The Russian government is closing the channel for importing cars into the Russian Federation from EAEU countries from April 1

From April 1, the Russian government is actually closing the import channel for cars cleared by customs in the EAEU countries. Such deliveries became popular among individuals—“professional sellers”—in 2023, which is why Kyrgyzstan, which has no car factories, became the second destination after China for importing cars into the Russian Federation. The vehicles underwent customs clearance on more favorable terms than in the Russian Federation, which made such offers more competitive compared to official supplies or parallel imports.

The Government of the Russian Federation has approved a scheme according to which underpaid taxes and fees when the customs value of cars imported into the Russian Federation from the EAEU countries is understated will be taken into account as part of the recycling fee. According to resolution of February 13when importing a car from the EAEU into the Russian Federation for domestic consumption, the amount of disposal fee will be calculated using a formula that takes into account the amount of the fee in the Russian Federation, the difference between the customs duty calculated on the basis of the average cost of the car and the duty from the declaration, as well as the difference in VAT and excise tax.

The government stated that this approach will avoid situations where “citizens and companies importing cars cleared by customs in the EAEU countries receive unjustified advantages compared to car owners doing this in Russia and paying the taxes and fees established by law in full.”

The leader among the destinations for the import of new cars in the Russian Federation in 2023 was China, but Kyrgyzstan was in second place – 13.6 thousand cars were imported from the country in December alone, according to Autostat data. In the summer, the Federal Customs Service announced the presence of cases of underestimation of the value of passenger cars when declaring them in other EAEU countries. As a rule, cars cleared through customs in the EAEU were imported into the Russian Federation by individuals—the so-called professional sellers. Official dealers treated such routes with caution.

• Advisor to MCA “Aronov and Partners” Sergei Smirnov notes that in Kyrgyzstan when importing a new car worth €50 thousand with a 3 liter petrol engine with a power of 250 hp. With. the buyer pays a duty of 15% and VAT of 12%: a total of €14.4 thousand (RUB 1.4 million at the current exchange rate).
• Upon import in Russia the single rate will be 48% (but not less than €7.5 per 1 cubic cm), that is, more than 2.3 million rubles, plus you need to pay about 0.9 million rubles. recycling collection

“In Kyrgyzstan, payments and fees are paid less due to more preferential regimes, for example, there is no VAT on electric cars. These preferential regimes are valid for cars intended for use within the country; the import of goods is registered in the name of citizens of Kyrgyzstan, but then the cars flow into the territory of Russia,” explains Sergei Smirnov, recalling that since Kyrgyzstan and Russia are members of the EAEU, they have a common customs border.

The government began to crack down on individual sellers last year. Thus, for individuals, the recycling fee rate is hundreds of thousands of rubles lower than for legal entities. However, from August 1, 2023, a rule was introduced that a car imported at the rate for an individual must be registered to the same person for a year from the date of import, and duties and taxes must be paid at uniform rates until October 29, 2023. Against the backdrop of this innovation, citizens began to complain (in particular, in comments in Telegram channel Ministry of Industry and Trade) that they bought the car for themselves and cannot pay the recycling fee of 1 million rubles. However, even without taking into account the recycling fee, supplies through the EAEU countries could be more profitable due to the difference with Russia in the amount of duties, VAT and excise tax.

Differences in rates and tariffs in different EAEU countries were one of the reasons for the cross-border movement of vehicles by individuals in volumes significantly exceeding their personal needs, says Svetlana Vinogradova, first deputy general director of Rolf. “Such actions could lead to the persons committing them receiving unjustified advantages, while end consumers could face risks caused by underestimation of the customs value of imported cars,” she explains, pointing out that Rolf supports the initiatives of the government and the Ministry of Industry and Trade.

AvtoVAZ adheres to a similar position, pointing out that this step will close “illegal loopholes.” “It is extremely important that the implementation of a consistent policy to protect the domestic market and stimulate investment in domestic production continues,” they add. “The decisions taken are designed to support official business. Now our manufacturers will finally be able to begin full-fledged localization,” agrees Avtodom CEO Andrei Olkhovsky.

Official distributors indicate that supplies to the Russian Federation of Chinese brands of cars with trim levels not intended for the market will now be closed.

Motorinvest cites as an example the Voyah Free they supply. “In China, electric cars are mainly used in the southern regions of the country, so the traction battery of the Free electric version is used with a smaller capacity of 86 kW, the brake calipers are not treated with anticorrosive – in China this is simply not necessary, other electric motors are integrated,” they explain. At the same time, in the Russian Federation, Voyah cars in the “winter” version, which are adapted for long and cold winters, received a conformity assessment: for example, the battery is available with a larger capacity of 106 kW.

In addition to the difference in configurations, difficulties arise with the repair of such machines. Cars imported under such schemes and cleared by customs for individuals were left without warranty and service from the manufacturers, which ultimately became a problem for end consumers, concludes Andrey Olkhovsky.

Let us remind you that from October 1, 2023, it is no longer possible to import cars of Chinese brands into the Russian Federation without going through the distributor. And now, from April 1, cars with an electric motor, even if they are imported from the EAEU countries, need to be cleared through customs only in Russia.

Olga Nikitina