Tuesday, September 18, 2007

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12/07/2007 | Moscow News,№ 27 2007
Crackdown on ‘Gray Market’ Electronic Goods
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The Russian authorities have decided to fight against the illegal imports of electronic goods with a classic carrot-and-stick approach. On the one hand, they have passed a resolution temporarily scrapping import duties on digital cameras and cellular-phone components; on the other, customs will now record the serial numbers of all laptops and other digital items imported into Russia. As for the vendors of consumer electronics, they have taken the initiative to take measures to ‘cleanse' their market, and have signed a memorandum to that effect.

Zero Import Duties

The Economic Development and Trade Ministry (MERT) has proposed radical measures to combat illegal imports of cellphones. According to Galina Balandina, head of the ministry's foreign trade activities, the ministry has worked out two versions of an amendment to customs legislation with respect to cellphones: (1) to zero the current 5 percent import duty on ready-made cellphones; (2) to reduce import duties on cellphone components from the current 5-20 percent to 0-5 percent. However, the ministry's proposal was opposed by the Industry and Energy Ministry, which asserts that duty abolition will not help the cellphone market to get rid of ‘gray' schemes, and that under the pretext of importing cellphone components, unscrupulous businessmen will bring in other more expensive devices. After hearing the proposals of the two ministries, the Inter­departmental Commission for Protective Measures in Foreign Trade put forward a compromise version: Abolish import duties on cellphone components for nine months, but limit the exemption to chips and storage batteries only, not all components.

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