Importing Used Cars from
Japan to Russia
Regulations and Procedures

Introduction:

The Russian automotive industry has faced significant challenges due to Western sanctions and production disruptions. As a direct consequence of this, the demand for brand-new automobiles has decreased, which has resulted in an increase in the importation of pre-owned automobiles, particularly from Japan. This article explores the import procedure, regulations, and market trends for used car imports from Japan to Russia.

Factors Driving the Increase in Used Car

Imports from Japan Russia's domestic car industry has been adversely affected by Western sanctions, resulting in a decline in sales of new cars. Consequently, the demand for used cars, especially those imported from Japan, has witnessed a substantial rise. Japan accounts for approximately 76% of the imported used car market in Russia. Several factors have contributed to this trend, including the exemption of used vehicles from sanctions, the strong ruble, and the preference of Russians for high-quality Japanese cars.

Impact of Sanctions and Logistical Challenges

Sanctions imposed on Russia have affected the country's automotive industry, including the supply of certain materials used in car manufacturing. Consequently, domestic production has declined, leading to a shortage of new cars in the market. These challenges have not only increased the demand for used cars but also caused prices to rise by approximately 10% since the beginning of the year.

Import Procedure and Regulations

When importing used cars from Japan to Russia, several rules and regulations must be followed. The key points include:

1. Age Restriction: Importing cars older than 5 years is prohibited.

2. Destination Ports: The main ports for importing used cars are St. Petersburg and Vladivostok.

3. Shipping Method: Roll-on/Roll-off (RoRo) is the preferred shipment method, with a weekly vessel schedule.

4. Inspection Requirements: No inspection is required for importing used cars.

5. LHDV: Importation of automobiles with left hand drive is permitted.

Import Duties and Taxes

Import duties and taxes are essential considerations when importing used cars from Japan to Russia. The applicable taxes include:

• Import Tax: A 25% import tax is levied on the vehicle's value.

• Value-Added Tax (VAT): A 20% VAT is imposed on the vehicle's value.

• Accredited foreign companies and foreign residents in Russia may be eligible for tax exemptions under specific circumstances.

Market Trends and Future Outlook

 The surge in used car imports from Japan to Russia has been driven by the scarcity of new cars due to production disruptions and sanctions. The preference for Japanese vehicles, perceived reliability, and favorable exchange rates have also contributed to this trend. However, uncertainties regarding the political situation and potential tightening of sanctions pose challenges to future exports.

Conclusion:

The Russian automotive industry's struggle with Western sanctions and production disruptions has led to a surge in the import of pre-owned automobiles from japan. The exemption of used vehicles from sanctions, coupled with favorable exchange rates, has made Japanese cars highly sought after in Russia. The import procedure involves adhering to age restrictions, utilizing specific ports and shipping methods, and paying import duties and taxes. Understanding these regulations is crucial for individuals and businesses involved in importing used cars from Japan to Russia. As the market dynamics continue to evolve, it is important to stay informed about the changing landscape of the Russian used car import industry.

Disclaimer: Regulations and details are subject to change. The information provided above is for reference purposes only. Those wishing to import a vehicle to this country should consult with a domestic customs broker or the relevant authorities before making any import decisions.