Removal of Customs Duty on Electric Vehicles

Australian Customs Notice No. 2022/34

Since 1 July 2022, customs duty on electric vehicles, plug-in hybrid vehicles and hydrogen fuel-cell vehicles with a customs value less than the fuel efficient luxury car tax threshold will have a ‘Free’ rate of duty. The ‘Free’ rate of duty applies to all goods that meet this requirement, except those from Russia and Belarus which currently have an additional duty of 35 per cent applied.

Implementation

Notice of Intention to Propose Customs Tariff Alterations (No. 6) 2022 (the Notice) published on 21 July 2022 implements this measure. The text of the Notice, including new Additional Note 6 to Chapter 87 and the new tariff classifications 8703.60.12, 8703.70.12, 8703.80.12 and 8703.90.12.

The Notice operates from 22 July 2022 and applies to goods entered for home consumption from
1 July 2022.

LCT Threshold for 2022-23

Consistent with Australian Customs Notice No. 2022/25 for the 2022-23 financial year the LCT threshold for fuel efficient vehicles is $84,916.

Integrated Cargo System

The new classifications will be entered into the Integrated Cargo System (ICS) as soon as practical following the publication of the Notice. The new classifications will commence retrospectively on 1 July 2022. Any goods entered for home consumption on or after 1 July 2022 until the time that the new classifications have been entered into the ICS will need to apply for a refund. Refund circumstance ‘EB’ should be quoted.

Revised Customs Tariff Working Pages for Schedule 3 are at Attachment B. The Online Tariff is available at:
Current working tariff (abf.gov.au). Amendments to the Online Tariff will be published as soon as practical
after the publication of the Notice.

Any queries related to this issue can be directed to tradepolicy1@abf.gov.au.