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Revenue Service Denies a Fraudulent Scheme through which Vehicles Brought from Germany to Georgia

The German Public Broadcaster has released information about a fraudulent net, through which unsafe vehicles are being brought from Germany to Georgia. The German Public Broadcaster carried out a journalistic investigation into the matter.

According to the Broadcaster, hundreds of cars that were cut in two after crashes in Germany are later brought to Georgia  in containers. German journalists tracked down one of such containers at Batumi port.

The cars are reconstructed in Georgia and sold as new cars. The average price of such a car in Georgia is 7,400 dollars.

The German Public Broadcaster says that the cars utilized in Germany are exported with similar methods mainly to Eastern Europe and Africa.

The expert Hans-Ulrich Sander talks about the risks caused by the   assembled vehicles. “The art of assembling, of course, is at the highest level, but in the end it’s still nothing more than a waste product. The safety is zero if such a car gets into an accident,”- says  the expert.

The Revenue Service says that a certain amount of the cut  in two cars really are brought in Georgia. However, despite the German investigation, the department says  these cars  are sold in parts and not as a vehicle.

According to them, cars enter undergo   special customs procedures  and in any case, the cut in two   cars can’t be registered as a vehicle  and get  a number plate because it is registered as a part of the car.

George Surguladze, Director  of the used-car dealer “Caucasus Auto Import,  notes that cars that were cut in two  are brought  in Georgia  by illegally operating dealers who  arrive in Germany, look for cut in two  vehicles,  load in containers and thus reduce transportation costs.

In his words, such dealers create problems for the legal companies in unfair competition by offering lower  prices.

In Surguladze’s opinion, the law should regulate such vehicles recovery in the licensed service centers.

He says  mainly  cheap  segment vehicles are brought  in this way which are sold on the market for $ 3 000-5 000.

Surguldze also notes that such vehicles are sold in the Rustavi auto  market and enter the  neighboring Azerbaijan, Armenia that  spoils the country’s name.

In addition, he adds that the crisis has affected car business but notes that  only 30-40% of  used cars are  re-exported, while the rest remain in the country.