Auto Euro Power rally near Verkhovna Rada or "Affordable car for each Ukrainian"

Author : 112.UA 112.UA

Source : 112 Ukraine

A mass action "For an affordable customs clearance of cars" takes place in the heart of Ukraine's capital
20:48, 7 September 2017

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From morning, government quarter in Kyiv is like an entire traffic jam. Hundreds of people with the flags of the public organization "Auto Euro Power" have gathered near the building of the Verkhovna Rada; they beat the improvised drums (sticks and metal barrels) and cry "Affordable car for each Ukrainian!" Dozens of law enforcement officers watch them calmly.

This is how the so-called "100 thousandth" action "For an affordable customs clearance of cars" going on. Its demands, besides what has already been said, are to create a "single window" and simplify the mechanism for customs clearance of cars, including those already imported from abroad; abolition of the restrictions of the Euro 5 and the resale of cars from the EU, as well as the introduction of a moratorium on the prosecution of cars imported from abroad until the adoption of an affordable customs clearance for every Ukrainian.

The organizers of the action expect that up to 3,700 cars will take part in the rally today.

The basis for today's problem was actually created in 2014. Ukraine forbids importing cars, produced after 2010 because it is impossible to clear such a car. Tax clearance of a car, produced after 2010, now costs at least half the cost of the car, which makes the legal import meaningless.

Related: Owners of imported cars rally near Verkhovna Rada

Related: Owners of 850 imported cars at Verkhovna Rada rally, - police

You need to pay a duty (10% of the cost), an excise tax (its size can reach several thousand dollars) and 20% VAT in order to bring here a foreign car. So, for example, if you buy a used Ford Focus Mk2 (2012) in Poland with an engine capacity of 1600 cubic cm and 100.7 thousand kilometers mileage, it can cost 4288 euros. You will have to pay a fee of 428.8 euros; excise duty at a rate of 0.267 euros for each cubic cm - 427.2 euros; tax to the Pension Fund 3% - 154 euros, 20% VAT on the car price together with excise duty and duty - 1029 euros. In general, the Ford Focus will cost 6327 euros.

However, in 2014 parliamentarians allowed importing cars from Europe without customs clearance under condition of every 10 days transit (5 days in case of moving in the zone of activity of one customs house). Such a decision was made for the needs of the Antiterrorist Operation forces in the east of Ukraine. But there was no real mechanisms of verification by the customs, whether the car entered on transit terms, and bringing cars from Europe became a profitable business.

Related: Purchases under threat: Ukraine Customs Service blocks parcels from abroad

So this year, drivers of cars with European numbers were severely fined. In addition, if the car belongs to a foreigner, and the Ukrainian is behind his wheel, the car can be confiscated. A car of a Ukrainian can be arrested if he refuses to pay a fine. If a foreigner brought a car to Ukraine and returned to his homeland without it, Ukrainian law enforcement bodies can apply to the country of the resident with the requirement to fine the offender. Also cars without registration can be put on the wanted list.

It is impossible to establish the fact of violation of customs regulations due to lack of access to customs database data, and therefore police have no legal grounds for detaining a car with European car number. However, the drivers of such cars are frequently detained by the police. If the driver cannot explain the conditions under which he drives the vehicle and cannot show documents, or claims that it is his car, law enforcement officers call the customs officers, who make up the protocols for violation of Art. 485 of the Customs Code of Ukraine, prescribing a fine of up to 300% of customs payments.

Related: Odesa customs may jeopardize a 280 mln USD investition

In July last year, parliament has adopted the bill 3251 - the rate of excise import of cars was significantly reduced until 2018. Previously, you had to pay from 1.09 to 1.44 euros for each centimeter of car’s engine of 1000 cubic centimeters, but it was reduced to 0.102 euros. So, if in 2015 the excise on a car with engine capacity of 1000 cubic centimeters fluctuated within 1090-1440 euros, in July of last year it was reduced to 102 euros. This applies only to cars that meet the Euro 5 standard (to cars manufactured after 2010).

Now Verkhovna Rada has registered four bills, which provide for an increase in the transit of cars. If documents are supported, Ukrainians can legally drive cars with foreign vehicle number for longer than 10 days. Or, as the authors of one of the bills suggest, annually pay 200 euros for the use of such a car.

At the same time, the State Fiscal Service has prepared a bill that provides fines for owners of the cars with foreign vehicle number in the amount of the value of the vehicle (if the car was on the territory of the state for more than 20 days). According to Oleksiy Sivirin, Deputy Director of the Department for Organizing Counteraction to Customs Offenses, Ministry of Finance and Ministry of Economic Development and Trade agreed this document in early August and transferred it to the State Regulatory Service.

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