Russian Government Bans Parallel Car Imports from EAEU Countries
The Eurasian Economic Union to introduce a unified risk management system
Starting in April, the countries of the Eurasian Economic Union will implement a unified risk management system (RMS) in an effort to combat gray imports, as reported by Russian media. The goal of the RMS is to increase transparency and crack down on illicit practices related to importing cars.
Russian media outlet Vedomosti commented on the new system, suggesting that the prices of imported cars may see an increase as fiscal services will now closely scrutinize the origin of imported cars and trace the entire supply chain from manufacturer to seller and eventually the buyer.
Maxim Kadakov, a car blogger, highlighted the potential impact of the RMS, stating, “If a car was imported into the EAEU territory through the border of Kyrgyzstan by a legal entity, cleared through customs at a preferential rate, and then ended up in the ownership of a natural person in Russia, then there is clearly a scheme with underpayment of customs duties.”
It is important to note that Russia was the driving force behind the introduction of the RMS. In 2023, the EAEU countries accounted for up to 20 percent of all imports of new passenger cars in Russia, with Kyrgyzstan’s share amounting to 6 percent and Belarus at 2 percent. Gray import schemes are being closely monitored, and the Russian treasury is losing out on tax revenue as a result.
The new system aims to increase import transparency, eliminate gray market dealers, and make buyers aware of potential repercussions from government agencies if they engage in illicit import practices. Additionally, the document outlines that customs authorities will be empowered to charge additional customs duties for cars imported from third countries using unfair privileges.
The introduction of the RMS signals a concerted effort by the Eurasian Economic Union to clamp down on gray imports and ensure fair trade practices within the region. The move is expected to have a significant impact on the importation and sale of vehicles across member countries.
