
The tax for importing used rubber tires is the same as for new ones. A total of 15 percent tax including 5 percent import duty and 10 percent value added tax is imposed on the item. However although the importing rate of used old rubber tires is five times higher than the new ones, the tax collected is less. This means a large sum of used old rubber tires, that are not considered hazardous in Mongolia, but are banned from use as vehicle tires are banned from the trash for other reasons internationally, are being imported for almost free. According to the report by the Mongolian Customs General Administration the customs valuation for used old rubber tire is between 9-14 US dollars. Almost 80 percent of those used old rubber tires come from South Korea and Japan to Mongolia.
At Uguumur Auto parts market in Ulaanbaatar the tire business is at its height due to the winter season. There are numerous counters that offer all different types of used car tires at the auto parts market, however only a few people sell the new ones. Generally, a used winter tire costs around 50-70 thousand MNT.
Used tires of Toyota Prius, the most popular car make in Mongolia, is offered at the most reasonable price among them at 45-55 thousand MNT. Used tires of Jeep cost about 150 thousand MNT and above.
Usually the imported used tires in Mongolia are classified as 50-70 percent used. New tires of compact cars cost from around 100 thousand MNT each and truck and jeep tires cost around 300 thousand MNT each.
Some countries consider used tires as hazardous waste and ban the import of used tires.
But currently there is no ban of used tires import in Mongolia even though their use causes environmental pollution due to the chemical ingredients that are released during burning. Several parts of ger districts in Ulaanbaatar burn rubber to make fire during winter time and contribute to air pollution.