Duties on automobiles from EU twice lower starting from January 30 - final prices of new automobiles from EU to be decreased by 5 to 8%

Application of the Transient trade agreement with EU in Serbia, which will introduce reduction of numerous duties on import of goods from the Union, starts today (January 30, 2009). Duties on import of new used automobiles from EU will be lowered from 20 to 10%.

People from the Customs Administration say that, once the changes in the Law on customs rate are put in effect, duties on import of motor vehicles from EU will be cut from 20 to 10%.

The prices of the new automobiles from EU will be 5-8% lower, while the new price lists of local automobile companies should be announced at the beginning of February.

People from the business association of importers of vehicles claim that there is much confusion regarding duties, and that they will have more information after the meeting with the representatives of the Ministry of Finance.

People from the Customs Administration explain that the prices of all automobiles manufactured in EU will be lowered, no matter if they were of Japanese or some other make. The condition is that the duty on automobiles be lowered and that the percentage of used imported semi-finished products should not exceed 40%.

By the way, according to the Law on confirmation of Transient Agreement, the automobiles belong to the group of very sensitive products, which means that the duty on them should be lowered to 7.5% on January 1st, 2010, 5% at the beginning of 2011, 2.5% on January 1st, 2012, until it is completely revoked on the first day of year 2013.