Ukraine imposes special import duties on some types of cars.

By bne IntelliNews March 15, 2013
The interagency committee on international trade (MKMT) as of April 13 imposes special duties on the importation of passenger cars with engine capacity between 1,000 and 2,200 cubic centimeters, at the rate of 6.46-12.95% of their cost, reads a statement in Uriadovyi Kurier (Government Courier) newspaper. In particular, the import duties will be imposed on vehicles with engine volumes 1,000-1,500 cubic centimeters at the rate of 6.46% of their cost, and for 1,500-2,200 cubic centimeters at the rate of 12.95%. The commission anticipates effect of the duty to positively facilitate restoration of domestic carmakers' production output and expansion in the number of workplaces. The MKMT based its decision on the results of an inquiry, which showed that the volume of car production fell 78.9% in 2010, while the amount of passenger car imports in quantitative equivalent shrank 71% in 2010 over 2008 but grew 38% in relation to the production output of the Ukrainian car manufacturers. The production of vehicles in January declined 5.8-fold y/y to 832 units. In 2012, car imports in Ukraine grew by 13% y/y and reached USD 3.24bn. Import accounted for 83% of first-time sales in 2012. During the year, 205thsd cars were imported from 66 countries. Russia accounted for 37.494thsd units (18.29%) of imports for USD 333.7mn. Imports from Germany followed with 27.191thsd units for USD 645.6mn. Japan followed with 23.977thsd units for USD 609.6mn. It is likely that the new foreign passenger car market (both imported cars and ones assembled in Ukraine) will grow by some 10% in 2013 (a rise of 6% was seen in 2012 on 2011 to 191,064), while its pace will first depend on the state of the economy as a whole, the director of the strategic development department at Atlant-M Automobile Holding,Oleksiy Tereschenko, has said. According to data from the strategic development department of Atlant-M,the foreign car market in Ukraine in 2012 grew by 6%, while Ukrainian brands (plus Russian ones) were quickly loosing their positions (their sales plunged by 27%), which resulted in the fall of the whole market by 1.5%.

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