(1) Basic situation

 The Kyrgyz Republic (referred to as Kyrgyzstan) is located in Central Asia, bordering Kazakhstan in the north and China in the east. The capital, Bishkek, has a land area of approximately 199,900 square kilometers and a population of 7.2 million. According to data from the National Statistics Office of Kyrgyzstan, the GDP of Kyrgyzstan in 2023 will be US$13.98 billion, a year-on-year increase of 6.2%, and the per capita GDP is approximately US$2000. According to data released by China Customs, my country is still Kyrgyzstan's largest trading partner. The annual trade volume between China and Kyrgyzstan in 2023 reached US$19.8 billion, an increase of 27.8% compared with the same period last year. Among them, Kyrgyzstan's exports to China reached US$83.18 million, a year-on-year increase of 30%. China's exports to Kyrgyzstan were US$19.72 billion, a year-on-year increase of 27.2%. In terms of China-Kyrgyzstan cooperation, in May 2023, the two sides signed a joint declaration to establish a comprehensive strategic cooperative partnership for the new era, continuously deepening the cooperative partnership. On October 25, 2023, the two governments signed an outline plan for cooperation in adjacent areas and actively promoted the implementation of cooperation projects in economic and trade investment, cross-border transportation, port construction, agriculture, energy and other fields.

 Kyrgyzstan's natural resources mainly include gold, antimony, tungsten, tin, mercury, uranium and rare metals. Among them, antimony production ranks third in the world and first in the CIS, tin production and mercury production rank second in the CIS, and hydropower resources rank third among the CIS countries.

(2) Automobile market situation

 Kyrgyzstan is a left-handed country. The development of the local automobile industry is weak. Automobiles mainly rely on imports and are mainly used cars. Among them, Japanese cars have a higher share in the market. Since 2022, Kyrgyzstan's automobile imports have increased significantly. According to the Kyrgyzstan Economist Network, from January to October 2023, Kyrgyzstan imported a total of 143,000 passenger cars, with an import value of approximately US$2 billion. China has become its largest automobile supplier, exporting a total of 44720 vehicles, with a transaction volume reaching US$688 million. According to statistics from the Ministry of Commerce of China, China will export 71,000 used cars to Kyrgyzstan in 2023. At present, China cars imported into Kyrgyzstan are mainly used for re-export in the Russian market. The huge gap in the Russian automobile market promotes the development of automobile re-export trade in Kyrgyzstan. The local automobile import demand in Kyrgyzstan still needs to be deeply explored.

 Bishkek, the capital of Kyrgyzstan, has long been rated as one of the most polluted cities in the world. In order to solve this problem, Kyrgyzstan actively promotes the development of the new energy vehicle industry. On the one hand, it encourages consumers to use electric vehicles by trying preferential import exchange rates for electric vehicles. On the other hand, it actively encourages China electric vehicle companies to set up manufacturing plants in China. However, there are currently only about 30 charging stations in Kyrgyzstan, most of which are located in the capital Bishkek, and the country is also facing energy shortages caused by insufficient power generation. Insufficient charging infrastructure construction and energy shortage are the main reasons hindering the development of Kyrgyzstan's new energy vehicle industry.

(3) Policies and regulations on used car import

1. Import policy

 Kyrgyzstan only allows the import of left-hand rudder vehicles. Imported used vehicles are no more than 10 years old and meet Euro 2 emission standards or above, and imported vehicles must be inspected. Imported vehicles are divided into temporary imports and permanent imports. Temporarily imported vehicles, including motorcycles, must be exported at the end of the agreed period. Kyrgyzstan encourages the import of second-hand cars of low age, and will impose higher tariffs on second-hand cars older than 7 years old.

2. Tax policy

 Temporarily imported vehicles are subject to a value-added tax of 3% and a monthly fee of 0.15% based on the contract amount signed. Permanently imported vehicles are subject to customs duties and value-added taxes. The customs duties are determined according to the age and displacement of the vehicle, and the customs duties are negatively related to the age of the vehicle:

(1) Second-hand cars that are less than 3 years old are classified as new cars, and tariffs range from 10-15% of the cost price of the vehicle depending on the displacement.

(2) Second-hand cars with a vehicle age of 3-7 years will be charged a tariff of 20% of the vehicle cost value or a tariff of 0.360.80 euros/ml based on the specific vehicle age. Select the larger one from the two tariff options as the automobile import tariff.

(3) Used cars over 7 years old will be subject to a tariff of 1.4-3.2 euros/ml. The value-added tax on the import of used cars in Kyrgyzstan is 12% of the customs price of the vehicle.

(4) In terms of new energy vehicles, the zero-tariff policy on the import of pure electric vehicles in the Eurasian Economic Union region will be extended until 2025. Kyrgyzstan can import 10000 new energy vehicles duty-free every year, and at the same time implement tariff preferences for hybrid vehicles.

3. Documents required for import

·Original ownership certificate and registration certificate

·Original invoice

·Driving license and international insurance policy

·Transport bill of lading

·Copy of passport

·Copy of visa

·Original Bill of Lading (OBL)/Air Waybill (AWB)

·Original technical passport with cancellation mark

·Employment letter

·Letter from the Customs Committee

Source: "China Used Car Export Country Guidelines 2023"

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