Russian retailers have called for a reduction in the standard of living of Russians. They sent a letter to the Government asking to reduce the threshold for duty-free entry from the current 1,000 euros to just 200. If the request is fulfilled, then any purchase in foreign online stores more expensive than this amount, for example, a good smartphone, will be subject to an additional commission.
Retailers vs Russians
Russian retailers have made a proposal to increase pressure on the wallets of Russians. According to Izvestia, their idea is to reduce the duty-free threshold for importing goods purchased by Russian citizens in foreign stores by five times at once.
At the time of publication of the material, this threshold was 1000 euros (100.6 thousand rubles at the exchange rate of the Central Bank on March 21, 2024), while retailers want to reduce it immediately to 200 euros (20.1 thousand rubles). This idea was voiced to the Russian Government by the Association of Retail Companies (ACORT), the publication specifies.
As of March 21, 2024, ACORT, according to its official website, included 26 retailers. Among them: DNS, X5 Group (Pyaterochka, Perekrestok, etc.), Leroy Merlin, Kari, OBI, Sportmaster, Detsky Mir, Auchan, Azbuka Vkusa, Lenta, Magnit, M. Video-Eldorado etc.
Lowering the threshold of duty-free import means that if a Russian exceeds the limit of 200 euros when buying in a foreign online store, for example, orders a good smartphone there, he will have to pay an additional customs duty of 15% of the value of the goods. For example, buying a smartphone worth 50 thousand rubles in a Chinese online store. after lowering the threshold, it will lead to the fact that its price, taking into account the duty, will increase by 7,500 rubles.
AKORT suggests rushing to introduce such harsh measures against Russians. "We ask you to support ACORT's request to return the duty-free import of goods for individuals to 200 euros from April 1, 2024," the organization said in a letter sent to the Russian Government. There are already similar examples in Russia-Microsoft Corporation in mid-March 2024 announced that it would close access to its clouds to Russian businesses and gave them only six days to find an alternative and migrate the infrastructure.
The CNews editorial board asked representatives of Lenta, X5 Group, M. Video-Eldorado and a number of other companies from ACORT whether these companies specifically support such an initiative, regardless of ACORT, and are waiting for an answer.
Attempt to justify
The current threshold of 1,000 euros was introduced in March 2022, when hundreds of well-known brands of clothing, appliances, electronics and other goods beloved by Russians almost simultaneously left the Russian market due to well-known events. Up to this point, the threshold was 200 euros, and its five-fold increase was a decision of the authorities to prevent a possible shortage in the market during the sanctions period.
According to Izvestia, ACORT is confident that the goal has been achieved, and that it is quite possible to return the threshold to its previous values. The Association appealed personally to Russian Deputy Prime Minister Alexey Overchuk with the idea that it is no longer necessary to maintain the threshold at the level of 1000 euros.
Of course, the letter did not do without ideas to support the domestic manufacturer. According to the letter, ACORT is confident that two years after the start of well – known events and the departure of foreign brands from the country, Russian entrepreneurs were able to adapt to the sanctions, and parallel imports-legalized by the authorities "gray" imports, which work from May 2022 and negatively affect prices, also contributed to the fight against the deficit. The letter also says that Russian vendors of consumer goods have acquired new suppliers of raw materials and equipment.
In his letter, ACORT emphasizes that the refusal of the authorities to reduce the threshold of duty-free import by five times "will actually stimulate foreign producers." The Association believes that the current threshold allows foreign companies to import their goods without customs duties and other costs, and this, in turn, "negatively affects competition in the consumer market and creates the risk of expanding illegal turnover of goods."
Tacit consent of the authorities
The value of "1000 euros" in the column "size of the duty-free import threshold", as Izvestia writes, does not suit only AKORT. According to the source of the publication in the Federation Council, at least two Russian ministries are also in favor of reducing it to 200 euros.
This opinion is shared, at least, by the Ministry of Economic Development – the agency motivates the need for such a measure by the fact that the federal budget needs to be replenished with additional funds. Also at the end of February 2024, CNews wrote that the Ministry of Finance did not support maintaining the threshold at the current level of 1000 euros.
There are also those in government circles who believe that the threshold should be lowered, but not so quickly and not so radically. According to the source, the Ministry of Digital Development, the Ministry of Industry and Trade and the Federal Antimonopoly Service of Russia (FAS) are confident that the threshold should either be left at the level of 1000 euros, or gradually reduce it to 500 euros (50.3 thousand rubles).
Opinion "against"
Meanwhile, the head of the State Duma Committee on Information Policy, Information Technologies and Communications, Alexander Khinshtein, has a different opinion. He told the publication that in the current conditions, when the country was swallowed up by sanctions, the threshold of 1,000 euros " provides significant support to millions of citizens, helps to prevent a shortage of goods." He has no doubt that the need to pay customs duties when buying goods for personal use will result in a reduction in the number of orders from abroad. Among those who will suffer, according to Khinshtein, will be "Russian Post" – the fewer orders from abroad, the fewer parcels and lower the company's income.
Representatives of the largest marketplaces in Russia and the most popular among Russians also oppose lowering the threshold. For example, Ozon told CNews that maintaining the threshold at the current level over the past two years "has helped to ensure the demand of low-income Russians for inexpensive and popular goods from abroad, such as electronics, tools or automotive products." If the threshold is still lowered, then the Russians, as Ozon believes, " can refuse to buy if, taking into account the duty, the cost of the desired product is higher than they can afford." "Therefore, we count on a balanced decision of regulators in this matter," Ozon added.
"The reasons for introducing a duty – free trade threshold of 1,000 euros have not lost their relevance," Yandex Market representatives told CNews. - The current threshold of 1000 euros will allow low-income buyers to purchase goods at more affordable prices. Cross-border trade is a transparent alternative to the gray channel of supply of goods to Russia, which also receives counterfeit products. Most often, in the framework of cross-border trade, buyers order goods of brands that have "left" the country, and mainly those goods that have no alternative in Russia. Lowering the threshold can lead to a reduction in the number of products available, which ultimately affects customers to a greater extent."
"The threshold of duty-free import of goods allows consumers from Russia to buy the main categories of inexpensive products for personal use and prevent price increases," representatives of Wildberries told CNews. - Imports from abroad are growing steadily – customers most often order household goods, repairs and cars, clothing and shoes, and electronics. Lowering the threshold or refusing to apply it will significantly reduce the product range for buyers from Russia. Moreover, products that can only be ordered through e-commerce channels (for example, household and other appliances) may disappear from sale. Wildberries stands for keeping the threshold of duty-free trade at the same level and supports the initiative of the Consumers Union.
Retailers vs Russians
Russian retailers have made a proposal to increase pressure on the wallets of Russians. According to Izvestia, their idea is to reduce the duty-free threshold for importing goods purchased by Russian citizens in foreign stores by five times at once.
At the time of publication of the material, this threshold was 1000 euros (100.6 thousand rubles at the exchange rate of the Central Bank on March 21, 2024), while retailers want to reduce it immediately to 200 euros (20.1 thousand rubles). This idea was voiced to the Russian Government by the Association of Retail Companies (ACORT), the publication specifies.
As of March 21, 2024, ACORT, according to its official website, included 26 retailers. Among them: DNS, X5 Group (Pyaterochka, Perekrestok, etc.), Leroy Merlin, Kari, OBI, Sportmaster, Detsky Mir, Auchan, Azbuka Vkusa, Lenta, Magnit, M. Video-Eldorado etc.
Lowering the threshold of duty-free import means that if a Russian exceeds the limit of 200 euros when buying in a foreign online store, for example, orders a good smartphone there, he will have to pay an additional customs duty of 15% of the value of the goods. For example, buying a smartphone worth 50 thousand rubles in a Chinese online store. after lowering the threshold, it will lead to the fact that its price, taking into account the duty, will increase by 7,500 rubles.
AKORT suggests rushing to introduce such harsh measures against Russians. "We ask you to support ACORT's request to return the duty-free import of goods for individuals to 200 euros from April 1, 2024," the organization said in a letter sent to the Russian Government. There are already similar examples in Russia-Microsoft Corporation in mid-March 2024 announced that it would close access to its clouds to Russian businesses and gave them only six days to find an alternative and migrate the infrastructure.
The CNews editorial board asked representatives of Lenta, X5 Group, M. Video-Eldorado and a number of other companies from ACORT whether these companies specifically support such an initiative, regardless of ACORT, and are waiting for an answer.
Attempt to justify
The current threshold of 1,000 euros was introduced in March 2022, when hundreds of well-known brands of clothing, appliances, electronics and other goods beloved by Russians almost simultaneously left the Russian market due to well-known events. Up to this point, the threshold was 200 euros, and its five-fold increase was a decision of the authorities to prevent a possible shortage in the market during the sanctions period.
According to Izvestia, ACORT is confident that the goal has been achieved, and that it is quite possible to return the threshold to its previous values. The Association appealed personally to Russian Deputy Prime Minister Alexey Overchuk with the idea that it is no longer necessary to maintain the threshold at the level of 1000 euros.
Of course, the letter did not do without ideas to support the domestic manufacturer. According to the letter, ACORT is confident that two years after the start of well – known events and the departure of foreign brands from the country, Russian entrepreneurs were able to adapt to the sanctions, and parallel imports-legalized by the authorities "gray" imports, which work from May 2022 and negatively affect prices, also contributed to the fight against the deficit. The letter also says that Russian vendors of consumer goods have acquired new suppliers of raw materials and equipment.
In his letter, ACORT emphasizes that the refusal of the authorities to reduce the threshold of duty-free import by five times "will actually stimulate foreign producers." The Association believes that the current threshold allows foreign companies to import their goods without customs duties and other costs, and this, in turn, "negatively affects competition in the consumer market and creates the risk of expanding illegal turnover of goods."
Tacit consent of the authorities
The value of "1000 euros" in the column "size of the duty-free import threshold", as Izvestia writes, does not suit only AKORT. According to the source of the publication in the Federation Council, at least two Russian ministries are also in favor of reducing it to 200 euros.
This opinion is shared, at least, by the Ministry of Economic Development – the agency motivates the need for such a measure by the fact that the federal budget needs to be replenished with additional funds. Also at the end of February 2024, CNews wrote that the Ministry of Finance did not support maintaining the threshold at the current level of 1000 euros.
There are also those in government circles who believe that the threshold should be lowered, but not so quickly and not so radically. According to the source, the Ministry of Digital Development, the Ministry of Industry and Trade and the Federal Antimonopoly Service of Russia (FAS) are confident that the threshold should either be left at the level of 1000 euros, or gradually reduce it to 500 euros (50.3 thousand rubles).
Opinion "against"
Meanwhile, the head of the State Duma Committee on Information Policy, Information Technologies and Communications, Alexander Khinshtein, has a different opinion. He told the publication that in the current conditions, when the country was swallowed up by sanctions, the threshold of 1,000 euros " provides significant support to millions of citizens, helps to prevent a shortage of goods." He has no doubt that the need to pay customs duties when buying goods for personal use will result in a reduction in the number of orders from abroad. Among those who will suffer, according to Khinshtein, will be "Russian Post" – the fewer orders from abroad, the fewer parcels and lower the company's income.
Representatives of the largest marketplaces in Russia and the most popular among Russians also oppose lowering the threshold. For example, Ozon told CNews that maintaining the threshold at the current level over the past two years "has helped to ensure the demand of low-income Russians for inexpensive and popular goods from abroad, such as electronics, tools or automotive products." If the threshold is still lowered, then the Russians, as Ozon believes, " can refuse to buy if, taking into account the duty, the cost of the desired product is higher than they can afford." "Therefore, we count on a balanced decision of regulators in this matter," Ozon added.
"The reasons for introducing a duty – free trade threshold of 1,000 euros have not lost their relevance," Yandex Market representatives told CNews. - The current threshold of 1000 euros will allow low-income buyers to purchase goods at more affordable prices. Cross-border trade is a transparent alternative to the gray channel of supply of goods to Russia, which also receives counterfeit products. Most often, in the framework of cross-border trade, buyers order goods of brands that have "left" the country, and mainly those goods that have no alternative in Russia. Lowering the threshold can lead to a reduction in the number of products available, which ultimately affects customers to a greater extent."
"The threshold of duty-free import of goods allows consumers from Russia to buy the main categories of inexpensive products for personal use and prevent price increases," representatives of Wildberries told CNews. - Imports from abroad are growing steadily – customers most often order household goods, repairs and cars, clothing and shoes, and electronics. Lowering the threshold or refusing to apply it will significantly reduce the product range for buyers from Russia. Moreover, products that can only be ordered through e-commerce channels (for example, household and other appliances) may disappear from sale. Wildberries stands for keeping the threshold of duty-free trade at the same level and supports the initiative of the Consumers Union.
