This article is derived from a telegraphic report dated 1 February 1995, prepared at the American Embassy - Moscow. It discusses auto customs regulations in Russia. The article consists of 5 pages.
()()(-) 01 FEB 95
AMEMBASSY MOSCOW
SUBJECT: IMI: CUSTOMS REGULATIONS ON IMPORTS OF PASSENGER VEHICLES TO RUSSIA
1. SUMMARY. USFCS MOSCOW IS RECEIVING A NUMBER OF INQUIRIES FROM U.S. BUSINESSES SEEKING CLARIFICATION ON CUSTOMS REGULATIONS GOVERNING IMPORTS OF PASSENGER VEHICLES INTO RUSSIA. RELEVANT GOVERNMENT OF RUSSIA CUSTOMS REGULATIONS ARE OFTEN DIFFICULT TO ACCESS. AND, INFORMATION CONCERNING CUSTOMS PROCEDURES EMANATING FROM DIFFERENT SOURCES OUTSIDE OF GOVERNMENT CHANNELS TEND TO CREATE CONFUSION. THE FOLLOWING REPORT INTENDS TO CLARIFY THIS ISSUE AND PROVIDES INFORMATION BASED ON SPECIFIC ARTICLES FROM THE RUSSIAN FEDERATION CUSTOMS CODE AND OTHER CUSTOMS REGULATIONS AS A REFERENCE. END SUMMARY.
2. IMPORTERS OF PASSENGER VEHICLES ARE DIVIDED INTO TWO CATEGORIES: JURIDICAL ENTITIES (FURTHER COMPANIES), AND PHYSICAL PERSONS (FURTHER INDIVIDUALS). THE IMPORT REGULATIONS APPLIED ON THESE TWO CATEGORIES OF IMPORTERS DIFFER. -----------------------------------------PASSENGER VEHICLES IMPORTED BY INDIVIDUALS -----------------------------------------3. ACCORDING TO CUSTOMS ORDER NUMBER 416 OF AUGUST 15, 1994:
A) INDIVIDUALS IMPORTING VEHICLES NOT FOR PRODUCTION OR ANY COMMERCIAL ACTIVITY (BUT FOR PERSONAL USE) SHOULD PAY EITHER FULL RANGE OF IMPORT DUTIES (IMPORT TARIFF, VAT, AND EXCISE TAX), OR THEY SHOULD PAY 5 EUROPEAN CURRENCY UNIT (ECU) EQUIVALENT PER 1 CUBIC CENTIMETER (CC) OF ENGINE SIZE (PARA 2.3 OF CUSTOMS ORDER 416).
B) INDIVIDUALS, PERMANENT RESIDENTS OF THE RUSSIAN FEDERATION WHO STAY ABROAD FOR OVER SIX MONTHS WITHOUT INTERRUPTION ARE ELIGIBLE TO IMPORT ONE VEHICLE WITHOUT PAYING IMPORT TAXES, EXCEPT NEW VEHICLES WITH ENGINE SIZE OVER 1,800 CC (PARA 2.4).
C) INDIVIDUALS, MOVING TO RUSSIA FOR PERMANENT STAY FROM OTHER COUNTRIES ARE EXEMPT FROM IMPORT DUTIES FOR ONE VEHICLE, EXCEPT NEW VEHICLES WITH ENGINE SIZE OVER 1,800 CC (PARA 2.8).
D) INDIVIDUALS, RESIDENTS OF FOREIGN COUNTRIES ARE EXEMPT FROM IMPORT DUTIES FOR TEMPORARY IMPORT OF ONE VEHICLE FOR A PERIOD NOT EXCEED TO ONE YEAR AND ONLY FOR PERSONAL USE OR USE BY THE MEMBERS OF THE FAMILY OF THIS INDIVIDUAL (PARA 2.9).
E) INDIVIDUALS SHOULD SUBMIT TO CUSTOMS OFFICIALS A CUSTOMS DECLARATION WHICH INCLUDES THE RETAIL COST OF THE VEHICLE. APPLICANT SHOULD ALSO SUBMIT DOCUMENTS WHICH PROVE THE VALIDITY OF THE COST. CUSTOMS OFFICIALS MIGHT AGREE OR DISAGREE WITH THE SUBMITTED COST OF THE VEHICLE. IF CUSTOMS OFFICIALS DISAGREE, THEY WILL EVALUATE THE COST THEMSELVES BASED ON PRICE INFORMATION AVAILABLE AT THE CUSTOMS. THE IMPORTER CAN DISPUTE THIS DECISION AND APPLY FOR ANOTHER EVALUATION (PARA 5.1-5.4).
F) THERE ARE CUSTOMS FEES CHARGED FOR THE CUSTOMS PROCEDURE. IT IS 0.1 PERCENT OF THE DECLARED CUSTOMS COST OF THE VEHICLE. THIS FEE IS PAYABLE IN RUBLES (LOCAL CURRENCY). THERE IS ALSO AN ADDITIONAL FEE OF 0.05 PERCENT OF THE DECLARED CUSTOMS COST AND IS PAYABLE IN HARD CURRENCY. VEHICLES IMPORTED FOR INDUSTRIAL OR OTHER COMMERCIAL USE ARE NOT CHARGED AN ADDITIONAL FEE (PARA 5.5).
---------------------------------------PASSENGER VEHICLES IMPORTED BY COMPANIES ---------------------------------------4. VEHICLES IMPORTED BY JURIDICAL ENTITIES SUCH AS COMPANIES, GOVERNMENT AGENCIES, AND OTHER PRIVATE AND STATE ORGANIZATIONS ARE SUBJECT TO PAYING IMPORT DUTIES. THE FOLLOWING IS AN EXTRACT FROM THE LATEST IMPORT TARIFF SCHEDULE ENFORCED BY THE RUSSIAN GOVERNMENT'S DECREE NUMBER 196 AS OF MARCH 10, 1994. HARMONIZED CODE VEHICLE TYPE IMPORT EXCISE
(ENGINE SIZE TARIFF TAX
ENGINE TYPE (PERCENT)
PRODUCT. YEAR)
8702 10 AND OVER PSGS, 30 NO
INCL. DRIVER 8702 20 AND OVER PSGS, NO NO
INCL. DRIVER 8703 PSG CARS AND MINI-VANS 30 35
(EXCL THOSE IN 8702),
RACING CARS 870321900 UNDER 1,000 CC 40 35
GASOLINE
UNDER 2 YEARS OLD 870322900 1,001-1,500 CC 40 35
GASOLINE
OVER 2 Y.O. B70323190 1,801-3,000 CC 46 50
GASOLINE
NEW 870323900 1,801-3,000 CC 46 50
GASOLINE
UNDER 2 Y.O. 870323900 1,801-3,000 CC 40 50
GASOLINE
OVER 2 Y.O. 870323900 1,500-1,800 CC 40 50
GASOLINE
OVER 2 Y.O. 870324100 OVER 3,000 CC 46 70
GASOLINE
NEW 870324900 OVER 3,000 CC 46 70
GASOLINE
UNDER 2 Y.O. 879324900 OVER 3,000 CC 40 70
GASOLINE
OVER 2 Y.O. 870331900 UNDER 1,500 CC 40 35
DIESEL
OVER 2 Y.O. 870332190 1,801-2,500 CC 46 50
DIESEL
NEW 870332900 1,801-2,500 CC 46 50
DIESEL
UNDER 2 Y.O. 870332900 1,801-2,500 CC 40 50
DIESEL
OVER 2 Y.O. 870332900 1,501-1,800 CC 40 50
DIESEL
OVER 2 Y.O. 870333190 OVER 2,500 CC 46 70
DIESEL
NEW 870333900 OVER 2,500 CC 46 70
DIESEL
UNDER 2 Y.O. 870333900 OVER 2,500 CC 40 70
DIESEL
OVER 2 Y.O.
IN ADDITION TO THE ABOVE MENTIONED TARIFF SCHEDULE, A 23 PERCENT VALUE ADDED TAX (VAT) LEVIED ON EACH IMPORTED VEHICLE.
--------------------------------------TEMPORARY IMPORTS OF PASSENGER VEHICLES --------------------------------------5. CUSTOMS ORDER NUMBER 1276 DATED NOVEMBER 10, 1994, DEALS WITH THE TEMPORARY IMPORT OF GOODS (INCLUDING CARS) BY REPRESENTATIVES OF FOREIGN FIRMS OPERATING IN RUSSIA. IT SAYS THAT:
A) REPRESENTATIVES OF FOREIGN FIRMS, BANKS, AND OTHER ORGANIZATIONS WHICH ARE ACCREDITED IN THE RUSSIAN FEDERATION ARE EXEMPT FROM ALL IMPORT TAXES ON TEMPORARY IMPORTS OF PRODUCTS TO BE USED ONLY BY THIS ENTITY AND NOT FOR RESALE (PARA 1). B) THE PERIOD OF TEMPORARY IMPORT IS SET BY THE CUSTOMS OFFICIALS ON THE BASIS OF DURATION OF ACCREDITATION (PARA 2).
6. COMPANIES, OTHER THAN THOSE ACCREDITED, AS DISCUSSED ABOVE, MIGHT ENJOY FULL OR PARTIAL IMPORT TAX RELIEF UNDER REGULATION PROVIDED IN CUSTOMS ORDER NUMBER 328 OF APRIL 25, 1994 WHICH STATES THAT:
A) TEMPORARY IMPORTS OF PRODUCTS LISTED IN ATTACHMENT 1 OF SUBJECT CUSTOMS ORDER ARE EXEMPT FROM ALL IMPORT TAXES IF THE PRODUCT REMAINS IN RUSSIA LESS THAN ONE YEAR (PARA 1). THE FOLLOWING ARE SOME TYPES OF PRODUCTS FROM THE LIST OF ATTACHMENT 1 WHICH MIGHT BE APPLIED TO VEHICLES:
- VEHICLES TO BE USED FOR INTERNATIONAL
TRANSPORTATION OF PASSENGERS AND CARGO, AS
WELL AS SPARE PARTS AND EQUIPMENT FOR THESE
PARTICULAR VEHICLES (PARA 1 OF ATTACH.) - PRODUCTS FOR EXPOSITION AT THE TRADE SHOWS,
TRADE FAIRS, INTERNATIONAL EVENTS, SUCH AS
CONFERENCES, SEMINARS, AND NOT FOR RESALE
(PARA 3) - SAMPLES OF PRODUCTS IMPORTED ONLY FOR THE
PURPOSE OF ATTRACTING CUSTOMERS. THE SAMPLES
SHOULD REMAIN A PROPERTY OF THE FOREIGN
ENTITY, NOT USED FOR RESALE, AND THE NUMBER
OF SAMPLES SHOULD NOT EXCEED TWO UNITS OF THE
SAME TYPE (PARA 10). - PRODUCTS IMPORTED FOR THE PURPOSE OF TESTING,
EXPERIMENTS, EXPOSITION OF QUALITIES AND
CHARACTERISTICS OF THE PRODUCT, AND NOT FOR
RESALE (PARA 13). - PRODUCTS IMPORTED FOR THE PURPOSE OF SPORT
COMPETITIONS, SPORT SHOWS, AND TRAINING, IF
THESE PRODUCTS REMAIN PROPERTY OF FOREIGN
ENTITY (PARA 16).
B) TEMPORARY IMPORTED PRODUCTS OTHER THAN THOSE SPECIFIED IN PARA A OR THOSE SPECIFIED IN PARA A BUT WITH TEMPORARY USE EXTENDED BEYOND ONE YEAR, ENJOY A PARTIAL IMPORT TAX RELIEF. IN THIS INSTANCE, A CUSTOMS CHARGE OF 3 PERCENT OF THE TOTAL COST OF THE PRODUCT WILL BE ASSESSED EACH MONTH. TOTAL COST EQUALS ORIGINAL PRODUCT PRICE PLUS ALL IMPORT TAXES. ADVANCED ASSESSMENT OF UP TO THREE MONTHS MAY BE REQUESTED. IF THE PRODUCT IS RE-EXPORTED, THESE FEES ARE NOT RETURNED. IF THE TEMPORARY IMPORTED PRODUCT HAS TO BE SOLD, THE MONTHLY FEES WHICH HAVE ALREADY BEEN PAID BY THAT TIME ARE INCLUDED INTO IMPORT TAXES TO BE CHARGED BY THE CUSTOMS (PARA 2-6 OF CUSTOMS ORDER 328).
--------------VAT EXEMPTION --------------ACCORDING TO CUSTOMS ORDER NUMBER 30 OF JANUARY 4, 1994, PRODUCTS IMPORTED INTO RUSSIA AS A CONTRIBUTION TO AUTHORIZED CAPITAL OF ENTERPRISES WITH FOREIGN INVESTMENT ARE EXEMPT FROM VALUE ADDED TAX DURING A ONE YEAR PERIOD FROM THE MOMENT OF ENTERPRISE REGISTRATION (PARA 1.1).
(FCS MOSCOW/DRAFTED YMALKOV/APPROVED CA EWEAVER) PICKERING
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