Since 1 July 2026, a car built in the United States can enter the European Union without paying customs duty. The EU's 10% tariff on American cars was scrapped under the EU–US trade framework agreed at Turnberry in Scotland in July 2025, and the regulation that makes it law is now in force. For a €50,000 American car imported into Germany, that is a saving of nearly €6,000. But the zero rate is not automatic. Two conditions decide who gets it — where the car was built, and how it travelled to Europe — and plenty of cars people expect to qualify do not. This guide sets out the rules as they stand in September 2026.
What the Turnberry Deal Changed
The framework was announced on 27 July 2025 at Turnberry and set out in a joint statement on 21 August 2025. The United States capped its tariffs on most European goods, cars included, at 15%. In return, the EU agreed to remove its customs duties on American industrial goods.
The EU's side became law as Regulation (EU) 2026/1455, approved by the European Parliament on 16 June 2026 and by member states on 25 June. It was published on 30 June and has applied since 1 July 2026. Passenger cars are covered: the standard 10% duty on a US-origin car is now 0%.
What It Saves: A Worked Example
Customs duty is only part of the import bill. Import VAT is unchanged, charged at the rate of the country where the car is cleared — between 19% and 22% in most major EU markets. VAT is calculated on the car's customs value plus the duty, so removing the duty also reduces the VAT. For a car with a customs value of €50,000 imported into Germany at 19% VAT:
If it does not qualify
Duty at 10%: €5,000
VAT at 19% on €55,000: €10,450
Total import taxes: €15,450
If it qualifies for 0%
Duty: €0
VAT at 19% on €50,000: €9,500
Total import taxes: €9,500 — a saving of €5,950
Customs value here means, broadly, the price of the car plus shipping and insurance to the EU border. Freight, port charges and registration come on top; our guide to international car shipping costs covers those.
Condition One: The Car Must Be Built in the US
The zero rate applies to cars of US origin, and origin means where the car was manufactured, not the badge on the bonnet. The EU applies its non-preferential rules of origin, which look at where a product was last substantially made.
- Qualifies: a BMW X5 built in Spartanburg, South Carolina, or a Mercedes-Benz GLE built in Alabama — European brands, American-built.
- Qualifies: a Ford Mustang coupe, built in Michigan.
- Does not qualify: a Ford Mustang Mach-E, built in Mexico — an American brand, but not a US-origin car.
The vehicle identification number is a useful first check: most US-built cars carry a VIN beginning with 1, 4 or 5. On its own, though, it will not settle the question with customs.
Proving Origin: The Hard Part for Used Cars
There is no standard certificate for this. The European Commission's guidance is that origin can be shown with any convincing evidence, but that third-party statements on their own — a "Made in USA" label, an origin line on an invoice, or a chamber-of-commerce certificate — are not sufficient. Customs expect documentation that ties the specific vehicle to US manufacture.
For a new car bought from a dealer, that paperwork usually exists. For a used car it often does not. In the first published ruling on the question, on 7 July 2026, Italy's customs agency confirmed that a certificate of origin is recommended but not mandatory, leaving room for other evidence without saying which. The difficulty is that manufacturer certificates of origin generally only exist for new vehicles, so classics and older used cars can struggle to assemble a convincing file. If origin cannot be shown to customs' satisfaction, the car pays the full 10%.
Evidence worth gathering includes the original purchase and title documents, build records tied to the VIN, and anything else that links that specific vehicle to a US assembly plant.
Condition Two: The Direct-Transport Rule
This is the condition much of the early coverage of the deal has missed, and it matters most to anyone shipping through a hub such as Dubai.
Origin alone is not enough
A separate implementing regulation, (EU) 2026/1422, added a new Article 59a to the EU's customs rules. To claim the zero rate, the importer must also prove that the car was either transported directly from the United States to the EU, or — if it passed through another country — remained under customs supervision there and was not altered beyond what was needed to keep it in good condition.
Evidence that supports direct transport includes a single through bill of lading covering the whole journey, customs transit documents, and non-manipulation certificates issued by the transit country's customs authority, backed by the sales and transport contracts.
What This Means for Cars Shipped from the UAE
A US-built car that has been imported into the UAE, cleared through customs, registered and driven there has left customs supervision. On the most natural reading of the rule, it cannot meet the direct-transport condition and will pay the full 10% on entering the EU, however clearly American its origin. Law firms analysing Article 59a have reached the same view, although no customs ruling has yet tested it for vehicles.
A car that only passes through the UAE is a different case. A vehicle shipped from the US on a through bill of lading, or held under customs control while in transit, may still qualify. That too is untested for vehicles, and the paperwork needs to be right from the moment the car leaves the US.
For many UAE residents there is a better route in any case. If you are moving your normal residence to the EU, transfer-of-residence relief can remove both the customs duty and the import VAT, which is worth more than the zero rate. Broadly, you must have lived outside the EU for at least twelve months and owned and used the car for at least six months before moving, and it cannot be sold, lent or hired out for twelve months after import. The detail varies between countries, so we check eligibility case by case.
What Has Not Changed: Registration and Approval
Removing the tariff does not make an American car road-legal in Europe. The joint statement said the EU and US intended to recognise each other's vehicle standards, but at the time of writing that has not been put into practice, and European road-safety bodies are arguing against it. A US-specification car still needs individual vehicle approval in the country where it will be registered — such as a TÜV inspection in Germany or RDW approval in the Netherlands — and often needs changes to lighting and other equipment. Budget for this alongside duty and VAT.
The deal is also EU-only. The United Kingdom is not covered and applies its own import rules.
Dates to Watch
- 31 December 2026 — the regulation lets the European Commission suspend the concessions if, by this date, the United States is still charging more than 15% on EU steel and aluminium products. US duties on some of those products are currently well above that level, so this is a real risk rather than a formality.
- End of 2029 — the zero rate is set to expire unless it is renewed.
Timing matters: duty is assessed under the rules in force when the car is declared for release into free circulation, not when it was bought or shipped. A car that arrives after a suspension pays the rate that applies on arrival.
How We Can Help
Where a US-built car is still in the United States, the cleanest way to keep the zero rate is a direct sailing to an EU port on a single through bill of lading, with the origin evidence assembled before the car leaves. Our team can arrange that routing, build the documentation file with you, and tell you plainly when a car is unlikely to qualify, so the 10% is in your budget from the start rather than a surprise at the port. Our shipping to Europe page covers destination ports and transit times.
These rules are new and national customs authorities are still interpreting them. This guide reflects the position in September 2026. Tell us the car, where it was built, where it is now and where it is going, and we will set out what you should expect to pay before anything moves.