Reference
The draft resolution On Scrapping Duties for Wheeled Vehicles and Chassis and on Introducing Changes to Specific Acts of the Russian Government was submitted by the Ministry of Industry and Trade in order to implement Article 241 of Federal Law No. 278-FZ of 21 October 2013 On the Production and Consumption Waste, hereinafter referred to as the Federal Law, which regulates the payment of scrapping duties with regard to wheeled vehicles.
The new version of the Federal Law entered into force on 1 January 2014. Under specific agreements reached with World Trade Organisation partners, Article 241 of the Federal Law orders all market participants without exception, including Russian automakers, to pay vehicle scrapping duties. Moreover, the new version of the Federal Law stipulates the payment of chassis scrapping duties. Currently, Russian automakers that have assumed obligations to scrap their respective vehicles do not pay the above-mentioned duties.
The resolution, which has been signed, brings specific acts of the Russian Government in conformity with the new version of the Federal Law. The following changes are stipulated:
1. Resolution No. 870 of August 30, 2012 On Scrapping Duties with Regard to Wheeled Vehicles, which approved regulations for paying vehicle scrapping duties and a number of other documents, and which had to be approved in accordance with the Federal Law, has been declared null and void.
2. The relevant regulations concerning the collection, calculation, payment and levying of scrapping duties with regard to wheeled vehicles and chassis, as well as the repayment and offset of excessive scrapping duty payments, have been approved. The Federal Customs Service shall monitor payments for foreign-made vehicles being imported into the Russian Federation, and the Federal Tax Service shall do the same for Russian-made vehicles. At the same time, major automakers are eligible for a facilitated procedure for calculating vehicle scrapping duties, and the payments of these duties can be delayed by 45 days.
3. A list of types and categories of wheeled vehicles and chassis being covered by scrapping duty payments, as well as scrapping duty volumes, has been approved.
4. A list of types and categories of wheeled vehicles and chassis, which have been manufactured 30 years ago or more, are not intended for commercial passenger and freight traffic, have been preserved or restored to their original state and are not covered by any scrapping duties, has been approved.
5. Changes to Regulations on Allocating Federal Budget Subsidies to Organisations and Self-Employed Business Persons for the Expenses Incurred during the Management of Waste due to the Loss of Consumer Properties by Wheeled Vehicles for Which Scrapping Duties Have Been Paid (Approved by Resolution No. 520 of 20 June 2013), have been introduced. These changes stipulate the addition of chassis and wheelbases as subject to regulation by the document.
6. Technical changes have been introduced to Resolution No. 938 of 12 August 1994 On the State Registration of Motor Vehicles and Other Types of Self-Propelled Equipment in the Russian Federation.
The decisions that have been made will increase federal budget revenues through the payment of vehicle scrapping duties. The Ministry of Industry and Trade estimates that annual budget revenues derived from vehicle scrapping duties will increase from 54 billion roubles, under the current procedure, to over 200 billion roubles in accordance with the new procedure.
Under Clause 8 of Article 241 of the Federal Law, part of the above-mentioned revenues should be used to create a system for scrapping vehicles, which have expended their service life, including subsidies for expenses linked with the creation of the required facilities and infrastructure. This will ensure the formation and development of this sector in the Russian Federation, create additional jobs in this area of activity, and will also have a positive impact on road traffic safety and environmental protection.