What is the trend in importing cars from South Korea to Kosovo?

The value of car imports from South Korea has increased drastically in recent years in Kosovo. According to Kosovo Customs data, the value of imports of these cars in 2023 was over 9 million euros, while in 2024 the figure reached 69 million euros.

Based on this data in 2021, the value of car imports from South Korea to Kosovo was only 46 thousand euros.

"This was something new for us too," said the director of Kosovo Customs, Agron Llugaliu, on the show "KallxoPërnime".

Value of car imports from South Korea

Llugaliu said that after the increase in the trend of importing cars from South Korea, there had been complaints from citizens about the catalog that was used for their customs clearance.

Because the cars from South Korea, says Llugaliu, were identical to those from the European Union, that catalog was used.

"We have come to the conclusion that because they have overproduction with local products in South Korea, it is a competition for the automotive industry to have their presence in Korea. The standard that they tend to have new cars also affects. We have had a lot of complaints because we use a catalog that is very accurate in terms of the value of the car in the German market. Used cars are a problem and not new ones. Cars from Korea are used. And with used cars it is very easy to underestimate to avoid taxes, we use a catalog for this. Because this is an identical product to the EU product, we have applied the same with the catalog of EU countries. The market value has been the same as in the EU," he said.

Llugaliu announced that this has changed for a month now. Now, cars imported from Korea will be cleared at a lower value.

"Because we saw that complaints were increasing and we had the decision of the Commercial Court that was in favor of the parties. And we came to a decision that used cars coming from Korea are much cheaper than the European market, on average 25% due to the very high competition. We reduced the value of the product. This has been happening for approximately a month. Now we are based on an average. In cases where they have a real value that does not exceed this 25% under the European catalog, the value is accepted. Most have complained, some have won, some have not," said Llugaliu.

From July to August 2024 alone, Kosovo Customs received 443 complaints from various citizens regarding assessments regarding vehicles imported from South Korea.

According to Kosovo Customs, during 2024 alone, 5 vehicles were imported to Kosovo from South Korea, with a total value of 102 million 69 thousand euros. From these imported vehicles, Customs collected 242 million 6 thousand euros in customs duty; 806 million 2 thousand euros in excise duty and 849 million 14 euros in VAT./Kallxo.com/