Russia Launches Probe into Substandard Low-Priced Parallel-Import Cars

The Russian Federal Customs Service has recently initiated a special action to crack down on the illegal trade of vehicles imported from Kyrgyzstan and Armenia at understated prices. This move directly impacts buyers attempting to evade high tariffs by understating the vehicle costs.

According to Viligenina Senforsenna, the head of the Customs Supervision and International Trade Group at B1 Group Company and an expert of the Customs Policy Committee of the Russian Federation Chamber of Commerce and Industry, the investigation mainly targets car exports from Kyrgyzstan and Armenia to Russia, but cases from other Eurasian Economic Union countries have also been identified.

The consequences for imported cars found with problems include impounding and confiscation for individual buyers and a fine of twice the goods’ cost for corporate legal entities. This action is expected to significantly impact the car exports of Kyrgyzstan and Armenia. Buyers of such “problematic” cars face administrative proceedings and impoundment under Article 16.21 of the Code of Administrative Offenses of the Russian Federation. The General Administration of Customs has established a minimum price “grid” for cars to clear customs, and declaring a cost lower than this grid poses risks of certification and passport cancellation later on.

This strict crackdown by the Russian Federal Customs Service aims to deter illegal car trade and protect Russia’s tax interests. Importers are advised to comply with Russian laws and regulations and declare customs honestly to avoid economic losses and legal risks.

The Russian Federal Customs Administration vows to continue its efforts in combating illegal trade practices, safeguarding consumers’ rights and interests, and protecting the country’s taxation interests. They also emphasize cooperation with other countries to jointly combat illegal cross-border trade activities.

Consumers who have purchased “problem” vehicles are recommended to seek legal assistance to understand their rights and potential remedies. Additionally, buyers should exercise vigilance when purchasing imported cars to ensure legality and compliance.

The incident has drawn the attention of the governments of Kyrgyzstan and Armenia, who plan to hold further talks with Russia to resolve the dispute. They also pledge to strengthen supervision of domestic export companies to ensure compliance with international market laws and regulations.

Overall, this incident serves as a reminder for importers, consumers, and governments to abide by the rules and regulations of international trade. Fair, transparent, and lawful trade activities are vital for ensuring market stability and sustainable development.