From January, imports of electric cars into the UK from the EU will be subject to customs duty if the vehicles do not contain batteries manufactured in the EU, unless an extension is agreed by the European Commission. 

Despite recent investment in the electric vehicle (EV) battery production sector in the UK and EU, it has not come quick enough. An extension would allow the sector to remain competitive with international operators in the market. 

Rules of origin are a key part of duty free trade between countries operating under a trade agreement. It is important to know when you are importing from a country with whom the UK has a trade agreement, to ensure duties are not being overpaid on imports.