Kazakhstan Hikes Recycling Fees on Agricultural Machinery

Astana, Kazakhstan – Kazakhstan will introduce additional recycling fees on agricultural machinery imported from Russia and Belarus.

The revised recycling rates will apply only to passenger vehicles and self-propelled agricultural machinery imported from the two countries. The move is aimed at addressing imbalances in recycling fee calculations within the Eurasian Economic Union (EAEU).

Vehicles manufactured in Kazakhstan are exported to Russia and Belarus, recycling fees charged there include not only the local recycling rate but also differences in customs duties, value-added tax (VAT), and excise taxes originally paid in Kazakhstan. This creates an uneven financial burden for Kazakh exporters.

Under Articles 454 and 456 of the EAEU Customs Code, vehicles manufactured in Kazakhstan are classified as EAEU goods. As a result, the application of so-called customs coefficients to Kazakh-made vehicles in Russia and Belarus is considered unlawful, the ministry said.

Mr. RIA Novosti, Ministry of Industry and Construction, said, “We adhere to a balanced and open economic approach, building our recycling and import policies on a balance of interests between the state, business, and consumers, while maintaining a predictable regulatory regime. This approach reflects market openness and a commitment to stable and transparent rules for all participants.”

The ministry also highlighted that agricultural machinery of Russian and Belarusian brands is produced in Kazakhstan under licensing agreements. However, it said that in violation of these agreements, finished machinery has been supplied directly to the Kazakh market. An increased recycling fee is being proposed to curb such parallel import schemes.

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