Problems relating to Trade and Investment on Russia
2. Grant of a preferential tariff rates based on increased home production, and/or local procurements |
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Issue |
Issue details |
Requests |
Reference |
| (1) Local Contents Rate Requirement | - On public institutions tender, acquisition of local product certificate is necessary. In recent years, its requirement had tended to grow. Practically, the requirement for minimum 50% localisation is quite a high hurdle. | - It is requested that GOJ will develop dialogues with GOR toward relaxation of the localisation requirement. | |
| (2) No Localisation Incentives | - For furthering local production, car parts manufacturers' entry into Russia and subsequent incentives (such as tariff reduction/exemption) are necessary, whereas none is available as it stands today. (Decree 566 for tariff exemption has expired since 2011, without further incentives on manufacturers entered after 2011.) | - It is requested that GOR establishes new customs duty exemption scheme applicable to newly entering parts manufacturers. | - Cars: Decree 166 - Parts: Decree 566 |
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