High offers will cause something else: What will happen to imports of foreign cars after April 1 The government did not postpone blocking Kyrgyzstan’s switch to foreign cars 16:39

Valid from 1 April 2024 resolution The government is neutralizing the benefits of customs clearance of cars imported to Russia through other countries of the Eurasian Economic Union and mainly through Kyrgyzstan, which last year ranked second after China in car exports to the Russian Federation.

Literally a few days before this decision came into force, the Eurasian Economic Commission reported Regarding the postponement of the deadline for the entry into the EAEU of documents regulating customs legal relations by one year, until 1 April 2025.

This message resonated greatly with vehicle suppliers and official dealers who use the EAEU countries as a channel for customs clearance of foreign vehicles. Many have suggested that the transfer is specifically related to the innovations mentioned above. Even the main regulator on this issue, the Russian Federal Customs Service (FCS), to which socialbites.ca contacted for comment, could not figure it out. The Federal Customs Service referred them to the Ministry of Industry and Trade for answers.

The Russian Ministry of Industry and Trade explained to socialbites.ca that this postponement does not apply to additional payments for vehicles passing through customs in the EAEU countries:

The norm, approved by government decree, will come into force on April 1, 2024, as planned.

“The stated statement of the Eurasian Economic Commission has nothing to do with the timing of the entry into force of the amendments approved by the Decree of the Government of the Russian Federation No. 152 of February 13, 2024.

Let us remind you that these changes will come into force on April 1, 2024 and are not retroactive.

The decision also approved a formula under which unpaid taxes and duties will be accrued for subsequent payments as part of the recycling fee,” the press service of the Ministry of Industry and Trade told socialbites.ca.

How will customs clearance change?

According to the decree of the Russian government, unpaid taxes and duties due to underdeclaration of the customs value of cars imported into the country in the EAEU countries will be taken into account as part of the recycling fee due. customs by both individuals and legal entities.

This mainly concerns the so-called “Kyrgyz transition”:

Most sellers and dealers preferred to clear cars in this country because VAT and taxes are much lower than in Russia. Additionally, in Kyrgyzstan, customs officials are more loyal to invoices provided by importers; almost always the estimated value of foreign cars (customs duty is calculated accordingly) is greatly underestimated.

The supply channel provided through Kyrgyzstan gave the final buyer the opportunity to purchase a car that passed through customs in Russia at a price of 20-25 percent cheaper. In Kyrgyzstan, the buyer is charged 15% customs duty and 12% VAT, while in Russia the full tax on a new foreign car reaches 48% of the original retail price.

Vilhelmina Shavshina, head of the customs regulation and international trade group of the B1 group of companies, told socialbites.ca that, in accordance with the government decree, a number of changes have been made to the payment of the recycling fee.

“The rules for the application of recycling collection coefficients have been adjusted (the basic coefficient and the adjustment coefficient depending on the payment of customs duties in the EAEU countries); “A requirement was established for documentary verification of the amounts of customs duty paid during the release of goods into the territory of the EAEU member states, and this was introduced taking into account the discrepancies encountered between information transmitted electronically and information transmitted in paper form,” Shavshina listed specific innovations.

He also announced that the Ministry of Industry and Trade will publish an average price list for imported vehicles and that this list will be mandatory as a reference point in calculating correction coefficients.

Switching to turnkey delivery mode

The increase in the recycling fee for legal entities in 2023 and the current closure of the “Kyrgyz transit” will narrow the buyer market to official dealers and classified websites of the used car market. Dmitry Rogov, founder of the RogovMobil company (supplying cars from abroad), explained to socialbites.ca that now rare samples will be brought from abroad to order from a specific customer.

“In fact, it turned out that importing a car for oneself is no longer prohibited. And importing cars for resale is not prohibited, but subject to heavy taxes. For this reason

“Many people dealing with this import will now be busy with something else,” he said.

– Rogov told socialbites.ca.

It all depends on what was there before: a civilized market. If you want a car that is not officially sold in Russia, you order it yourself, send money abroad and wait a few months without them and without a car. Or there is an alternative; Buy a new Chinese car from an official dealer, he explained.

“The government has made it clear that it does not like importing cars for resale purposes.

For example, we are completely focused on supplying cars on reorder,” Rogov concluded.

Find out in detail which cars are available for order from abroad and are popular in Russia in March. Wrote “socialbites.ca”.