Question 1

What is the import duty rate for Passenger Cars in European Union?

Accepted Answer

The MFN (Most Favoured Nation) import duty rate for Passenger Cars (HS 8703) in European Union is 6.5% on the CIF value. MFN rate. Fully phased out to 0% under CETA (Canada) and JEFTA (Japan). From China: 6.5% + possible ADD.

Question 2

Is VAT charged on Passenger Cars imports to European Union?

Accepted Answer

Yes. European Union charges VAT at 20% on the CIF value plus any import duty. This applies to virtually all commercial imports.

Question 3

Are there FTA rates available for Passenger Cars in European Union?

Accepted Answer

Yes. CETA/JEFTA: 0%. CETA (Canada), JEFTA (Japan), EU–Korea FTA, EU–Vietnam FTA (EVFTA), EU–UK TCA are the key agreements — verify origin requirements with your customs broker.

Question 4

How is import duty calculated for Passenger Cars entering European Union?

Accepted Answer

Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 6.5% is applied to this value. VAT (20%) is then applied on the CIF value plus duty.

European Union Import Duty Rate for Passenger Cars

How duty is calculated

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Passenger Cars duty rates in other markets