December 28, 2016, 14:23 | Cars
Special measures will be taken if more than 45 thousand cars are imported into Ukraine during the year.
The Cabinet of Ministers approved the procedure for temporarily increasing the customs duty on the import of passenger cars from the EU by 10%. Ukraine will import more than 45,000 cars. Thus, the government wants to support domestic car manufacturers.
We are talking about the procedure for applying special measures for the import of passenger cars into Ukraine (UKTZED code 8703) originating from the European Union in accordance with the provisions of Article 44 of the Association Agreement between Ukraine and EU.
They want to introduce special measures to support the domestic passenger car industry as a result of the gradual reduction of import duty rates on passenger cars of EU origin (on most types over 10 years from 10% to 0%). In particular, this can happen through a temporary increase in import duty rates (no more than 10%, but not higher than the (preferential) import duty rate that was in effect in 2015) on passenger cars originating from the EU.
Special measures can be applied only in the presence of all conditions:
– if the total volume of imports of passenger cars from the EU to Ukraine during the year reaches 45 thousand units, and its specific weight in consumption on the domestic market is more than 20 % (20% for the second year of the Association Agreement with a gradual increase to 25%);
– if the total volume of imports of passenger cars from the EU into Ukraine during the last 12-month period exceeds the maximum volume of all primary registrations of passenger cars in Ukraine for the same period;
– at the same time, significant damage is caused to the national industry, that produces a similar product.
The volume of imports of cars originating from EU countries into Ukraine in 2015 was 38.9 thousand units, and in 9 months of 2016 – 30.6 thousand units.
Thus, if in September 2017, for example, the number of passenger cars imported into Ukraine reaches 45,000 units and other requirements are met, after consultations with the EU, Ukraine will be able to raise the import duty rate to 10% exclusively for the period until the end of 2017.
At the same time, since, in accordance with the schedule of Ukraine, the rate of import duty on passenger cars (new, with an engine volume of more than 1500 cm3, but not more than 2200 cm3 ) originating from the EU in 2017 will be 8.2%, the special duty cannot exceed 1.8%, respectively.
Special measures may be applied during the period from 2 to 15 years of validity of the Association Agreement between Ukraine and the EU.