Russia revises rules for collecting scrapping fee from vehicle modifiers, automobiles imported for resale - Industry and Trade Ministry

MOSCOW. Oct 23 (Interfax) - The Russian government has revised the mechanism for collecting the vehicle scrapping fee from automakers that modify the automobiles and chassis of Russian automakers and individuals who import automobiles and resell them within a year.

The Industry and Trade Ministry said that clarifying changes were made to resolution No. 1291, which regulates the vehicle scrapping fee. The changes exempt companies that install superstructures on Russian automobiles or chassis from financial expenses, as the fee will not have to be paid on the final product if it was already paid on the base vehicle or chassis.

The authorities have also clarified the mechanism for administering scrapping fee payments for automobiles imported into Russia by individuals for resale within one year. "If initially the scrapping fee for such an automobile was paid at the discount rate, then in the event of resale within 12 months the buyer will have to pay the additional correct amount of the scrapping fee to the full rate," the ministry said.

These issues were previously administered by the Federal Tax Service, but now they will be handled by the Federal Customs Service.

"In addition, payment of the scrapping fee at the full rate is stipulated for automobiles imported into the Eurasian Economic Union by legal entities and subsequently imported into Russia by individuals," the ministry said.

Russia raised the scrapping fee for the most popular categories of cars imported by legal entities for resale by 70% at the beginning of August.