Zero customs clearance "everything". Will there be car imports from abroad?
The president signed a law abolishing "zero" customs clearance, and the document was immediately published in the official press. This means that on July 1, from 00:01, for customs clearance of cars will have to pay payments in full — customs duties, VAT and excise duty. Whether there will be imports of used cars from abroad after the return to taxes of the 2018 model, experts from the Institute of Automotive Research have investigated.
Contrary to all arguments for maintaining "zero" customs clearance, the Cabinet of Ministers proposed, and the relevant committee and the majority of MPs decided to return to full rates of customs duties. In fact, there was a "rollback" to the customs clearance system, approved by the previous convocation of the Verkhovna Rada in autumn 2018 under public pressure — the movement of owners of the so-called "Eurobills".
Imports will be suspended
Experts from the Institute of Car Market Research are convinced that such a decision will "freeze" the import of used cars from abroad and will lead to higher car prices in Ukraine. Most cars worth up to $ 5,000 — and such cars are most in need — will not make sense to clear customs at "new-old" rates.
Excise duty on the import of such cars can be 200-300% of their value, which is economically unprofitable. Therefore, instead of tens of thousands of imported used cars per month, only a few thousand will be imported, and instead of additional revenues, the budget will receive only losses.
At the same time, the worst indicators should be expected in August and September, said Levko Prokipchuk, former head of Lviv Customs and an associate expert of the Institute of Car Research on the practical application of customs legislation.In July, some of the cars that did not have time to do so after "zero" customs clearance will be forced to be registered. In particular, those whom the news has already caught at the border or in the queue at the customs terminal.
If there are no changes in the system of accrual of customs duties, only the following categories of used cars will be imported in small quantities in the future:
- Cars from America. The lower price of the car "there" in comparison with the European market makes such a step still more or less profitable. In addition, there are a significant number of vehicles that have been forced to "hang" in Europe due to the temporary shutdown of Ukrainian ports.
- Expensive cars. We are talking mainly about cars under 5 years old and the premium segment. Since taxes on such cars are only 35-40% of their value, they will continue to be imported.
- Electric cars. The only payment left for a car with an electric motor is excise duty, which is 1 euro per kilowatt of battery. The fee to the pension fund for electric cars was abolished on July 1 at the same time as the abolition of "zero" customs clearance.
- Trucks, buses and special equipment. The number of imports of these categories of transport has always been much lower than others, but the need for them remains high.
How it will affect the domestic market
Demand for cars in Ukraine will always be, explains Ostap Novitsky, an analyst at AUTO.RIA and co-founder of the Institute of Automotive Research . The main reason for this is the lack of cars in our country. The level of motorization in Ukraine is the lowest in Europe: 250 cars per 1,000 people against 600 in the European Union. Therefore, Ukrainians will continue to buy cars, the only question is what and at what price, says the expert.
For the first few months after the abolition of "zero" customs clearance, Ukrainians will buy cars on the domestic market. However, in parallel with the reduction of supply in the market of cars brought "below zero", car prices in Ukraine will gradually increase. First of all — on popular models of cars. By the end of the year, the rise in prices could reach up to 30% of their value and even more if the crisis and shortage of cars in the world car market worsens.
What can change the situation?
The situation could be corrected by "customs clearance in a smartphone" with the help of "Action", said the head of the Institute of Car Research Stanislav Buchatsky. The mechanism proposed by the Cabinet of Ministers proposes a global change in the philosophy of importing used cars from abroad — automatically, without intermediaries and corruption.
The main advantage is the predictability of the cost of car customs clearance, as well as speed and convenience. Despite the fact that the formula in "Action" is not "zero" customs clearance, but on average from 5% to 70% of the cost of the car depending on its characteristics, such a system could suit all three parts of society — the public, the state and business.. After all , equality, simplicity and transparency of the system can be a greater advantage than the complete absence of taxes, but with a significant number of bureaucratic obstacles.
The unanswered question is why the transition to customs clearance in "Actions" did not take place simultaneously with the abolition of "zero" customs clearance. Such a step would not cause such a degree of discussion and negativity as a return to the customs system in 2018, the expert is convinced.
What to do to those who did not have time?
If you still have a problem and you do not have time to clear the car for "zero" customs clearance, and are looking for what to do with the car, there are several options for solving this problem, explains Julia Rykovskaya, head of WEST AUTO HUB, a member of the Research Institute car market.
1. Leave the car in Poland. Here you can either sell it or leave it in the parking lot (cost — 20 zlotys per day).
2. Make a re-export, ie take the car back abroad without customs clearance.
3. Transfer to a customs warehouse or STZ for temporary storage. This will help save time and raise funds for customs clearance.
4. Give in favor of the state. Cars are very much needed by our army now.
5. To clear customs according to the usual procedure, having paid in full all customs payments.
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