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US Trade Representative to monitor application of Russian car tax

THE office of the US Trade Representative (USTR) said it still has concerns about a recycling fee Russia imposes on cars even though the country recently extended the tax to cover domestic vehicles.

In its annual report to Congress on Russia's compliance with WTO commitments, the USTR noted Russia had moved to apply the tax to domestic carmakers after complaints from the EU, Japan and the US.



"Concerns remain concerning the overall level and calculation of the fee," the USTR said. "The United States will monitor the implementation of the new law to ensure its compliance with Russia's WTO commitments."



Russia joined the World Trade Organisation last year and a vehicle recycling fee, originally imposed only on foreign cars, was the subject of the first complaint filed against it under international trade rules.



The tax is meant to compensate for the cost of scrapping old cars and trucks, Reuters noted.



The US is also protesting Russia's ban on meat containing ractopamine residue, part of a feed additive used in the US pork industry, the report said.



The USTR pointed to extra tariffs of more than 26 per cent on imports of combine harvesters, the protection of intellectual property rights on the Internet and export regulations on ferrous scrap as other areas it was monitoring.
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