Russia-based car maker joint venture GM-Avtovaz has received the right to import parts duty-free, business daily Vedomosti reported Monday, citing GM-Avtovaz official Irina Shemyakina.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
On December 12, Russian prime minister Mikhail Fradkov signed an order giving GM-Avtovaz a license to import the parts duty-free for seven-years using the so-called “regime of customs warehouse” under the Russian Customs Code, which stipulates the quota for the company’s vehicle production at 99,000 units in the first year of the new customs regime, Vedomosti said.
According to the deputy head of the customs department in the Volga Federal District, it might take about six months after the signing of the order for the license to come into force, Vedomosti reported.
The new customs regime could not influence the price of the vehicles produced at the plant, and the funds saved will be used for the company’s development, a source with GM-Avtovaz told Vedomosti.
This year, GM-Avtovaz is to produce 55,150 Chevrolet Niva and Chevrolet Viva cars, while in 2005, it plans to make 75,000 of these models, Shemyakina said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGM-Avtovaz was set up in 2002 by U.S.’ General Motors Corp. and Russia’s Avtovaz, which both hold 41.5% stakes, and the European Bank for Reconstruction and Development (EBRD), which has the remaining 17% stake.
