Posts Tagged ‘customs’

Russia considers raising Import Duty …again

November 20, 2008

UPDATE: RUSSIA TIGHTENS USED CAR IMPORTS

Once again, the Russian government is considering sharply raising Import Duty on used cars to stem the tide of second-hand vehicles entering Russia. Consistently for the past few years Russia has been the top Japanese used car importer, where even last year alone they imported 441,539 used cars and this year looks set to clearly surpass that amount by the end of this year. Being that they import more than four times the amount of automobiles than the next biggest Japanese used car importing country, having Russia exports restricted can hurt this export industry.

The cause of them thinking about raising duties no doubt has multiple factors. For one, Russia has a long history of heavily favoring Lada (a Russia car manufacture) by keeping competition costly with high import costs. Another factors include the desire to get foreign car manufactures to set up plants within Russia (providing Russians jobs), cut the amount of money leaving Russia, and to be less dependent on the used car market.

On the bright side for Japan’s exporters, the idea of raise used car import duty is not new. In fact it has been discussed many times, but dropped when the far-east Russians protested. This is because the majority of the far east Russia relies on Japanese and Korean used cars which are affordable for those living in that market.

Source – Forbes

Russian Car Importers Hold Protest

April 17, 2008

Last Tuesday Russian Car Importers held a protest against changes made starting April 1st in Vladivostok, Far East Russia, which have caused huge delays getting imported vehicles cleared.

On April 1, two customs posts – Vladivostok Auto Transport and Vladivostok Central – were combined into one – Vladivostok Commercial Port – by officials intended to smooth the process. In reality, the reshuffle has caused much chaos, delays, and as a result, money lost. Because of the large backlog and daily storage fees of about $20 per a car, auto businessmen acquire considerable lost which are bringing in double and triple digit numbers of cars each day. Ships are even being delayed as they must wait a few days before they can offload their vehicles.

In protest, traders decorated their vehicles with orange ribbons and the slogan “Car Dealers against Bureaucracy” and marched in front the Far Eastern Customs Department. Importers are look for the government to step in, cut, and normalize the clearance time. April may be a sluggish month for Japanese used car exports to Russia. Businessmen are looking forward to getting back to schedule.

Sri Lanka Customs Revenue Takes Hit

March 20, 2008

Just last month, we reported how Sri Lanka raised import taxes by 10%. This month we are seeing the protest of importers have effect. Instead of raising revenue the government gets from imports, they actually get less.

In 2007, the Sri Lanka Customs made Rs.8 Billion less overall than expected. They expected Rs.283 Billion and only made Rs.275 Billion. While there was an overall increase, income from vehicle imports drop by Rs.11 Billion. They were expecting Rs.26 Billion from vehicle excise tax, but only got Rs.15 Billion.

There are a number of reasons for this. First, in 2006, nearly 70% of car imports were from Japan and this year it was only 46% that were mostly buses and vans. The other imports were coming from places such as China, India, and Korea. This other countries make and sell their cars cheaper, so as a result, that means less income for Sri Lanka.

The second reason for less revenue, is because many car imports are being imported by civil servants which get duty free import permits. As people know, Sri Lanka has among the highest duty rates so getting duty free permits really help imports and really reduce import revenue.

This is not the end of this. If import duties continue to stay high, they can continue to expect less revenue. One official says while the revenue target from motor vehicle imports for 2008 is estimated at Rs. 35 Billion, it will be difficult to make even 40% of that estimate. Hopefully, we can see a change of heart and a drop in the super high import taxing.

For more information on importing into Sri Lanka, visit:
Japanese Used Car Exporting.Info – Importing Help For Sri Lanka

Interact on Japanese Import Forum

January 30, 2008

Hi all readers,

If you need some help on importing Japanese used cars, you should check our sister location:

www.JCarsNow.com/jdm/

It a great place for you to ask questions on many topics:

Buying from Japanese auto auctions or from dealer’s/exporter’s stocks, exporting, shipping, importing, customs, and of course, the cars themselves. Share your importing experiences and suggestions with others. You should find me online there everyday if you need help. Because it is a forum, rather than a blog, you should be able to interact a lot more over there. Enjoy!