Further perspectives for major OEMs localization in Russia

From July 1, 2018, according to the decision of the sub commission on customs, tariff, non-tariff regulation, protective measures in the foreign trade of the government commission for economic development and integration, the abolition of privileges for the imported components for the cars assembly will be effected. The “industrial assembly” regime, allowing automakers to import duty-free components, which are subject to the localization of its manufacturing, was introduced by a decree of the Russian Federation Government in 2005 (No. 166 dated March 29, 2005). However, this act went in contrary to the norms of the WTO, (Russia took WTO membership since 2012), therefore, such agreements will not be extended further.

It should be noted that the stimulation of localization process in the area of production goes on with other tools. This, for example, is the Russian Federation Government Resolution No. 719 of July 17, 2015, explaining the criteria for classifying goods as industrial products that do not have Russian counterparts, which establish conditions, prohibitions and restrictions on the admission of goods originating from foreign countries.

The company SNECI RUSS has extensive experience working with various Russian manufacturers of auto components, their developments. Local suppliers’ database of SNECI is actively used by foreign companies looking for the opportunities to increase the localization index of their production in Russia.

For more information about our services or to contact our experts on localization, please follow this link: SNECI services.