WILLEMSTAD – A car importer of hybrid vehicles has won a legal case against the tax inspector after being charged a significantly higher import duty than permitted for this type of vehicle.
The dispute arose after the inspector applied a 27 percent import duty on hybrid cars instead of the 10 percent tariff that should apply under the relevant classification for such vehicles. Hybrid cars combine a traditional combustion engine with an electric motor.
The importer challenged the assessment in court, arguing that the vehicles were incorrectly classified by the tax authorities. The court ultimately ruled in favor of the importer, concluding that the lower tariff should have been applied.
In Curaçao, import duties on goods are determined based on the international Harmonized System classification used by customs authorities. The rate can vary widely depending on the category of the product.
For vehicles, the classification can make a significant difference. Passenger cars are typically subject to around 10 percent import duty, while other vehicle categories or misclassification can result in higher tariffs.
In some cases, import duties on vehicles can even reach around 27 percent of the CIF value—the cost of the vehicle plus insurance and shipping—depending on how the vehicle is categorized by customs authorities.
The ruling is considered important for importers of hybrid vehicles, as it clarifies the applicable tariff and could affect how similar imports are treated in the future.
The case also comes at a time when discussions about vehicle import duties and incentives for more sustainable transportation are ongoing in Curaçao.