G/TRIMS/W/146  
 
21 October 2014  
(14-6043)  Page: 1/2  
Committee on Trade-Related Investment Measures  Original: English  
 
 RUSSIA – CERTAIN MEASURES RELATING TO INDUSTRIAL ASSEMBLY  
REPLIES TO QUESTIONS FROM THE UNITED STATES1 
The following communication, dated 17 October 2014, is being circulated at the request of the 
Delegation of the Russian Federation. 
 
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 The Russian Federation adopted a number of  resolutions on 15 January 2014 that 
provide financial support for certain types of  expenses to Russian automobile producers 
that participate in the industrial asse mbly program. These programs are:  
 
  Resolution 29 of 15 January 2014 (support  for expenses related to research and 
development activities and tests); 
 
  Resolution 30 of 15 January 2014 (suppo rt for expenses related to energy 
efficiency); 
 
  Resolution 31 of 15 January 2014 (suppo rt for warranty expenses related to 
complying with Euro-4 and Euro-5 emissions standards); and 
 
  Resolution 32 of 15 January 2014 (support  for expenses related to maintaining 
certain employment levels). 
 
These financial supports were introduced sh ortly after Russia began imposing, through 
Resolution No. 1291, dated 26 December 2013,  a vehicle recycling fee on domestic 
automobile manufacturers that previous ly had only been imposed on foreign 
manufacturers. Hence the United States requ ests the Russian Federation to explain 
whether these support programs are intended as compensation to domestic manufacturers for the new fee.  
 
Reply 
 
The Resolutions of the Government of the Russian  Federation of 15 January 2014 Nos. 29, 30, 31, 
32 are not connected with the recycling fee levied  in accordance with the Resolution of the 
Government of the Russian Federation of 26 December 2014 No. 1291.  
Further, the United States notes that particip ation in the industrial assembly program is 
contingent on use of domestic content in th e manufacture of automobiles. Therefore, the 
United States is concerned that these suppo rt programs may likewise be contingent on 
use of domestic content. For each of the pr ograms listed above, we request the Russian 
Federation to describe who can receive the support, and the conditions for its receipt, and address the following questions:  
 
Q1. Are automobile manufacturers that use im ported inputs eligible to receive support 
under the resolutions listed above?  
 
                                               
1 G/TRIMS/W/134. G/TRIMS/W/146 
 
- 2 - 
 
  Reply 
 
The Russian producers of motor vehicles which use imported automotive parts may receive 
support under the Resolutions of 15 January 2014 Nos. 29, 30, 31, 32. 
 
Q2.  If an automobile manufacturer uses imported inputs, is there a threshold, by 
volume or value, above which that manufactu rer would be disqualified from receipt of 
support under these resolutions? 
 
Reply 
 The conditions for receipt of support under the said Resolutions do not provide for any limitations 
or thresholds, by volume or value, above which the manufacturer would be disqualified from receipt of support. 
 
Q3.  If receipt of support under these resol utions is limited to Russian automobile 
producers, how is the determination made  whether an automobile producer is 
considered to be Russian? 
 
Reply 
 
Support under the said Resolutions is granted to en tities registered on the territory of the Russian 
Federation and producing motor vehicles under the following conditions: 
 
1. in the industrial assembly mode; 
2. in the mode provided for in subparagraph 6 of paragraph 2 of article 10 of the 
Agreement on Free (Special) Economic Zones on the Customs Territory of the Customs Union and the Customs Procedures of the Free Customs Zones of 
18 June 2010.  
 
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