Boris Titov proposed to allow Kaliningrad carriers to fly within Russia without additional payment

Commissioner under the President of the Russian Federation for the Protection of Entrepreneurs’ Rights Boris Titov proposed to the government to allow carriers from the Kaliningrad region, placed under the special customs procedure of the free customs zone (FCZ), to operate flights throughout Russia without customs surcharges. Now, in order to carry out transportation between Russian regions, car owners need to pay duties and fees, the amount of which is comparable to the cost of a 10-15-year-old car, said press office Mr Titov.

The press service of the Ombudsman recalls that the free customs zone in the Kaliningrad region coincides with the administrative borders of the region. Local entrepreneurs who purchase imported cars could use a special customs procedure and carry out transportation without paying customs duties and VAT, but preferential terms applied only to flights that start and end in the Kaliningrad region. From April 2022, the customs services of the EU countries banned entry into their territory by cars registered in the Russian Federation and Belarus, which deprived Kaliningrad carriers of a large segment of the market, the press service notes.

For transportation in other regions of Russia, drivers need to complete a standard customs procedure and pay a duty, VAT and a disposal fee calculated at the then cost of a new truck, explains Svetlana Nizhegorodova, Commissioner for the Protection of Entrepreneurs in the Kaliningrad Region, quoted by the press service.

“Moreover, if this amount was calculated in foreign currency, then it can still increase due to the exchange rate difference. Often, the amount of customs surcharges is comparable to the residual value of a 10–15-year-old car or even exceeds it. Entrepreneurs just can’t go for it. It is also impossible to sell a car, because when selling the imposed restrictions will not disappear anywhere, accordingly, there will be few people who want to buy cars with such restrictions, ”said Ms. Nizhegorodova.

According to the regional ombudsman, in the Kaliningrad region there are approximately 1.3 thousand enterprises involved in international road transport. Of the approximately 8,000 trucks in the region, 3,000 do not have the right to carry out transportation across Russia without additional payments, Ms. Nizhegorodova reports the data of the carriers.

In such conditions, Mr. Titov proposed to the government until June 1, 2024 to cancel sanctions for cars that have passed a special customs procedure in the Kaliningrad region under Article 16.19 of the Code of Administrative Offenses of the Russian Federation (“Non-compliance with the customs procedure”), the press service reports. It is noted that this initiative was supported by the Association of International Road Carriers.

“It is hardly necessary to talk about budget losses here, they still will not pay another cost of a used car. They will simply put the cars idle, and the drivers will lose their jobs. And so business activity will continue, the inflow of taxes to the budget. And in the conditions of ”alternative logistics”, these trucks will be absolutely not superfluous for the economy in the eastern direction,” the Ombudsman believes.

Governor of the Kaliningrad Region Anton Alikhanov declaredthat the government supported the initiative put forward by Mr. Titov. He said that the local administration sent a corresponding appeal to the government.

Cargo transportation within Russia in the first quarter grew by 35% yoy, according to the calculations of the ATI.SU freight exchange. At the same time, the demand for the delivery of goods from other countries grew even faster, by 40%. Among the most popular destinations are Kazakhstan (triple growth), Kyrgyzstan (twice). Significant increases were also shown by Armenia (by 79%), Belarus (by 65%), Turkey (by 63%) and Uzbekistan (by 59%).

More details – in the material “The trucks went on friendly routes”.

Erdni Kagaltynov