From January 1, 2020, the cost of customs clearance of cars from  non-EEU countries in Armenia will increase by at least 4-5 fold:  whether the market for used cars is going up

ArmInfo. From January 1, 2020, new customs rules for car registration from non-EEU countries will come into force in Armenia. Therefore, auto-importing individuals increase the import of used cars with a view to selling them profitably in  2020, and experts warn about the riskiness of such investments.

Back in 2015, Armenia became a full member of the EAEU. But with the  obligations of the republic decided to postpone a few. Armenia, as a  newcomer to the integration association, was granted a 5-year  transition period. During this time, Armenia could import a large  quantity of goods in accordance with the requirements of national  legislation. In particular, during the entire grace period, customs  duties on importing cars from third countries at the old tariffs were  kept at 10%, while in the EEU countries the rates vary from 30 to  50%. Already in 2020, the so-called grace period will end and the  import of cars to Armenia will be regulated according to the new  "Common European" rules.

As a result, the number of cars imported to Armenia in 2018 compared  to 2017 increased by 71.2%, and compared to 2016 by 298%. So, in  2016, 16887 cars were imported to the republic, in 2017 - 39282, and  in 2018 imports reached - 67255. Cars are mainly imported from the  USA, Japan, South Korea, Germany and Georgia. The flow is expected to  drop sharply from next year, when the EAEU regulations will be  introduced. With this in mind, many auto-importers - organizations  and individuals deliver cars in unprecedented quantities, and private  traders - even on credit, hoping to resell them at an overpriced  price in 2020, when the "Hour X" comes for cars from 3 countries.

From January 1, cars from 3rd countries will be imported at new  customs rates. For cars, since the release of which no more than 3  years have passed and the value of which does not exceed 8,500 euros  equivalent, customs clearance will be carried out at a single rate of  54% of the value of the goods, instead of the current 32% but not  less than 2.5 euros per 1 cubic cm engine displacement. In this case,  the calculation of two rates will be made and submitted for payment  at the maximum calculation.

For cars which value exceeds 8,500 euros in equivalent, but does not  exceed 16,700 euros in equivalent, customs duties to be paid will be  calculated at a flat rate of 48% of the cost, but not less than 3.5  euros per 1 cubic cm engine displacement. And in relation to cars,  the cost of which exceeds 42,300 euros in equivalent, but does not  exceed 84,500 euros in equivalent, customs clearance will cost at a  flat rate of 48% of the cost, but not less than 5.5 euros per 1 cubic  cm engine displacement.

Customs payments will increase especially for cars with a more  powerful engine and over 5 years old. So, with regard to cars, since  the release of which more than 5 years have passed, the engine  capacity, which exceeds 2,300 cubic meters, but does not exceed 3.000  cubic meters, the customs duty will be calculated at a single rate of  5 euros per 1 cubic cm engine displacement. For cars with engine  capacity over 3.000 cubic meters customs clearance will cost at a  single rate of 5.7 euros per 1 cu. cm engine displacement. Thus, if  today the tax authorities calculate the cost of customs clearance of  a car mainly on an invoice, then from next year this document will de  facto be relegated to the background, and customs officers will be  guided by the age and engine power of the vehicle.

Taking into account the fact that, from third countries,  traditionally, cars have been delivered to Armenia "old" for a long  time, it can be understood that, among other things, business will  become unprofitable, and car dealers will be out of work.

The car importers of physical persons, of which today there are 25  thousand and they cover the "lion's share" of the used car market,  they are already ringing that they will be reduced to 1 thousand  people.

Meanwhile, the chairman of the public organization "Friend of the  driver" Tigran Keyan urges not to succumb to the temptation and not  to buy a car today, so that it will be profitable to sell in 2020.  According to him, all those who hope for a 4-6-fold increase in  prices for used cars are greatly mistaken, since it would be  beneficial for a potential buyer to purchase a car from the passenger  compartment at a price, for example, for $ 15 thousand more than the  same "old" car with a cost of $ 10 thousand.

"Perhaps, in January-February of the next year there will be a price  increase, which the importers themselves can artificially create, but  the market will soon be adjusted, and private dealers will not be  able to provide the desired sales volumes at the planned price," he  said.

Thus, according to the expert, the desire of auto-importers to import  cars in order to enrich them next year is unreasonable. At the same  time, Tigran Keyan calls on the Armenian government to use the new  adjustments in its favor - to invite the world's automakers to  Armenia and organize, if not the production of the cars themselves,  then at least their screwdriver assembly.