To ask Her Majesty's Government further to the Written Answer by Lord Davies of Oldham on 3 December 2007 (WA 158), what action they are taking to have the import duty on electric-powered vehicles removed. [HL4016]

Government Ministers recognise that the tariff classification of mobility scooters continues to cause serious concern for both importers and end users of the products. The work to pursue a resolution is being co-ordinated by officials from HM Revenue and Customs (HMRC). HMRC has met with representatives from the British Healthcare Trade Association (BHTA) and other interested parties as well as officials from the Department for Business, Innovation and Skills (BIS) to discuss the issue.

Tariff classification matters fall within the competence of the European Community, which has set an import duty of 10 per cent for these vehicles. It is the European Commission's (EC) role to ensure uniform treatment of the same goods by agreeing a common EU position and then presenting that unified view. The UK, via officials from HMRC, has made representations to the Commission to have the classification of mobility scooters referred back to the World Customs Organisation. The EC has declined on the basis that current guidelines provide uniformity of classification. In this context it is important to remember that classification experts, both at the European and the international levels, are not influenced by duty rates. The EC has agreed to consider the introduction of duty-free treatment or a reduced rate of customs duty for mobility scooters. In connection with this the EC has asked member states to respond to a UK request for information about any national production. The existence of production in the EU will influence the decision about any future duty reduction. Eight out of the 27 member states have responded so far, with some production identified in Germany.

In a separate development, a Dutch national court has ruled that a mobility scooter should be classified as an invalid carriage at 0 per cent duty. There was some discussion about this ruling at the European Customs Code Committee in September 2008. The EC has now advised HMRC that a draft regulation to confirm the classification of mobility scooters will be presented for discussion and possibly for voting at the next meeting in July 2009.