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Federal Customs Service of Russia relieves financing companies of car guarantees

25.9.2018 14.02
Press release

Finnish Customs has provided the Federal Customs Service of Russia with details on 21 companies that finance car acquisitions. Finnish Customs has obtained written consent from the financing companies for handing over the information to the Russian authorities.

On Monday 24 September 2018, the Federal Customs Service of Russia replied, after checking the information, that the Russian customs authorities will not require the lodging of guarantees in connection with entries to Russia of vehicles owned by the companies listed by Finnish Customs. The Federal Customs Service has already ordered its regional customs authorities to relieve the companies of the obligation to lodge guarantees.

Finnish Customs has in turn notified the financing companies about the decision taken by the Federal Customs Service.

When necessary, Finnish Customs will add names to the list of companies and notify the Russian customs authorities about the additions. In addition to the 21 financing companies, only one non-financing company provided its information for handing over to the Federal Customs Service. Holders of cars can contact their respective financing companies to check if they are included in the list of companies relieved of guarantees.

BACKGROUND: The Russian Customs Regulations Act entered into force on 4 September 2018. According to the Act, only one foreign-registered vehicle in private use and registered to a single owner can be in the Russian territory at a time temporarily duty free. For any following vehicles arriving in the Russian territory at the same time, a guarantee for the amount of import duties and taxes must be lodged, possibly thousands of euros. This regulation has, in practice, prevented the holders of vehicles owned by financing companies from travelling to Russia. The Federal Customs Service of Russia has suggested that if it receives information on the financing companies in advance from Finnish Customs, it may, at its discretion, waive the lodging of a guarantee for the cars owned by the company in question.

Press Release