vehicle fleet.
“Last year, exactly 322 new fully electric cars were imported to Serbia,” says Boban Ćorović. “That number was significantly influenced by the amount of subsidies that the state gave for a more environmentally friendly four-wheeler. In the same period, between 100 and 200 used electric vehicles were imported”.
Judging by this year’s subsidy fund, the number of new electric cars on Serbian roads will not increase significantly. Subsidies are planned in the total amount of 170 million dinars, which is about 1.45 million euros. Last year, the fund was 294 million dinars, or 2.5 million euros.
Source:
Forbes.n1info.rs
Photo: Autoblog.rs archive / MG
Source: autoblog.rs
