Used Car Export Country Guide Europe - Russia
创建于2024.09.12
Used Car Export Country Guide-Russia
1. Basic Information
The Russian Federation (Russia for short) is located in the north of Eurasia, spanning two continents, Europe and Asia. Its capital is Russia, with a land area of 17.098 million square kilometers and a population of about 146 million. In 2023, Russia's GDP grew by 3.6%, but due to the depreciation of the ruble, its total GDP fell to US$1.99 trillion, failing to enter the top ten in the world. In recent years, the scale and quality of China-Russia economic and trade cooperation have continued to improve. China has been Russia's largest trading partner for 14 consecutive years, and is Russia's largest source of imports of mechanical and electrical products and the largest export destination for beef and seafood. China and Russia are steadily advancing cooperation on major projects in the fields of energy, aerospace, science and technology, and trade settlement and logistics channels are smoother and more convenient. According to data released by the General Administration of Customs of China, in 2023, China and Russia exceeded the trade targets set by the heads of state of the two countries one year ahead of schedule, and the annual trade volume exceeded US$200 billion for the first time, reaching US$240.11 billion, an increase of 26.3%. Among them, China's exports to Russia increased by 46.9%, totaling about 110.97 billion US dollars; Russian commodity imports increased by 12.7%, totaling 129.14 billion US dollars. China's main exports to Russia are household appliances, excavators, automobiles, microprocessor components, clothing, shoes and other fast-moving consumer goods; China mainly imports energy products such as oil, pipeline natural gas, liquefied gas, coal and heavy oil from Russia, as well as minerals, timber, agricultural products and aquatic products from Russia.
Russia is rich in natural resources, with many types, large reserves and a high degree of self-sufficiency. Russia ranks first in the world in terms of land area. Forest coverage accounts for 65.8% of the country's land area, ranking first in the world. Russia ranks first in terms of timber reserves. Russia's proven reserves of natural gas account for 25% of the world's proven reserves, ranking first in the world. Russia's proven reserves of oil account for 9% of the world's proven reserves. Russia ranks fifth in the world in terms of coal reserves. Russia ranks first in the world in terms of iron, nickel and tin reserves. Russia ranks third in the world in terms of gold reserves. Russia ranks seventh in the world in terms of uranium reserves.
2. Automobile Market Situation
Affected by the conflict between Russia and Ukraine, mainstream multinational automobile companies in Europe, the United States, Japan and other regions have stopped exporting new cars to Russia, and related companies' production plants in Russia have been closed one after another. At the same time, the supply of parts for Russia's own automobile brands is heavily dependent on imports. The suspension of spare parts supply from Western countries has led to a break in the supply chain of Russia's domestic automobile industry, a sharp drop in new car production, and a huge impact on the Russian automobile market. In 2022, Russia's automobile sales (including light commercial vehicles) were only 686,000 units, a year-on-year decrease of 58.8%, and the market size has been greatly reduced.
In 2023, with the legalization of parallel import policies in Russia and the entry of a large number of Chinese brand vehicles, the Russian automobile market has recovered. In 2023, a total of 937,000 vehicles were sold, a year-on-year increase of 36.5%. In the Russian automobile market in 2023, the top five automobile groups in terms of market share were Chery Group, Great Wall Motors, Geely Group, GAZ Group and Sollers Group, with market shares of 22.5%, 14.8%, 9.1%, 6.0% and 4.9% respectively. Chinese brand vehicles have become the main force in the Russian automobile market. At the same time, the Russian people are also more positive about Chinese cars. In a survey jointly conducted by ABHTOABTO and Kodix, 360 respondents were positive about Chinese brands of modern models, and more young people aged 18-24 had a positive attitude towards Chinese brands.
In terms of used cars, according to Autostat data, 2.75 million used cars were traded in Russia in the first half of 2023, a year-on-year increase of 26.8%. Among them, the sales of used cars of Russian local brands increased by 9.4%, and the sales of used cars of foreign brands increased by 33.3%. Among the best-selling used car models, the top 9 of the top 10 local brands are all LADA brand models, while overseas brands are mainly Ford Focus, Hyundai Solaris, Kia Rio, Toyota Corolla and Toyota Camry. Chinese brands are not on the top 10. In terms of electric used cars, according to AUTOSTAT data, Russian residents purchased 10,000 electric used cars in 2023, a year-on-year increase of 20.1%. The previous record was 9,273 in 2021. According to data from Avito Automotive Services, sales of Chinese used cars in the Russian market in 2023 increased by 76% compared with 2022.
(III) Policies and regulations on the import of used cars
1. Import policy
Imported cars in Russia must meet Euro V emission standards. There is no age limit for imported vehicles, but high tariffs are imposed on second-hand cars imported by individuals over 5 years old and second-hand cars imported by legal entities over 7 years old. Currently, Russian car imports are generally divided into three types: personal imports, legal entity imports, and parallel imports.
(1) Personal import
When a Russian natural person imports cars of different ages, he or she can go through the import declaration after obtaining the vehicle structural safety certificate (SBKTS certification 2), but the number of cars that each natural person can import each year shall not exceed 1 and the cars cannot be resold within 1 year.
(2) Import by legal entities
When a Russian legal entity imports a car that is more than 3 years old, it needs to obtain a vehicle structural safety certificate (SBKTS certification); when importing a car that is less than 3 years old, it needs to obtain a vehicle type certification (OTTC certification) to prove that the imported vehicle complies with the relevant requirements of the Customs Union + "Technical Regulations on Safety of Wheeled Vehicles" (TR-CU 018/2011).
(3) Parallel imports
At the end of March 2022, the Russian government legalized parallel imports to meet the demand for foreign goods. The Russian Ministry of Industry and Trade pointed out that if a company withdraws from the Russian market, then such brands will be included in the parallel import list, but if the foreign partner resumes supplying Russian companies after fulfilling its contractual obligations, its brand will be removed from the parallel import list. Legal entities that import cars through parallel imports can complete import customs clearance by applying for a single vehicle safety certificate (one-time certification, each batch of each car must be certified, 20-30 days to issue the certification, the certification difficulty is lower than OrTC matching, and no authorization or technical support from the OEM is required).
On October 1, 2023, the parallel import policy will undergo a huge change for friendly countries.
(a) The parallel import policy for vehicles will be abolished, and all vehicles must be imported by official dealers authorized by the manufacturer and having obtained the oTTC certificate; (b) The parallel import policy for electric or hybrid vehicles will be extended to February 1, 2024. For non-friendly countries, the parallel import policy can continue to be used.
After April 1, 2024, Russia will tighten regulations on car imports through Federal Government Decree No. 152., introducing a new method for calculating the price of cars imported from the Eurasian Economic Union (EABU) countries - including Armenia, Belarus, Kazakhstan and Kyrgyzstan. The regulation aims to restrict those who import cars into Russia at lower customs prices and avoid tax losses. This change will have a significant impact on Chinese car exports to Russia. Companies must obtain OTTC certification for imported cars before they can do business; importing Chinese cars will need to comply with strict rules and procedures, including passive safety testing and certification; licenses will be targeted at specific production facilities. This will increase the complexity, cost and duration of the import process.
In addition, Russia also requires that imported cars be equipped with the ERA-GLONASS emergency call system (costing $300-400). However, due to the general public's complaints that the emergency call system cannot be used with airbags and that it is difficult to install on second-hand cars, Russia currently allows imported right-hand drive second-hand cars in the Far East or for residents who have moved to the region not to be equipped with the emergency call system. Eligible vehicles include passenger cars with no more than 8 seats (MI category) and trucks with a maximum weight of no more than 3.5 tons (N1 category), and are limited to personal use.
2. Tax policy
Used cars imported into Russia are subject to tariffs, 20% VAT, consumption tax, customs clearance fees, scrapping and recycling fees, etc. At the same time, the preferential policy of zero tariffs for pure electric vehicles imported into Russia from May 4, 2020 has been discontinued from January 1, 2022, and imported electric vehicles are subject to a 15% tariff.
(1) Tariffs are determined based on the type of importer, age of the vehicle, value of the vehicle, and engine displacement.
(a) Personal import: For vehicles under 3 years old, the customs duty is determined based on the vehicle value.
Tax.
(b) Personal import: For vehicles over 3 years old, the tariff is determined based on the age and displacement of the vehicle.
(c) Imports by legal entities: tariffs are determined based on vehicle displacement and age.
(2) Consumption tax is levied at 0-1302 rubles/horsepower based on the power of the imported used car.
(3) The customs clearance fee ranges from 500 to 100,000 rubles depending on the value of the vehicle.
(4) Scrapping and recycling fees. From August 1, 2023, cars imported into Russia will be subject to a scrapping tax. The specific plan is as follows: the coefficient for passenger cars will increase by 1.7-3.7 times, the coefficient for light commercial vehicles will increase by 2.5-3.4 times, and the coefficient for trucks will increase by 1.7 times.
(a) For individuals importing second-hand cars, the tax factor is determined based solely on the age of the car.
(b) For legal entities importing used cars, the tax coefficient is determined based on the age of the car and the engine displacement.
3. Documents required for import
•commercial invoice
• Customs value declaration
•Bill of Lading
• Cargo insurance
•contract
• Single Administrative Document (SAD), etc.
Source: China Used Car Export Country Guide 2023
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