Car customs clearance rates to drop 20% upon accession into WTO

Car customs clearance rates are to drop by 20 percent as Kazakhstan enters the World Trade Organization (WTO), Tengrinews.kz reports, quoting Kazakhstan's Minister for Economic Integration Zhanar Aitzhanova. Today, June 23 Aitzhanova said that Kazakhstan's accession to the WTO implies reducing customs duty on imported vehicles. “Following accession, customs duty rate is supposed to be reduced by 23 -25%. And after a transit period we will further reduce it to 18%", Minister Zhanar Aitzhanova said. “By this we mean lowering tariffs which will be introduced July 1, 2011”. She stated that 2012 has been set as deadline for Kazakhstan to accede into the WTO. "If everything goes as planned - and the plan depends on negotiations with the USA and EU and their wishes - we hope all negotiations will be completed till the end of next year", Aitzhanova said. She noted that customs duty rates for Kazakhstan in WTO is an issue which is to be handled in bilateral negotiations. According to the Minister for Economic Integration, Kazakhstan has yet to complete negotiations with Saudi Arabia and sign a protocol with Mongolia and Argentina. Aitzhanova emphasized that customs union membership is compatible with WTO principles. Over 100 000 previously-owned vehicles have been imported to Kazakhstan from the beginning of the year, Vice Minister of Finance Ruslan Dalenov had written in his Twitter account. Starting from July 1, 2011 customs duties on foreign vehicles imported to Kazakhstani will be levied in accordance with duty rates accepted in the Customs Union of Kazakhstan, Russia and Belarus. For previously-owned vehicles of 5 years old and older, the duty rate will be Euro 4 per cubic centimeter for engines of 1800-3000 cubic centimeters. Consequently, customs duty on an engine of 3000 cubic centimeters will make up Euro 12 000, with VAT standing at 12%. For cars of 5 years old and older with an engine of over 3000 cubic centimeters, the duty rate will stand at Euro 5.8 per cubic centimeter. Consequently, customs duty on an engine of 4000 cubic centimeters will make up Euro 23 000, with VAT standing at 12%. Before July 1, customs duties made up Euro 0.35-0.6 per cubic centimeters, depending on the engine.