Gray Imports Under Threat: Ministry of Industry and Trade Proposes Adjusting Recycling Fee Formula

The changes will limit schemes for understating the cost of cars imported from the EAEU

The Ministry of Industry and Trade has proposed changing the procedure for calculating the recycling fee for cars imported into Russia from the EAEU countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan). The ministry emphasized that the changes are not aimed at increasing the payment, their goal is to create transparent import conditions and exclude schemes for understating customs value and circumventing tax obligations.

Image source Sora

According to the project, for individuals importing cars for personal use, the recycling fee will be calculated using a single formula:

RF = RFstd + Ccd + CVat + CE, where:

  • RFstd — the amount of the recycling fee according to the list of categories of vehicles;
  • Ccd — the difference between the customs duty in the list of the Ministry of Industry and Trade and the actually paid duty;
  • CVat — the difference between VAT in Russia and the VAT paid abroad;
  • CE — the difference between the excise tax calculated based on engine power and the actually paid amount.

Previously, the formula was applied only for customs declaration, now it will also apply to cars processed under a customs warrant (CWO). The ministry noted that the innovation is aimed at eliminating cases of understating the cost and differences in payments between the EAEU countries and Russia, and not at increasing the amount of the fee.

Experts note that the changes will close gray import schemes, especially through Kyrgyzstan, where cars were cleared at preferential rates, which created unfair competition. Adjusting the recycling fee formula will lead to a decrease in the flow of gray imports, an increase in prices and a reduction in competition in the market.

The initiative of the Ministry of Industry and Trade is planned for implementation from April 1, 2026 and is aimed at unifying the calculation of the recycling fee and eliminating circumvention schemes when importing cars from the EAEU.

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Cars Russian Ministry of Industry and Trade