Ukraine
I - 162 - I
There are no restrictions on the import of passenger cars and parts from the United States. Due to Ukraine's Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union (EU), U.S. exporters will need to meet EU regulations and be certified accordingly.
In 2019, the Verkhovna Rada (parliament) proposed cancelling the excise tax on new automobiles, arguing that high taxes in addition to import duties make even the cheapest car unaffordable for local consumers. However, the fiscal constraints caused by the coronavirus make such a step less likely now.
Customs duties for automotive parts and accessories imported from abroad are ten percent. The value added tax (VAT) for automobiles in Ukraine is 20 percent and is applied to all imports. Also, there is an excise tax based on a car's engine capacity and age, as well as a base tariff. Trade restrictions or other non-tariff barriers (such as quotas) do not exist. Shipping costs to Ukraine from the United States start at $2,400 for basic cars and go up to $5,200 for larger vehicles and premium services. There are additional costs that apply once the car arrives, both for import taxes and registration fees. For temporary stays in the country, vehicles are granted two months in Ukraine before they must be registered with the Ministry of Internal Affairs. Vehicles that are shipped to Ukraine must have been manufactured in the past five years.
.
There is a wide variety of vehicle models available in Ukraine, however the market is dominated by European brands, also increasing the need for European parts. Imported global marques have come to dominate the market over the past few years, especially since Ukraine lies just east of the major production hub comprised of the Czech Republic, Slovakia and Hungary. Renault (France), one of AvtoVAZ's owners, has been scoring spectacular gains over the past year and is now vying with Toyota (Japan) for first place. Both hold more than 15% of the Ukrainian market. No other brand has a double-digit share of the market. Several are closely bunched up, including Nissan (Japan, Renault's alliance partner), Skoda (Czech Republic, part of Germany's Volkswagen Group) and Kia (South Korea).
Although small, the market is open and has a large number of players with annual sales of only a handful of units. Ukrainians are also discovering cheaper brands, such as Suzuki (Japan) which is manufactured in Hungary. Ukraine may prove a fertile ground for Chinese proprietary brands, of which Chery has been the most successful. However, Ukrainian buyers continue to prefer large cars. In 2020, three sports utility vehicles (SUVs) or crossovers, the Renault Duster, the Kia Sportage and the Toyota RAV4, remained the top sellers in the Ukrainian market. This reflects the poor quality of roads and great distances. Safety is also a consideration, as highway fatalities per 100,000 vehicles in Ukraine are more than twice as high as the European average.
.
Current Market Trends & Demand
Ukraine
I - 150 - I
There are no restrictions on the import of passenger cars and parts from the United States. Due to Ukraine's Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union (EU), U.S. exporters will need to meet EU regulations and be certified accordingly.
In 2019, the Verkhovna Rada (parliament) proposed cancelling the excise tax on new automobiles, arguing that high taxes in addition to import duties make even the cheapest car unaffordable for local consumers. However, the fiscal constraints caused by the coronavirus make such a step less likely now.
Customs duties for automotive parts and accessories imported from abroad are ten percent. The value added tax (VAT) for automobiles in Ukraine is 20 percent and is applied to all imports. Also, there is an excise tax based on a car's engine capacity and age, as well as a base tariff. Trade restrictions or other non-tariff barriers (such as quotas) do not exist. Shipping costs to Ukraine from the United States start at $2,400 for basic cars and go up to $5,200 for larger vehicles and premium services. There are additional costs that apply once the car arrives, both for import taxes and registration fees. For temporary stays in the country, vehicles are granted two months in Ukraine before they must be registered with the Ministry of Internal Affairs. Vehicles that are shipped to Ukraine must have been manufactured in the past five years.
.
There is a wide variety of vehicle models available in Ukraine, however the market is dominated by European brands, also increasing the need for European parts. Imported global marques have come to dominate the market over the past few years, especially since Ukraine lies just east of the major production hub comprised of the Czech Republic, Slovakia and Hungary. Renault (France), one of AvtoVAZ's owners, has been scoring spectacular gains over the past year and is now vying with Toyota (Japan) for first place. Both hold more than 15% of the Ukrainian market. No other brand has a double-digit share of the market. Several are closely bunched up, including Nissan (Japan, Renault's alliance partner), Skoda (Czech Republic, part of Germany's Volkswagen Group) and Kia (South Korea).
Although small, the market is open and has a large number of players with annual sales of only a handful of units. Ukrainians are also discovering cheaper brands, such as Suzuki (Japan) which is manufactured in Hungary. Ukraine may prove a fertile ground for Chinese proprietary brands, of which Chery has been the most successful. However, Ukrainian buyers continue to prefer large cars. In 2020, three sports utility vehicles (SUVs) or crossovers, the Renault Duster, the Kia Sportage and the Toyota RAV4, remained the top sellers in the Ukrainian market. This reflects the poor quality of roads and great distances. Safety is also a consideration, as highway fatalities per 100,000 vehicles in Ukraine are more than twice as high as the European average.
.
Current Market Trends & Demand