On the 15th December 2023 it was announced that the European Commission will delay the new rules of origin due to be imposed on businesses across Europe on January 1st 2024. The new rules would have required 45% of parts inside electric vehicles to have originated from the UK or EU, and increase of 5% from 40%.
The rule was designed to ultimately to encourage the manufacturing of batteries inside the European Union rather than relying on manufacturers based in 3rd countries, predominantly Asia. Failure to meet the rules of origin would mean a tariff of 10% being imposed on vehicles being imported into the EU, and would largely affecting vehicles manufactured in the UK and then being sold in the EU. These vehicle would be subject to an average increase in sales price £3,400, making vehicles manufactured in the UK uncompetitive.
The delay is being described as a “one off” and will see the deadline extended to 31st December 2026, when the 45% threshold was due to rise to 55%.
Unforeseen circumstances such as the conflict in Ukraine having a knock on effect on energy bills have been sited as one of the reasons, however, even battery manufacturers in Europe are still coming on stream and will not have been up to speed by the deadline. Nevertheless, it will be very welcomed in the UK where there is currently no battery manufacturer.
If you require advice we have a team of CE Marking Consultants ready to talk to you about your requirements, and with our one stop EU and UK Authorised Representative Services we can help you ensure your products meet the requirements for importing into Europe and the UK.