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Duma suggests automakers, importers should pay for car disposal

June 22, 2012, 12:19 UTC+3
The introduction of the disposal charge is prompted by the need to protect the domestic market and preserve jobs
1 pages in this article

MOSCOW, June 22 (Itar-Tass) —— The State Duma this Friday plans to consider and pass amendments at the first reading to the law on waste disposal, suggesting payment for utilization of cars.

One of the authors of the bill, first deputy chairman of the Duma's Committee for Industry Vladimir Gutenev said the initiative was one of compensation measures to minimize possible risks when Russia joins the WTO.

"The introduction of the disposal charge is prompted by the need to protect the domestic market and preserve jobs in the domestic auto-making industry with the joining to the WTO," the lawmaker said.

A new provision will be added the basic law to regulate relations to dispose old cars. The charge will be taken for new as well as used cars. It will be added to the car cost and will be paid by producers and importers. A buyer will pay it only when individually bringing in a car from abroad, the legislator explained.

The mechanism to ensure transport disposal will make producers more responsible for their products, he added.

The draft law sets down the main principles, and the sizes of the charges will be set by the Russian government.

According to the preliminary calculations of the Ministry of Industry and Trade and the Ministry of Economic Development, the base rate may amount to 20,000-45,000 roubles for a new car and 150,000-400,000 for a truck.

The charge for a car with no more than ten passenger seats and weighing no more than three tonnes will be 10,000 roubles. For cars with more powerful engines, it will be two-three times higher, and higher rates will be set for used automobiles.

Gutenev noted that Russia's joining to the WTO envisaged significant simplification and cost reduction for the access of foreign autos to the Russian market. However, used cars from Europe and South-East Asia pose serious threat to the environment in cities, as more than 50 percent of imported used automobiles do not meet the Euro 0 or Euro 1 standards,

Under the conditions, very important are non-tariff measures of protection and special limits that fully conform to the practice of WTO member countries, the legislator noted.

More than 1.5 million units of transport may be subject to utilization in 2013, and the number may rise to 2-2,5 million a year by 2015. Parts of autos will also need disposing, such as storage batteries and tires, 33 million and 12 million units, respectively. It will require construction of appropriate stations to dismantle old autos, shredder plants and utilization facilities all over the country.

The low percentage of the use of utilized materials of cars does not make up for the utilization cost and the cost to create the appropriate infrastructure.

The draft law if passed will come into force on August 1, 2012. The authors want the Duma not to delay the consideration for the law to be finally approved by July 15.

 

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