CN code 8703 23 covers passenger cars with spark-ignition combustion engines with cylinder capacity exceeding 1500 cc but not exceeding 3000 cc. This segment encompasses a wide range of vehicles – from compact class cars (e.g., Volkswagen Golf 2.0 TSI) through mid-size sedans (e.g., BMW 3 Series, Mercedes C-Class) to SUVs (e.g., Toyota RAV4, Hyundai Tucson). Engines in this capacity range produce 120 to over 300 HP and meet Euro 6e/Euro 7 emission standards. Classification under CN 8703 23 has significant tax implications, as in Poland the excise rate changes above the 2000 cc threshold – for engines exceeding 2000 cc, excise is 18.6% instead of 3.1%. Therefore, precise determination of cylinder capacity is critical for correct calculation of tax liabilities.

Importing passenger cars with 1500-3000 cc engines (CN 8703 23) involves significant tax burdens. The customs duty rate for passenger cars from third countries should be verified in TARIC/ISZTAR4. The excise rate is 3.1% for vehicles with engines up to 2000 cc or 18.6% for vehicles with engines exceeding 2000 cc. This means a car with a 1.8 TSI engine (1798 cc) is subject to 3.1% excise, while a car with a 2.0 TFSI engine (1984 cc) also carries 3.1%, but a model with a 2.0T engine (2000+ cc) may be subject to 18.6% depending on exact cylinder capacity. VAT is charged on the sum of customs value, duty, and excise. Total tax burdens when importing a car with an engine over 2000 cc can exceed 40% of the customs value. For intra-EU acquisitions, the same excise rate applies, with declaration and payment conditioning first registration.

The passenger car segment with 1500-3000 cc engines (CN 8703 23) is undergoing intensive powertrain transformation. Regulation (EU) 2023/851 on CO2 standards for passenger cars requires manufacturers to reduce average fleet CO2 emissions of new vehicles to 0 g/km from 2035. During the transition, manufacturers offer increasing numbers of mild hybrid (MHEV) and hybrid (HEV) versions, which retain classification under CN 8703 23 due to the dominant combustion engine. Euro 7 (Regulation (EU) 2024/1257) tightens real-world emission requirements, emission control system durability, and brake and tyre particle emissions. The introduction of low-emission zones in an increasing number of European cities restricts combustion vehicle access to city centres, affecting residual values. For importers, verifying the vehicle's emission standard is critical – vehicles not meeting current standards may face registration restrictions or entry bans.