Custom clearance of cars is a real headache for Georgian customers and… for Russian government

Fati Mamiashvili

Georgian drivers, motor-car enthusiasts and importers know perfectly well that custom clearance of cars is a difficult and tiresome process.

Georgia is not a car producing country. Correspondingly only foreign cars are sold on the local market. The market has a non alternative leader – second hand German cars. Though in Georgia there are several auto houses of giant car producers, Georgian customers prefer individually import European cars. Import of foreign cars is a source of income of a definite part of Georgian men. Georgian legislation envisages a seemingly simple way of cars custom clearance: the newer the car is, and the bigger the volume of its engine the more excise and customs taxes are. Besides, the owner of a car has to pay customs duties, fill in 4 copies of the declaration, and go through a checkup.
Correspondingly, customs clearance of expensive cars is costly for a car owner, which entailed increasing of car prices on the market. For example, if the car was manufactured in 2002 and the volume of its engine is 3200 cm3, its owner will have to pay 4439 GEL for its custom clearance.
In spite of it, according to statistical data, this year the number of imported cars exceeds the last year’s data. In January – June 2005, 14066 cars were imported, and in January – June 2004 – 9838 cars.
In January 2004, 1435 cars were imported, in January 2005 – 1664 cars, in February 2004 – 1285 cars, in February 2005 – 1890 cars, in March 2004 – 1456 cars, in March 2005 – 2334 cars, in April 2004 – 1630 cars, in April 2005 – 2509 cars, in May 2004 – 1973 cars, in May 2005 – 2854 cars, in June 2004 – 2059 cars, in June 2005 – 2815 cars. In all 23904 cars were imported in January – June 2004 and 2005.
Besides high taxes, drivers do not like the new rule according to which the money for custom clearance is paid not to a customs officer, but in a bank where he must pay it and receive a receipt. This, of course, requires more time.
Artificial problems have been created in cars custom clearance as well. Now as to hijacked cars. After hijacked expensive foreign cars had been found at the customs several months ago, the control became stricter, but customs officers, in order to protect themselves, took an unauthorized decision to hand over the information concerning all imported cars to the Interpol with the purpose of finding out whether a car was hijacked or not. They explain in the Customs Department that car owners will have to deal with the Interpol only if a customs officer has any doubts. The following is referred to such doubtful cases: forged documents, changed engine number, etc.
Does the Interpol have the right to give information on ordinary citizens concerning a hijacked car? – Of course not. They declare in the Interpol that this kind of information can be given based on the inquiry of the Ministry of Internal Affairs only. Besides finding out whether a car is a hijacked or not requires different periods of time in different countries – from 15 minutes to 2 weeks.
Out of 183 countries that are Interpol’s members now, only 64 ones have an opportunity to find a hijacked car in automatic mode. This procedure requires 15 minutes. But Georgia is not among these 64 countries, that is why with the purpose of searching of hijacked cars Interpol’s subdivisions in other countries have to send an inquiry to the Georgian Interpol, and they will receive a reply no sooner than in 2 weeks.
Thus, a Georgian car owner will have to spend another 2 weeks on finding out whether his car is a hijacked one and being searched by the Interpol or not.
The other extreme is that Interpol does not give out this kind of information to citizens. But customs clearance of a car without a document from the Interpol is almost impossible.
Mass importing of cars has puzzled the Russian government as well. The 3 year plan of motor car industry’s development worked out by the Russian government at the beginning of 2005 envisages increasing of payment for custom clearance of foreign cars from 25% to 35%, cutting down of foreign cars’ import, and increasing of number of domestically produced cars. This decision was taken after, according to the results of 2005, a decreasing indicator of Russian cars sales was observed.
The first quarter of 2005 ended for the Russian automobile market with the following results: in January – March 203,5 thousand foreign cars and 202,1 thousand domestically produced cars. Experts express their concern that in case of continuing of this tendency Russian cars will completely disappear from the market in 2-3 years. According to official data, in March 2005 91,7 thousand second hand foreign cars were exported, which is two times more than in 2004.
It is a fact that Russian cars cannot compete with foreign cars, they are less fashionable, does not have modern design and technical equipment. The Russian government found the following way out: local producers were given a task to design the technique that will meet “Euro 2” ecological standards. By the way, the leading companies are already developing “Euro 4” ecological standards.
The Russian government, in its struggle against foreign cars, is planning to impose restrictions right hand drive cars. In Russia there is a great demand for Japanese cars, 150-170 thousand of Japanese cars are imported to Russia.
According to the changes introduced in the 3 year development plan of Russian motor car industry, the reorganization will apply to not only cars but buses as well. For example, a special clause has been introduced in the plan, according to which bus eats must be equipped with safety belts of new type, and the brake system must be changed.
Staring from 2006 in Russia the changes envisaged by the 3 year plan will become effective. In any case, the price of custom clearance of 3 year old foreign cars will be increased 3 fold. A strict control will be established over new expensive cars. The Russian government declares that each 3 year old car that has had more than one owner is under suspicion.
As to Georgia, though misunderstandings with the Interpol arising during custom clearance have been eradicated yet, Georgian car importers are not insured against this kind of problems. According to the latest data, information on more than 50 hijacked cars is in the database of Georgian Interpol. Some of them have already been found and the investigation is underway. If it is established that your car is really a hijacked one, its rightful owner should notify about it within 45 days, and take it at his own expense. Otherwise the car will taken to the parking lot till its owner appears. A latecomer owner will have to pay the expenses for the 3 months. According to the Georgian legislation, in 3 months, if the owner does not appear, the car becomes a state property and is sold by auction.
In case if Georgian car is found by the Interpol of some other county, its real owner should go through the similar procedures, but according to the legislation of the country in which it was found.