Russia Simplifies Customs Procedures for Ford Factory in Vsevolozhsk, Leningrad Region

Russian customs authorities and the Ford company have agreed to simplify the customs procedure for the supply of parts to the Ford factory in Vsevolozhsk, Leningrad Region. According to the customs authorities this cooperation with the Ford factory in Vsevolozhsk was ordered by President Putin and is designed to attract investment in the Russian car-making industry.

At the Ford factory in Vsevolozhsk there is storage space for Ford Focus car parts which are not subject to duties and taxes. The Russian customs authorities along with the North-Western Customs Department have made plans to create 'clear' customs requirements for the Ford storage space. In particular this would include simpler customs regulations. Every quarter Ford will make a declaration to the customs authorities of the number of cars issued, regardless of the model.

However, the customs authorities insisted that records of the net costs of production must include those production costs incurred on Russian territory, which by 2005 should reach 50%. At Russian Ford's request the customs authorities have agreed to make this process easier by canceling the declaration of car parts produced in Russia.

Furthermore, the customs authorities and the transport police department of the Russian Interior Ministry have created a document to regulate the registration of cars issued by the Ford factory in Vsevolozhsk. Experts believe that the new laws will enable the factory to function uninterrupted and the simplification of the customs procedure will stimulate the growth of car production in Russia.

The Ford factory opened in Vsevolozhsk in July 2002 and started selling cars on October 3. The factory can potentially produce 25000 cars a year. Investment in Ford has reached USD 150 million. The Ford Focus is produced in 3 different models : Sedan, Hatchback, Universal.

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