A reduction has been proposed in the growth pace of the localisation of foreign car production

A reduction has been proposed in the growth pace of the localisation of foreign car production

Rossiyskaya Gazeta – The Ministry of Economic Development has issued a departmental draft order, which proposes to set the localisation rate of industrial assembly of automobiles to 45% for the fourth year from the date of entry to the supplemental agreement and to 50% for the fifth year. Currently, a minimum rate of 50% of the components must be manufactured in Russia for the fourth year and at least 55% for the fifth year, as reported by Rossiyskaya Gazeta.

In addition, the document proposes changes to the method of calculation of the production costs of automobiles and their components. Apart from the already sold automobiles, it’s planned to include the components, taken into account in the total primary cost, in the calculation, as well as the unsold vehicles in the warehouses. The calculation of the total price of all exported automobiles and components will be carried out in their turn, at a cost set in commercial and/or payment documents.

The method of calculation will also change for the selling price of component manufacturers. Previously, the prices fixed during the wholesale of automobiles and their components were considered as the selling price, therefore only the legal entities, manufacturing automobiles or units from components, were taken into account. According to the new version of the document, the cost of the component, sold by the manufacturer either wholesale or retail to legal entities, will be called the selling price. Or, for example, to natural persons in retail.

In turn, the calculation of the total cost of the manufactured components, gone for export, will be carried out at a cost, given in commercial and (or) payment documents.