The government officialized the Requirements to bring hybrid and electric vehicles without paying tariff Import, ads that the Minister of Economy, Luis Caputo, had advanced at the time, together with changes in internal taxes.
In this way, the previously communicated is ratified: a quota of 50,000 electrified models that will not be reached by the 35% import tariff that pays any model that enters the country that has been manufactured in some “extra zone” market, that is, anyone less Brazil and Mexico, with which there is a free trade agreement.
This benefit is only possible to apply on models that have a FOB price of $ 16,000. This would be equivalent to a vehicle whose market list price is between 25 and 30 million pesos.
Among the details of the measure, it was known how those quotas will be distributed that, in principle, will be distributed equally between the Association of Automotive Manufacturers (ADEFA) and the Chamber of Importers and Official Distributors of Automotive (Cidoa). Here also includes natural persons (importing importers).
Because of the characteristics set by the new regulations, it seems a benefit made of vehicles produced in China, since there are many options that would qualify with these conditions. Thing that does not happen with manufacturers from other markets such as the European, the United States, Japan or Korea.
What does the measure say?
As expressed by the Government, this measure has as its purpose Foster the use of models with alternative energy. And in the published data the details that had been previously advanced were confirmed.
This benefit will run for vehicles that have a FOB price less than $ 16,000. This acronym comes from English Free On Board and represents the value of merchandise or product on board a maritime transport. To that value then you have to add the cost of import tariffs and taxes in each country.
And although it is difficult to determine the FOB price of each product, since the agreements between seller and buyer can have multiple variables, it could be said that a model with a FOB of 16,000 dollars, which is what the government proposes in this announcement, will then result in a vehicle whose market price will be between 25 and 30 million pesos.
In Argentina, every vehicle that arrives imported “extra zone”, that is, that it does not come from countries with which there is free trade agreement, such as Brazil and Mexico, must pay a 35%tariff. With which this modification would significantly reduce the import cost.
BAIC BJ30, hybrid model that would benefit from the measure.This measure includes a quota of 50,000 units that will receive the benefit (it remains to define if they are annual), which is three times the number of electrified models that were sold during the past year. In addition, it would represent 10% of the total projected market for this year.
What types of cars will receive the benefit?
According to what is published by the Government, this benefit is contemplated for models that “use an alternative motorization technology to conventional internal combustion engines, understanding as such to those propelled by an electric motor and alternately, or jointly, by an internal combustion engine (hybrid vehicles); an electric motor exclusively (electric vehicles) or an engine at fuel cell (hydrogen vehicles) “.
They are exempted from the tariff’s remove Those who have a weight of less than 400 kilosnot counting the batteries, have a power of less than 15 kW or an autonomy of less than 80 kilometers.
The BAIC EU5 is also achieved by the new regulations.In this way, any vehicle with some type of hybridization is incorporated into the benefit, including models with Mild-Hbrid or soft hybridization technology, which have a degree of electrification as a propulsion set but the electric motor is never able to move the wheels alone.
A detail that is now known is that to obtain the benefit, the applicants must inform the sale value to public in dollars and the number of units to be imported previously. And if the requested quota is not fulfilled, you may entail sanctions.
Chinese hybrid and electric invasion?
The Argentine market was The most elusive to the spread of Chinese brands throughout Latin America. The reasons are several, but among the most important are tariff and tax guidelines, the years with import restriction and fluctuations that generate economic instability.
With a scenario that today is different, this new measure of elimination of the tariff for the importation of hybrids and electric shouted perfectly to vehicles from the Asian giant.
Byd car download in the port of SUPE, in Pernambuco, Brazil.China is the country that most pushed in the adoption of models with alternative energy. Last year, There almost 12.8 million hybrid and electric units were sold and represent 40% of total sales. And it is projected that this year they represent half of the sales of 0 km.
To this mass production we must add the subsidies that the Chinese government makes to the automotive industry allowing extraordinarily low sales values to be compared to European, Japanese, Korean or American rivals.
To have an idea, the models that are sold today in Argentina and would have the removal of the import tariff are the Renault Kwid E-Tech, the Chevrolet Spark and the BAIC EU5 and BJ30E, three electrified vehicles that come from China. In fact, Baic has already dropped the US $ 34,280 to US $ 29,800 list before formalizing the measure.
“BAIC has very competitive hybrid and electric products. Let’s see how they look,” he said at the time Clarion Hugo Belcastro, importer of the Chinese brand in Argentina. Who showed an excited caution: “We are going to wait for regulations but it is a good start.”
While it will not be like the invasion of Chinese cars that is happening in Brazil since last year, but the context suggests that a new era of models from the Asian giant in our country begins.
