EU-Japan Free Trade deal - Cheaper Japanese cars?

positron

Among all the Brexit talk, EU-Japan free trade agreement comes into force today (surprised it's not in the media that much) - sounds like a great news overall?

https://www.dw.com/en/eu-and-japan-create-worlds-biggest-free-trade-zone/a-47319521

I wonder what would this mean to Japanese cars coming into the country - surely this is good news?

ELM327

positron wrote: »

Among all the Brexit talk, EU-Japan free trade agreement comes into force today (surprised it's not in the media that much) - sounds like a great news overall?

https://www.dw.com/en/eu-and-japan-create-worlds-biggest-free-trade-zone/a-47319521

I wonder what would this mean to Japanese cars coming into the country - surely this is good news?

"In the automotive sector, the EU will eliminate duties over a seven-year transition period"


Wonder if that includes VRT, in addition to all the nonsense of import duties

loyatemu

ELM327 wrote: »

"In the automotive sector, the EU will eliminate duties over a seven-year transition period"


Wonder if that includes VRT, in addition to all the nonsense of import duties

hardly - we have VRT on cars coming in from the EU, it's not going to be removed for cars coming from Japan (don't all the Japanese manufacturers have plants in Europe anyway?)

ELM327

loyatemu wrote: »

hardly - we have VRT on cars coming in from the EU, it's not going to be removed for cars coming from Japan (don't all the Japanese manufacturers have plants in Europe anyway?)

I'm talking about grey imports of jdm cars that are not sold here (skyline, chaser etc)

Del2005

ELM327 wrote: »

I'm talking about grey imports of jdm cars that are not sold here (skyline, chaser etc)

VRT is a tax to register a vehicle for use on Irish roads. It used to be called an import tax till the EU made them illegal. Plenty of other countries charge a registration tax the UKs is way less than ours while the Dutch is much higher.

So the duty should drop to zero but you'll still have VAT and VRT to pay. The other problem is that you are getting quotes from a much smaller pool of insurers with a JDM.

mikeecho

Del2005 wrote: »

VRT is a tax to register a vehicle for use on Irish roads. It used to be called an import tax till the EU made them illegal. Plenty of other countries charge a registration tax the UKs is way less than ours while the Dutch is much higher.

So the duty should drop to zero but you'll still have VAT and VRT to pay. The other problem is that you are getting quotes from a much smaller pool of insurers with a JDM.

So.. do we pay Duty on Jap cars.. or is it just VRT & VAT.

positron

I believe we do customs duty on any cars imported from outside EU, including Japan. This will change. I guess Japanese used car imports will get that much cheaper. But I am thinking German manufacturers will do something to protect their interests against Toyota and Nissan undercutting them.

Pops_20

mikeecho wrote: »

So.. do we pay Duty on Jap cars.. or is it just VRT & VAT.

We should no longer be paying Duty on Japanese cars. It's a pity EU duty is only 10 %.

We will still have to pay VAT @ 23% and VRT @ Pick a number out of this hat %

It's a welcome change if the full 10% saving is passed onto the consumer (at the end of the 7 years).