Ukraine's Economic Development and Trade Ministry has proposed to annul earlier imposed restrictions for automobile makers that import goods for industrial production at a zero rate aiming to stimulate Ukrainian vehicle manufacturers.

According to a draft government resolution posted on the ministry's website, the amendments would be made to the rules for defining imported goods for industrial production of vehicles.

It is proposed to annul all restrictions for production localization level: according to the rules revised in 2013 enterprises, implementing the eight year program to create vehicle production facilities (welding, dyeing and assembling), were to reach 20% localization in the fourth year and 50% in the eighth year.

According to an explanatory note to the draft, at the moment when the programs were approved Ukraine had 10% imports duty on cars, the special duty on passenger cars with 1-2.2 liter engines for hulls used in industrial assembly was EUR 109 (it doubled in 2014), and the excise duty on passenger cars was collected.

In 2015, the conditions changed. The special duty on passenger cars fell by 67%, and the 5% additional duty on spare parts for passenger cars was introduced.

"All these [as well as hryvnia devaluation, the absence of sales on the domestic and foreign markets] resulted in the figure of only 9.5% of the 2013 volume or 4,340 vehicles," reads the note.

The rules are set for imports of goods for manufacturers of motor vehicles with 8701-8705 tariff headings (passenger cars, trucks, special-purpose vehicles, buses, trolleybuses, tractors).