Moscow Closes Auto Export Loophole That Had Been a Boon to Chinese Traders

Russia has closed an auto trade loophole that many Chinese middlemen had exploited to skirt customs duties as exports of China-made vehicles to the country have surged.

In February, Russian authorities announced new levies for cars imported from Eurasian Economic Union (EAEU) countries, effectively closing the so-called “grey import” channel that had allowed re-exports of China-made vehicles via low-tariff member states including Kyrgyzstan. The new rules took effect Monday.