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Volkswagen Group Rus and the Federal Customs Service Sign an Agreement to Support Exports

On January 23, Volkswagen Group Rus and the Federal Customs Service of the Russian Federation executed an agreement intended to support exports. The agreement was signed by Head of the Federal Customs Service Vladimir Ivanovich Bulavin and for Volkswagen Group Rus – by its General Director Markus Ozegovich and Financial Director Patrick Mayer.

Volkswagen Group Rus will make full use of opportunities provided by the updated regime of “processing in the customs territory”, which provides relief from payment of customs duty for components used in manufacturing of vehicles intended for export. Introduction of the latest adjustments implying waiver of VAT and excise duty will allow the company to significantly increase its export volumes in 2018. Collaboration under the agreement will be targeted at facilitation of efficient cooperation with customs agencies and establishment of transparent and simplified information exchange processes.

As noted by Markus Ozegovich: “Through efficient use of export opportunities, in 2017, Volkswagen Group Rus became one of the biggest automotive exporters in Russia. In 2017, we exported around 25,100 cars, which is a 70% increase against the previous year. Continued collaboration with the Federal Customs Service will allow us to further increase car export volumes and, which is even more important and promising, component export volumes”.

The first export project to be implemented in the regime of “processing in the customs territory” in 2018 covers exports of Kaluga-manufactured 1.6 MPI engines to production facilities worldwide, including in Europe. Engine exports are expected to reach 40,000 units per year. The second Volkswagen Group Rus export project involves exports of ŠKODA OCTAVIA cars manufactured in Nizhny Novgorod to the European Union; the estimated initial volume of exports is 10,000 cars.

About Volkswagen Group Rus

VOLKSWAGEN Group Rus represents six of the global concern’s brands: Volkswagen passenger cars, ŠKODA, Audi, Volkswagen commercial vehicles, Bentley and Lamborghini. In November 2007, VOLKSWAGEN Group Rus began car manufacturing in Kaluga. In 2009, the plant launched full-cycle production. In 2011, VOLKSWAGEN Group Rus and GAZ Group executed an agreement on contracted assembly of Volkswagen and ŠKODA cars at the GAZ plant in Nizhny Novgorod. The plant in Kaluga currently manufactures Volkswagen Tiguan, Volkswagen Polo and ŠKODA Rapid, while the GAZ plant conducts full cycle manufacturing of ŠKODA Yeti, Volkswagen Jetta and ŠKODA Octavia. In 2015, Volkswagen’s automotive company in Kaluga launched an engine plant with an annual capacity to produce 150,000 units. Volkswagen Group consistently implements its investment program in the Russian market. Having invested 1.75 billion euros in its Russian business, Volkswagen is one of the biggest foreign investors in the Russian automotive industry.