The 2024 Guide to Import Used Cars from China to Russia

The used car market has experienced a rapid increase in the past decade. The available demand prevailed over the domestic supply; therefore, imports were the only way out. China has become the main supplying country of used cars, thanks to the prospects for cheap-oriented, varied cars. In 2023, China shipped 800,000 vehicles to Russia, exports with five-time growth; both countries became each other’s leading export and import counterparts.

The legislation on importing used cars from China to Russia:

- Requirements for importing vehicles from China are based on new regulations that came into force on October 1, 2023. Russian Federation approved new import legislation that directly affected parallel imports, which meant that cars purchased from friendly countries, such as China, had to be imported into the territory by official dealers authorized by the manufacturer and having an OTTC certificate.

- By official notification of the Federal Customs Service of the Russian Federation, effective from April 1, 2024, vehicles produced in China and exported to other countries of the Eurasian Economic Union “EAEU” and re-exported to Russia will be required to pay the difference in the scrap tax.

Russian requirements for imported used cars:

- Cars exported to Russia comply with the Euro V emission standard.

- There are no age restrictions; legal entities are to pay increased taxes for cars over seven years old, and individuals will be taxed for cars produced earlier than five years.

- Vehicles less than three years old require OTTC certification; vehicles older than three years must meet SBKTS certification.

- Emergency call system: mandatory installation of the ERA-GLONASS system with a cost of about 50,000 rubles.

Navigating the Tax and Tariff Landscape:

1. The importation of used cars into Russia requires payment of several taxes and tariffs.

- Importation by legal persons:

- Customs declaration fee: 775-30,000 rubles

- Customs duty: 15%

- Excise tax: 0-1584 rubles/horsepower

- Value-added tax: 20%

- Scrap tax: 81,200-1,235,200 rubles depending on displacement,

360,000 rubles for new energy vehicles

- Importation by natural persons:

- Customs declaration fee: 775-30,000 rubles

- One-time customs duty: 48-54% but not less than 1.5-3.6 EUR/cm3

- Scrap tax: 3,400 rubles for up to 3 liters, 970,000 rubles for up to 3-3.5 liters, 1,235,200 rubles for more than 3.5 liters

2. Tax exemptions:

- Individual immigrants: persons from another country who have permanently migrated to Russia can bring a duty-free used car with a displacement of not more than 1.8L.

- Permanent residents of Russia: permanent residents of Russia who have been living abroad for more than six months can bring a duty-free used car with a displacement of not more than 1.8L

3. Special cases:

-Temporary importation: vehicles temporarily imported and used for not more than one year are exempted from customs duties.

-Use beyond one year: if the vehicle is to be used in Russia for more than one year, 3% of the amount paid for the entire vehicle will be levied per month.

-Import of the legal capital of an enterprise: vehicles imported and registered as the legal capital of the newly registered enterprise within one year are exempt from VAT.

Way of shipping and delivery:

The importers or used car purchasers can also exit from Khorgos in Xinjiang, China transit through the Eurasian Economic Union “EAEU” countries before then going to Moscow if exported western region of Russia. The importer can exit from the port such as Manzhouli in Inner Mongolia, China, or Heihe in Heilongjiang, China to go the far east region of Russia or the central region of Russia.

Relevant Documentation for Vehicle Clearing:

-       Commercial Invoice

-       Customs value declaration

-       Bill of Lading

-       Freight insurance

-       Contract

-       Single Administrative Document (SAD)

To conclude, even though importing used cars from China to Russia in 2024 is a very complicated business, it is a great opportunity if you have a detailed knowledge of the market and its situation. It is also highly recommended that to inquire about Russian local import agents before purchasing cars from China.

Please note that used car import tax rates and policies may change over time or be adjusted according to the latest regulations from the government. Therefore, it is advisable to confirm the most current tax information with relevant tax and customs authorities before importing.