Ukraine Exempts Hybrid Vehicles From Special Import Duty

Ukraine has decided to cancel the special import duty for cars with internal combustion engine with capacities of 1-2.2 liters and equipped with hybrid powertrains (electric engines with wheel drives) with the UKTVED classification codes 8703 22 10 00 and 8703 23 19 10, the Interfax Ukraine news agency reports.

The Interdepartmental Commission on International Trade has published the relevant notification in the Uriadovyi Kurier newspaper on Saturday, February 14. The Interdepartmental Commission on International Trade made this this decision on February 12 after reviewing its decision of April 28, 2012, and examining the position of the Ministry of Economic Development and Trade and Ukrainian manufacturers.

The commission concluded that Ukraine's national interests require exemption of hybrid cars from special import measures. The decision will enter into force on the date of its publication.

As reported earlier, on April 28, 2012, the Interdepartmental Commission on International Trade decided to introduce special import duties on cars with petrol engines, regardless of country of origin and import: 6.46% for cars with engine volumes of 1-1.5 liters and 12.95% for cars with engine volumes of 1.5-2.2 liters. The decision was made public only on March 14, 2013.

According to experts, the special duties significantly altered the balance of power on the Ukrainian market and reformatted demand for cars with diesel engines. At the same time, automakers said that the introduction of the special duties improved the critical situation in the automotive industry and allowed them to operate at higher capacity and start production of new models of cars.

According to the decision of the Interdepartmental Commission on International Trade, the rate of the special duty was lowered by one-third (to 4.31% for cars with engine volumes of 1-1.5 liters and 8.63% for cars with engine volumes of 1.5-2.2 liters) on April 14, 2014. The rates were expected to be lowered three-fold compared with the original rates installed (respectively 2.15% and 4.32%) on April 14, 2015.

At the same time, Ukrainian automobile importers are seeking complete abolition of the special duties, including taking into account the critical situation in the Ukrainian automobile market.