The government has refused to compensate import duties on auto components

The government has refused to compensate import duties on auto components


 

Vedomosti.- The government will not be compensating the OEMs and component manufacturers with SPIC for import duties on components, as told by the Deputy Prime Minister: Dmitry Kozak to journalists. The current obligation of the government to compensate for duties runs out in 2020, when the last industrial assembly agreement expires, Kozak reminded.

Kozak has noted that the revenues from import duties have already been incorporated into the budget parameters for 2020 – 2022. The government is under the obligation to fulfil all of its duties, however, the authorities are not going to go beyond certain measures, in order not to give rise to dependency, as emphasised by the Deputy Prime Minister. “The businesses must run on their own effectiveness, within the rules set by the state” – Kozak said, as cited by Prime. “Most importantly, the rules should not change constantly and the state behaves in a predictable way” – Kozak added.

Avtovaz, Renault-Nissan-Mitsubishi Alliance, Hyundai and Volkswagen have appealed to the Prime Minister Dmitry Medvedev by a letter in July, asking for compensation for import duties on auto components to car manufacturers, working under SPIC. The government extended a decree on the compensation of import duties on components for car manufacturers operating under industrial assembly contracts, in the beginning of July. Toyota and PSMA Rus are amongst carmakers, who are eligible for the aforementioned compensations.