Tariff reduction or elimination for the importation of electric cars extended.

SEPTEMBER 13, 2021

The Government renewed until mid-March 2023 the reduction, in some cases, and the elimination, in others, of tariffs on the import of electric cars through decree 617/2021 published this Monday in the Official Gazette.

The regulation set at 4,500 the maximum limit of units that may be effectively imported during the extension period of the measure.

It also established that of the limit set, 4,275 units will be assigned to terminal companies based and with production in Argentina, while the remaining 225 will be granted to importer representatives of terminals not based in the country.

In May 2017, through Decree 331, reduced rates of the Extra-zone Import Duty (DIE) of 5%, 2% and 0% were established for the importation of certain hybrid, electric and fuel cell (hydrogen) automobiles, complete, both assembled and semi-disassembled and totally disassembled, for a term of 36 months.

At the beginning of November 2020, by means of decree 846/2020, the Government renewed the benefit until May of this year, and set the import quota for the period at 1,000 units.

Upon expiration of the regime, the Association of Automotive Manufacturers (Adefa) requested the extension of the term and the authorized quantities.

The decree highlighted that "a high utilization of the transitory tariff benefit granted by the State to the local automotive industry has been observed throughout the term (of the regime)".

Therefore, it emphasized that "it is convenient to reestablish the tariff benefits for a determined term, prioritizing in the total quantification of the maximum limit of units that may be imported with the reduction of the reduced rate of the DIE to the terminals located in the country and that have local automotive production over the importing representatives of terminals not located in the country".

The regulation indicated that "the automotive industry worldwide is implementing an engine replacement due to the primary need to eliminate, in part, the negative environmental impact derived from the emission of gases resulting from the use of internal combustion engines, mainly Otto cycle engines and diesel engines".

He pointed out that "such replacement is manifested with the incorporation of hybrid engines, electric engines and fuel cells, understanding as such those that use hydrogen as fuel, as well as the new motorizations that present notorious advantages from an environmental point of view as well as lower fuel consumption and the use of clean and renewable energies".

"In attention to the development of the local automotive industry, its production level and its vocation to incorporate to its offer vehicles with the new referred motorizations, it was considered convenient to establish initial measures for a first stage of commercialization of the same", pointed out the decree.

It remarked that "some of the main barriers for the adoption of the new technologies are, on the one hand, the high cost of vehicles with alternative motorization and, on the other hand, the lack of knowledge of the public regarding their use".

Source: El Litoral

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