Russia may shut door to Chinese cars

Shanghai. October 15 (Gasgoo.com) - Just one day after Chinese media reported Russia had announced zero-tariff on the imports of CKD (Completely Knocked Down) vehicles in Russia, there appeared some correction reports in Chinese media last Friday, saying Russia has practically shut doors to Chinese made automobiles.

The correction reports said Russia's zero tariff policy is applicable only to the imports of "streamline assembled" vehicles which involves at least soldering and painting; however, this policy does not apply to the imports of the so-called "screwdriver assembled" vehicles which needs only a screw driver to put auto parts together.

Russian government has brought AVTOTOR, the importer of Chery-made vehicles, to a local court, which may force the company to pay about US$80 mln in overdue tax, China 21th Century Business News reported.

Russian Customs believe that Russia should impose a 25 percent, not 15 percent import tax on Chery made cars because the imported Chery CKD (Completely Knocked Down) vehicles should be considered as full vehicle imports rather than auto parts imports.

 Under the new tariff policy, China 21th Century Business News said, Russia will impose a 25 percent import tax on Chinese made automobile. The 25 percent imports tax will practically force Chinese automakers to quit Russian market. And Chery, China's No 1 automobile exporter to Russia, will be the biggest victim to the new policy.

Chery chief sales representative in Russia, Jin Yige said that he had not noticed  this report and Chery continues to sell about 4,000 vehicles a month in Russian market and that Chery has maintained good relations with Russian government.

In the first half of this year, Russia has imported 38,600 Chinese made cars,  of which 18,558 are Chery  vehicles.