Nine month barrier

The government decided to extend duties on foreign cars

The government, as expected, will extend import duties on foreign cars for another nine months. “The decision to maintain the current import procedure was made in relation to both new and used foreign cars; the decision provides for the extension of the current conditions for access to the Russian market for used and new cars,” Minister of Industry and Trade Viktor Khristenko told reporters on Friday. It is expected that the corresponding resolution will be signed by Prime Minister Vladimir Putin in the near future, the minister added.

Increased duties on foreign cars, designed for nine months, came into force on January 12, 2009 and were valid until October 11. As reported, import duties on passenger cars with a service life of one to five years were increased on average from 25 to 30% of the customs value with a proportional increase in the specific rate calculated in euros (per 1 cubic cm of engine volume). In addition, the period for classifying passenger cars as used was reduced from seven to five years. For cars that are more than three years old and the cost of which does not exceed 325 thousand rubles. (except for cars whose country of origin is Russia), the import duty was increased from 48 to 54%. A resolution was also signed to increase duties on the import of new and used cars and trucks by legal entities.

Increasing duties on new cars and introducing protective duties on used foreign cars was called one of the most important anti-crisis decisions in the industry. The Ministry of Industry and Trade noted that this measure had a positive impact on the automotive industry. Russian automakers have long asked to introduce a prohibitive duty on the import of foreign cars, but while the market was growing, they did not find understanding from the authorities. After all, previous increases in duties turned into protests, in particular in the Far East, where used foreign cars form the basis of the car fleet.

But during the crisis, the authorities did not postpone such a decision. As a number of analysts noted, this measure should appeal to many: the state will expand the localization of production of foreign factories in Russia by signing new agreements, and foreign cars produced in the country should become cheaper than imported ones. Therefore, many experts called the decision to extend the duties expected. The industry is still in a persistently difficult situation and needs support. “If in the first nine months this measure did not bring the expected return, since during the crisis there was a significant decrease in those willing to spend money on cars, then now it should be more effective, because the panic has passed, the market decline has ended, and people will gradually begin to buy cars,” - - says Troika Dialog analyst Mikhail Ganelin.

However, the Ministry of Industry and Trade notes that even in the midst of the crisis, the increase in duties had a positive effect: in June 2009, imports of used foreign cars fell 14 times compared to the same period last year, and imports of new cars decreased fourfold, while car production Russia decreased by only two times.

Irina TSYRULEVA