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A governmental resolution reducing duties for accessories in the industrial assembly of foreign car models in Russia is expected to come within ten days
A governmental resolution reducing duties for accessories in the industrial assembly of foreign car models in Russia is expected to come within ten days, a source in the government has told journalists. "The resolution has been prepared and approved by the government chairman. He agrees with the approach and the level of duties", the interviewee said. One question remains to be specified: what is to be ranked as industrial assembly. A clear definition of parts, units and components in industrial assembly is to be given, he said. He also said that, in his view, the resolution intends "a substantial reduction in duties". A source in the related agencies told RIA Novosti that it is the reduction of import duties in some commodity positions to 3-5 percent from the present 12-15 percent of the custom value. For some accessories, such as engines, duties are cancelled. The import duty is preserved for components made in Russia, such as tyres. Earlier, the interdepartmental commission for protective measures in foreign trade and the customs-tariff policy recommended to the government reduction of import duties on car components for foreign models. This measure targets the attraction of investments in the domestic automobile industry. Supposedly, in the agreement to be concluded with the investor, the latter will undertake to invest in production at least 200 million dollars and after 12 to 18 months begin car body welding and painting. This is what distinguishes industrial from screw-driving assembly, which is now practiced at some enterprises assembling foreign models in Russia, the source said. The design capacity of conveyers will also be stipulated in the agreements with investors. Earlier, Economic Development and Trade Minister German Gref said in the RIA Novosti interview that agreements with the biggest car-making concerns will be concluded for a definite term up to seven years. During this time investors are supposed to locate production and start investing in the production of car components in Russia. "If not investment then pre-investment boom is witnessed in the sector today", Gref said. "There are some manufacturers who have already made investments in the assembly of foreign models in Russia and we are now at the final stage of talks with several other big investors, who may come to our market already this year". According to Gref, last year Russia's output of cars increased by 10 percent: 250,000 automobiles of foreign and joint make were produced. Gref believes that in 3 to 4 months to come the figure may increase at least 1.5 to 2 times. At the present moment, Russia makes Renault, Ford, BMW, KIA cars. Assembly production in the Russian Federation may be launched by also Toyota, Volkswagen, Daimler Chrysler.
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