CN code 8703 22 classifies passenger cars with spark-ignition combustion engines with cylinder capacity exceeding 1000 cc but not exceeding 1500 cc. This segment includes popular compact and subcompact cars such as the Volkswagen Polo, Opel Corsa, Renault Clio, Peugeot 208, and Skoda Fabia, equipped with turbocharged engines producing 80 to 150 HP. Vehicles in this class represent one of the highest-volume segments in the European automotive market, offering an optimal balance of performance, fuel consumption, and running costs. All new cars must meet Euro 6e/Euro 7 emission standards and hold type-approval under Regulation (EU) 2018/858. Vehicles are equipped with advanced safety systems required by Regulation (EU) 2019/2144, including intelligent speed assistance, driver drowsiness warning, lane keeping assist, and eCall system.

Importing passenger cars with 1000-1500 cc engines (CN 8703 22) is subject to customs duty, excise duty, and VAT. The customs duty rate for passenger cars from third countries should be verified in TARIC/ISZTAR4. Excise is 3.1% of the tax base for engines up to 2000 cc. The excise tax base for non-EU imports is the customs value plus duty. VAT is charged on the sum of customs value, duty, and excise. For intra-EU acquisition of a vehicle from another EU country (e.g., Germany, the Netherlands), the importer submits an excise declaration within 14 days of acquisition and pays excise before first registration. The value of a used vehicle for excise purposes may not be lower than average market value – customs and revenue authorities may challenge the declared value. The vehicle must have a Certificate of Conformity (CoC) or obtain individual approval. Technical inspection, insurance, and registration are required.

The passenger car segment with 1000-1500 cc engines (CN 8703 22) is undergoing transformation towards electrification. Regulation (EU) 2023/851 sets a zero CO2 emission target for new cars from 2035, meaning manufacturers are gradually phasing out combustion engines in favour of plug-in hybrid and fully electric powertrains. During the transition, mild hybrid (MHEV) engines combining a small petrol engine with a 48V system are popular, reducing CO2 emissions while retaining classification under CN 8703 22. Prices of new cars in this segment are rising due to emission compliance costs and mandatory safety equipment. Importing used vehicles from EU countries, particularly Germany and the Netherlands, remains a popular way to acquire a cheaper vehicle, though excise, registration, and potential repair costs must be factored in. Residual values of combustion vehicles may decline over the coming years due to planned low-emission zone restrictions.