Vol. 562 No. 1
283 Mr. Sargent asked the Minister for Finance his views on whether the 15% import duty rate on bicycles compared to 0% for coal, briquettes, printers and hard drives, for example, is at variance with any policy to reduce greenhouse gas emissions; and if he will make a statement on the matter. [5561/03]
The rates of customs duties applicable to imported goods are set out in Regulation (EEC) No. 2658/87, as amended, on the tariff and statistical nomenclature and on the common customs tariff. Ireland is bound, as are all other member states of the European Union, by these rates. On occasion, customs duty rates are negotiated through the auspices of the World Trade Organisation.
The normal or full rate of customs duty can vary from 0% upwards. In the case of many products, including bicycles, preferential rates of duty apply depending on their country of origin. Preferential rates of duty are granted by the European Union to products originating in developing countries and the amount charged is reduced or even zero-rated. Details of these rates, the countries concerned and the conditions that apply are available from the Office of the Revenue Commissioners, customs division, Castle House, Dublin. Imports of bicycles from countries where preferential rates of duty do not apply are charged at 15%.
It is not evident that making changes to customs duty rates is the most appropriate way of incentivising environmentally friendly products. The effect of introducing a reduced customs duty may not be evident in the overall price of an environmentally friendly product. In addition, the price impact of any reduced customs duty may not be significant enough to change consumption patterns. If there are no changes in consumption patterns as a result of a tax change aimed at incentivising environmentally friendly behaviour, then such tax changes may not be appropriate.
