• Service: Tax & Legal, Indirect Tax, Customs Services
  • Type: Press release
  • Date: 8/7/2012

Utilization fee: additional costs for business 

On 22 August 2012 Russia will become the full member of WTO. From this date the new Customs Tariff of the Customs Union of Russia, Belarus and Kazakhstan, establishing the import duty rates, will enter into force.

According to the new Customs Tariff the import duties in respect of vehicles are lower (e.g. for the passenger vehicles the import duty will be decreased from 30%, but not less than 2.15 euro per cm3 of the engine capacity, to 25%, but not less than 1.8 euro per cm3 of the engine capacity).


At the same time starting from 1 September 2012 the requirement to pay the utilization fee in respect of the vehicles will be introduced (the law “On amendments to the Federal law on waste production and consumption, and article 51 of the Budget Code of the Russian Federation" dated 28.07. 2012 № 128).


The Government of the Russian Federation is currently developing a procedure for assessment and payment of the utilization fees.


According to the draft procedure:

  • Utilization fee will be charged in respect of (i) vehicles produced in Russia, (ii) imported into Russia (both new and used). The utilization fee will not be applied to particular vehicles (for example, cars that are imported from the territory of Belarus and Kazakhstan provided they qualify for the status of the Custom Union* goods).
  • The amount of the utilization fee will be calculated applying the established ratio to the base rate (for passenger cars 20 thousand rubles (approximately EUR 500)).
  • The ratio will depend on the engine size, vehicle weight and it’s seat capacity. For example, for new vehicles with an engine capacity less than two liters the index will be 1.34. Thus, the utilization fee will be 26.8 thousand rubles (approximately EUR 650). The maximum fee may reach 1.8 million rubles (approximately EUR 45,000) per one vehicle.


Car producers may be exempt from payment of the utilization fee if all of the following requirements are met:

  • The producer agrees to utilize the car after the expiration period of its usage.
  • The producer is a legal entity, registered on the territory of the Russian Federation.
  • Producer marks the cars with VIN (on body components (cabs) or chassis).
  • Producer performs car manufacturing under the "industrial assembly" regime or performs particular manufacturing operations (e.g. welding and painting).


The above exemption is not applicable for the car importers.


Impact on business


Utilization fee may constitute significant amount and create additional cost for the companies and consumers even taking into account a positive effect of the import duty rate reduction. Moreover the application of exemption by the car producers may be not beneficial if the cost of the car utilization after the period of its usage will be higher than the utilization fee.


KPMG has experience and is ready to assist in correct estimation of the utilization fee effect on business and provide solutions to minimize negative impact.


* - Customs Union of Russia, Belarus and Kazakhstan.



Vitaliy Yanovskiy

Director, Customs Services

+7 (495) 937 44 77 ext. 13435


Mikhail Komarov

Senior Manager, Customs Services

+7 (495) 937 44 77 ext. 13982


Natalia Kidryaeva

Senior Consultant, Customs Services

+7 (495) 937 44 77 ext. 10019