Belarus, strategically located in Eastern Europe, has experienced a boom in the importation of used cars mostly from China. Its economic policies and trade relations are shaping up a dynamic automotive market. Consequently, this article analyzes Belarus’ import regulations for used cars from China in terms of import policies, taxation, required documentation, and market insights.

Belarus Automotive Market Overview

The growth in Belarus’ automotive market is fueled by imports of second-hand vehicles. Sales data for 2023 indicate an impressive upsurge in car purchases due to high demand for personal transportation:

•      25,408 units were sold in Belarus in 2023 representing a 47.5% increase compared with previous year. This consisted of 21,761 passenger vehicles and 3,647 light commercial ones.

•      Chinese automotive brands have made significant inroads into the Belarusian market, with a market share reaching as high as 82.6%. Almost 90% of Chinese brand cars sold in Belarus are made by Geely Automobile meaning there is strong preference towards China’s automotive offerings.

Import Policies for Used Cars from China

Belarusian import policies aim to maintain the quality and safety of used cars while encouraging the importation of eco-friendly vehicles:

•      There is no specific age limit for imported used cars, however, vehicles over five years old are subject to higher tariffs.

•      Used cars that were produced before 2007 have to meet Euro 4 emission standards.

•      All imported vehicles must be equipped with ABS, at least one front airbag, and Isofix connectors for child safety seats.

•      In case of electric vehicles that are brought into Belarus by individuals, the nation has implemented a tax-free policy until December 2025 as an instrument to promote green mode of transportation.

Taxation Policy for Used Car Imports

Belarus's taxation policy for used car imports includes a detailed structure of tariffs, value-added tax (VAT), and dismantling fees:

Customs Duty

•      Individual Import: For used cars imported by individuals, the customs duty is determined based on the vehicle's age and value. For instance, the classified duty on cars below 3 years should be paid on the basis of their worthiness which is determined by various ranges starting from 48%, but not lower than a certain amount of Euros per milliliter engine capacity. They are varied as shown below:

      -     Vehicles up to €8,500 are assessed at 54% which cannot be less than €5.5 per ml of engine displacement.

      -     Vehicles up to €16,700 are assessed at 48% which cannot be less than €7.5 per ml of engine displacement.

      -     Vehicles up to €42,300 are assessed at 48% which cannot be less than €2.5 per ml of engine displacement.

      -     Vehicles up to €84,500 are assessed at 48% which cannot be less than €3.5 per ml of engine displacement.

      -     Vehicles up to €169,000 are assessed at 48% which cannot be less than €15 per ml of engine displacement.

      -     Vehicles above €169,000 are assessed at 48% which cannot be less than €20 per ml of engine displacement.

•      Legal Entity Import: In the case of used cars imported by legal bodies, the customs duty is also based on the age and engine displacement. It starts from 23% but not lower than a certain amount of euros per milliliter engine capacity.

Value-Added Tax (VAT)

•      Used cars imported into Belarus are charged a 20% VAT on their value.

•      To encourage the use of electric vehicles, the Belarusian government has stipulated that, before December 31, 2025, the VAT rate for the import of electric vehicles for personal use by individuals is 0%. This preferential policy does not apply to legal entities.

Dismantling Fee

•      The dismantling fee in Belarus depends on importers, age of the vehicles and engine displacement. Dismantling fees are scheduled as follows:

      -     Electric Vehicles (excluding hybrids and certain specified vehicles) have dismantling fees of 554.5 rubles (for cars under 3 years old), 816.7 rubles (for cars aged 3-7 years) and 816.7 rubles (for cars over 7 years old).

      -     Vehicles ≤1000ml engine displacement have dismantling fees of 1652.2 rubles (for cars under 3 years old), 5771.7 rubles (for cars aged 3-7 years) and 8657.6 rubles (for cars over 7 years old).

      -     For other engine displacement vehicles, the dismantling fee increases with the engine size and is determined based on the appropriate amount from Belarusian dismantling fee schedule.

Documentation needs for Imported Used Cars

To ensure conformity with rules, the importation exercise demands an inclusive assortment of papers such as:

•      Bill of lading.

•      Passport and visa.

•      Evidence of insurance.

•      Driving license.

Market Dynamics and Future Outlook

The Belarusian automotive market is expected to grow due to economic development and recovery. It can be noticed that hybrid cars are becoming more popular which might mean that future policies will promote import of ecologically friendly cars. The regulatory framework is expected to evolve to accommodate new automotive technologies and align with global environmental standards. This is good news for the future of the automotive industry in Belarus as it shows the Chinese brands gaining strong foothold in the market and government incentives supporting EVs.

Summary

Belarus's regulatory framework for importing used cars from China is a testament to its commitment to a modern, sustainable automotive sector. Understanding the import policies, taxation rates, and documentation requirements is vital for both Chinese exporters and importers in Belarus. As the market matures and new opportunities arise, these regulations will play a pivotal role in shaping the future of Belarus's automotive industry.

Please note that used car import tax rates and policies may change over time or be adjusted according to the latest regulations from the government. Therefore, it is advisable to confirm the most current tax information with relevant tax and customs authorities before importing.