Russia » Economics
Author`s name Michael Simpson

Duties to Deprive Russia of Good Foreign Cars?

Introduction of a new government decree may reduce the number of foreign cars imported to Russia
A governmental decree "On leveling of customs payments made by companies and individuals while exporting second-hand foreign cars to Russia" came into force on July 24, 2003.

The REGNUM news agency learnt at the press-service of the Kaliningrad customs that the number of exported foreign cars abruptly increased within the day of July 22. The average statistical number of exported cars at the Kaliningrad customs is 50 per day. However, on July 22 some of the customs checkpoints registered even 107 and 80 cars within one day. The customs service had to engage more officials for successful registration of all exported cars.
 
REGNUM learnt at Kaliningrad's law enforcement structures that rivals transporting cars from abroad to Russia use any possible means to hamper registration of cars at the frontier checkpoints. The police say that in addition to conflicts, these people often turn expensive cars transported by their rivals upside down. This is often done when transported cars stand in a long line for customs registration.  
 
According to customs authorities, soon after introduction of the new government decree export of foreign cars to Russia will be stopped almost completely. The slowdown will continue within the period of August – September 2003. Introduction of the visa regime by Lithuania and changes made in the transit regulations by Poland may become another negative factor that will influence the volume of exported foreign cars. As majority of foreign cars are exported to Russia for further distribution about the Russian Federation, the above mentioned measures will result in overstocking of the market in the Kaliningrad Region. 

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