Posts Tagged ‘Russia’

Russia Tightens Used Car Imports

December 16, 2008

In follow up to our previous blog post, we can confirm used car imports to Russia will have an increase in import duty.

As it was expected, Vladimir Putin has signed the governmental regulation on the increase of import duty on used cars to Russia. The regulation comes into effect in one month since the day of its official promulgation. It is informed that this duty is constituted for the period of 9 months concerning import of automotive engineering, trucks and automobiles.

Import duty on used cars aged from 1 to 5 years rises from 25 to 30 %.

For those who have been importing, you might notice it says 5 not 7 years. Here more on that:

The most disputable question is reduction of maximal import age of cars from 7 to 5. Cars over 5 years will be imposed from 2.5 to 5.8 Euro per 1 ccm import duty. Taking into consideration governmental measures taken on prohibition of car bodies with following parts it is evident that automobile market of Primorye will have hard times soon.

On the positive side, it looks unlikely that RHD (ie Japanese) vehicles will be banned. It is being discussed, but most authorities agree that to ban them would cause to much havoc in the Far East regions of Russia:

…the State Duma authorities discuss the question on imposition of technical regulations on prohibition of right-hand drive cars. But according to the talks of the governor of Primorsky region Sergey Darkin and Secretary of Industry and Trade of Russian Federation Viktor Hrystenko, it is unlikely to happen.

– Source: Vladivostok News

Advertisements

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

Stats Review: JDM Used Car Exports in 1st Half 2008

September 4, 2008

I was able to obtain the statistics of how many used passenger* cars have been export from Japan during January to June. The statistics do not include trucks and other commerical/non-passenger type vehicles.

Overall Used Passenger Exports from January 2008 to June 2008

Car Units: 579,582
Value: ¥352,310,171,000
(or at today’s exchange rate: $3,249,516,575)

Over three billion (milliard) US Dollars! That’s a whole lot of money for used cars alone.

Top 10 Destinations

Rank Country      | Car Units | Value(Japanese Yen)
  1: RUSSIA       | 260,008   | 163,251,031,000
  2: CHILE        | 55,461    | 11,744,217,000
  3: UAE          | 37,167    | 9,321,093,000
  4: NEW ZEALAND  | 35,640    | 17,991,266,000
  5: MONGOLIA     | 14,322    | 4,342,595,000
  6: KENYA        | 13,013    | 7,342,810,000
  7: SOUTH AFRICA | 12,904    | 3,545,133,000
  8: SINGAPORE    | 12,894    | 21,078,435,000
  9: MALAYSIA     | 12,746    | 25,317,559,000
  10: BANGLADESH  | 10,208    | 10,706,168,000

Russia remains #1 way ahead of everyone as Japan is supplying their used car market rapid expansion. Others continue to remain strong, although old partner New Zealand has slowed down its imports since the new emission regulations have taken affect. Newcomers to the Top 10, Mongolia and Bangladesh, have seen recent sharp rises due to mostly political and somewhat economical changes. They’ve replaced Pakistan (19th) – which has gone through extreme political unrest, and United Kingdom (11th) which has seen reduced demand that is possibly related to economic downturn/unrest.

Together, the top 10 represent roughly 80% of the used passenger vehicles exported from Japan and 78% of the total value of the cars. Thus the top 10 importers hold a landslide majority of sales Japanese used car exporters have made.

Top 20 & 50

Adding the next 10 (Top 20) would make it 90% of car units and 88.5% of total cash amount. Counting the top 50 together will make it roughly 99% of both car units sold and total value.

Draw you own conclusions. The data is quite clear, and if your an exporter, you should have a clear idea what to do. If you want to look at the full data, you can do so by going to:

Japanese Used Passenger Car Export Statistics : January 2008 to June 2008

Note: Car Units and Value data for each country comes from Japan Customs Statistics Office. All other data is calculated by me. Percentages and VPUs are rounded to simplify view.

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.

New Year for Russia, New Rules for Importers

February 19, 2008

Latest news from Russia is starting this year, individual importers will be limited 1 car. Now what does that mean?

Very simple. People can’t import more than 1 whole car as a personal import. Importer businesses can continue on no problem, and for the individuals, you’ll have to resort to (but not recommended) importing parts which basically means cars split in half.

So at the moment, importing should see much of a big hit, but if other rules change, things can tighten. And for those not watching the news, Russia will be getting a new president this year so things might change a little.

Changes in Import Markets

January 15, 2008

Russia has seen a recent rise in the number of disassembled cars imported. The used cars are disassembled in Japan and imported as parts, rather than whole vehicles, to benefit from lower tariff rates. This is because Russian Customs office considerable raise the duties for whole car verses car parts. Once it is imported to Russia, a car is reassembled for on road use as a used motor vehicle. Because this has increased dramatically in the recent year (a knock-on effect of the revived/reviving economy), it is said Russia will be taking steps to discourage this “loop-hole” in the rules.

Peruvian importers have had a new regulation for importing used vehicles since the 15th of November, 2007 that put restriction on importing vehicles by allowing used vehicles less than or equal to 80,000km only. Not too bad for them. Many Japanese used cars sold at auctions can run below that limit and still be cheap.

It appears the New Zealand government will indeed put the stricter emission controls scheme into effect starting from the 3rd of January, which is expected to reduce the number of new and old vehicles compared to the previous years. At the requests of importers, they’ve made the ramp-up to higher emission regulations longer than previously set. This may (most likely some say) have an affect on number of imports coming in. Time will tell how long before importers start buying smart.

After all the disappointing news, there is a bright side. Imports are as strong as ever world-wide and people still like JDM cars. Look at all the car that are allowed into countries around the globe. I would predict no loss of ground this coming year as emerging market open up and mature markets get smarter on importing. Of course, that is if they have the knowledge necessary for importing. Something that starts over at Japanese-Used-Car-Exporting.info AKA JUCE.info