Friday, May 3 2019 15:22

ArmInfo.Armenia has not applied to the partners in the Eurasian Economic Union, with the deadlines being postponed, new customs rules for car registration not from the EEU  countries will take force. The Minister of Economic Development and  Investments of Armenia Tigran Khachatryan told journalists on May  3.The Minister of Economic Development and Investments of Armenia  Tigran Khachatryan told journalists on May 3.

To recall from January 1, 2020, new customs rules for car  registration from non-EAEU countries will take the force in Armenia.  As a result, customs clearance of cars from third countries will  increase in price by 4- 6 fold. Because of this, auto importing  individuals in Armenia multiply the import of used cars in order to  sell them profitably in 2020, and experts warn about the riskiness of  such investments.

Tigran Khachatryan reminded that when in 2015 Armenia became a full  member of the EAEU, it was decided to postpone the republic's  obligations. 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 range 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.

Today, the authorities of Armenia, listening to the appeals of  citizens, in particular, auto-auto individuals, are discussing a  possible appeal to the EAEU. "The decision to apply - not to apply,  is not yet made. But we all hope that there is such an opportunity.  Let's talk about the format of the appeal when a decision is made in  this direction," he said.

But again, as the minister pointed out, the fact is that Armenia is  still at the stage of so-called exemptions.  "If it was only about  the domestic market of Armenia, most likely, the result would be  predictable. But when our customs clearance is much cheaper than in  the EAEU partner country, and the citizens of these countries buy  cars from us and drive there with Armenian number plates "The  citizens of these countries have a reasonable question - why should  our citizens enrich the budget of Armenia?", the minister explained

To note, due to more preferential customs clearance in the RA, 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, 16.887 cars were  imported into the republic, in 2017, 39.282, and in 2018, imports  reached 67.225. Cars are mainly imported from the USA, Japan, South  Korea, Germany and Georgia.

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.