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Ecuador's Foreign Trade Committee announces approval of zero import tariff on EVs
06 June 2019IHS Markit Automotive Expert
(Excerpt)
Ecuador's Foreign Trade Committee (Comex) has announced the
approval of a zero import tariff on electric vehicles (EVs),
reports M-Brain. According to the decree, which is in line with the
tax incentives implemented with the new productivity promotion and
investments law that established a zero-percent value-added tax
(VAT) on EVs, a zero import tariff will be levied on EVs, charging
equipment, as well as batteries. Before the decree, the electric
cars with a value of up to USD40,000 were exempt from import
tariffs, while the remaining vehicles were subject to a duty of
30%, and a tariff of 25% applied on replacement parts and
batteries.
Significance: In November 2018, Saucinc, a
transport operator in the city of Guayaquil (Ecuador), decided to
convert its entire fleet of transit buses to EVs with the purchase
of 20 units of 12-metre buses with a capacity of 80 passengers
each. To promote EV use, in March 2015, Ecuador's Coordination
Ministry of Production, Employment and Competitiveness (CMPEC)
signed a framework agreement for the promotion, marketing, and
manufacturing of batteries and EVs in the country. In January 2019,
the Indian government also cut the customs duty on EV parts by
nearly half, from 15-30% to 10-15%, in a bid to promote domestic
assembly of such vehicles, and it is looking to facilitate lending
by banks to consumers buying EVs.
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