Posts Tagged ‘Tariff’

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

The Bahamas Getting Heat From WTO

July 9, 2008

WTO – World Trade Organization – is an excellent organization to increase trade between participating countries. That why most nation have an agreement with WTO or are trying to join. Of course, free trade must go both ways (export and import) to be truely free. And WTO job is to make sure are countries are fair.

So how does this related to Japanese used car exports and the Bahamas? Well it might not be important to all exporters, but there are some that do export to the Bahamas. For those who do and appreciate small country news, the Bahamas might have to relax it tariffs if they don’t find a good excuse (and maneuvering) on why they should maintain their high tariffs for transport sector imports.

Because 40% of the Bahamas’ imports are transport related (new and used cars, parts, and fuel), they’ve grown used to the extra revenue and need to keep the budget balanced. WTO says this is violation of free trade and an act of protectionism. If the Bahamas’ government doesn’t make a reason to keep high taxes (such as for “enviornmental reasons”), they may be forced to reduce tariff rates for imports.

Vietnam Plays with Tariff Rates, Business Confidence Drops

May 27, 2008

Within the last 16 months, the Vietnamese Government has changed the tariff rate for importing vehicle 5 times.

The current rate of 83% – effective since April 22nd – was particularly effective at dropping business confidence given that it was put into effect on a one day notice. All previous agreements were charged the new rate despite the fact they were made well before anyone new of the new rate.

Luckily for importers and exporters alike, Vietnam not to long ago joined the WTO which put a ceiling on how much the tariff rate can go up. So importers shouldn’t expect more raise unless Vietnam plans to violate their WTO agreement.

Vietnamese Prime Minister Goes After Car Imports

April 7, 2008

The Prime Minister of Vietnam, Nguyen Tan Dung, asked the Vietnamese Ministries of Finance and Industry & Trade to use technical barriers and tariffs to restrict imports of automobiles and automobile components for less than 12-seat cars. Besides the raising of Import Tax done last month, both automobile and automobile components are now on the list of “import-restricted” items.

Attempting to reverse the ever growing trade deficit, the Prime Minister asked that imported goods be classified into three categories: essential, controlled, and restricted. All goods categorized in the controlled and restricted groups will face extra difficulties now.

These technical barriers and tariffs that will be applied include: the raising of import tax rates; limiting the access of importers to foreign currency loans; using technical barriers, etc. Japanese used car exporters should expect a slow down on cars exported to Vietnam when these blockades start coming into effect.