Russia Declares Zero Tariffs for CKD Assembly; Chery and Great Wall Applaud

SHANGHAI - October 11, 2007:

The Russian government has declared a long-term zero tariffs policy for CKD (Completely Knocked Down) auto parts imports, Chinese media reported yesterday.

The report also said the zero-tariff policy will only be applicable to auto parts and accessories that are used directly for local or foreign automakers plants in Russia; this zero tariff does not apply to auto parts to be used in aftermarket.

"Some Chinese automakers, such as FAW, Chery and Great Wall, have established manufacturing facilities in Russia, and this is really inspiring for them," said Xu Haiguang, the Assistant General Manager of FAW Import and Export Company.

Currently Russian levies a 25 percent import tariffs for complete vehicles and 15 percent for automotive parts and accessories. Analysts say this policy is clearly designed to promote the automotive industry in Russia.

China exported $460 million worth of automotive products to Russia last year, a growth of 161.8 percent over the previous year, according to China’s Ministry of Commerce.

Of the total, complete vehicle exports increased by 331.9 percent, year on year, to 38,000 units, and the total value of these exported complete vehicles was $350 million, up 312.5 percent from a year earlier. Exports of auto parts increased by 20.7 percent to $110 million.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html