RUSSIA: COUNTRY COMMERCIAL GUIDE
VI. TRADE REGULATIONS AND STANDARDS
Trade Barriers
Introduction of new import tariff schedules is, apparently, becoming an
annual event in Russia. Along with this trend is the fact that import
tariffs are being raised. In July 1995, Russia introduced a new import
tariff schedule. The mean 1995 import tariff went up from 11.4% to 12.5%.
Although a number of products received lower tariffs, higher tariffs were
imposed on imported goods in most demand, especially food products. With
these changes, the Russian government has raised the minimum duty to 5%,
except for a reduced number of duty-free goods, and lowered the maximum
duty to 30%, except for a few luxury goods.
Besides import tariffs, there are two other types of duties applied to
imported goods: excise tax and value-added-tax (VAT). Excise tax applies to
a number of luxury goods, such as alcohol, cigarettes, cars, etc. It varies
from 10% to 250%. The VAT rate of 23 percent (which is in reality a 20
percent VAT plus a three percent "special tax" ) is applied to the import
price plus tariff plus excise tax.
Customs Valuation
Customs duties are payable on the customs value of goods in hard currency
or rubles at the current exchange rate. The customs value is generally
considered to be the CIF price of the goods imported. A customs processing
fee of 0.15% of the actual cost of the goods is also levied. The fee for
temporary imports is rubles 1,000. According to customs regulations,
customs processing should take not longer than one month. If acceptance of
goods is refused by Russian Customs, regulations call for the goods to be
returned to the country of origin.
Import Licenses
Import licenses are required for importation of various goods including
combat and sporting weapons, self-defense articles, explosives, military
and ciphering equipment, radioactive materials and waste including uranium,
strong poisons and narcotics, and precious metals, alloys and stones. Most
import licenses are issued by the Russian Ministry of Foreign Economic
Relations or its regional branches, and controlled by the State Customs
Committee. Import licenses for sporting weapons and self-defense articles
are issued by the Ministry of Internal Affairs.
Export Controls
Before 1995, exports of "strategically important raw materials" such as oil
and gas, non-ferrous metals, fertilizers, cellulose, grain, fish products,
rough diamonds and electric power required special export licenses issued
by the Russian Ministry of Foreign Economic Relations (MINFER) to a limited
number of exporters. A presidential decree, number 245 (article 2) of March
6, 1995 lifted this restriction, allowing the export of "strategically
important raw materials" from Russia without special permission of MINFER.
The decree also abolished the list of "special exporters." However, export
of weapons, military equipment and dual-use materials and technology
continues to require an export license. Exports of "strategically important
raw materials" still require registration with MINFER.
Import/Export Documentation
Importers are required to complete a customs freight declaration for every
item imported. The declaration form consists of 54 paragraphs and should be
completed in the Russian language for presentation to customs authorities.
Certificates of origin and conformity (see "Standards" below) should also
be presented at customs. Similarly, exporters are required to complete an
export declaration and, if necessary, present the appropriate export
license at customs.
Temporary Entry
Temporary imports by foreign companies which are accredited with Russian
government authorities are exempt from customs duties. This applies to
goods imported only for company use and for one year only. Companies not
accredited with Russian government authorities are charged 3 percent of the
total cost of the product on a monthly basis. In this case, total cost
equals original product price plus all import taxes.
Labeling, Marking Requirements
No special labeling or marking requirements are in effect.
Prohibited Imports
The customs code lists no products which are prohibited from import under
any circumstance.
Standards
Many products imported for sale into the Russian Federation are required to
have a certificate of conformity issued by the Russian State Committee on
Standards (Gosstandart). Gosstandart tests and certifies products according
to Russian Government standards, rather than other widely-accepted
international standards (i.e. the ISO-9000 system). Gosstandart and its
authorized agents are the sole sources for certification in Russia.
Testing protocols from the IECEE (electrical equipment) and the IECQ
(electrical components), both of which fall under the International
Electrotechnical Commission, from Underwriters Laboratories, and other
bodies are accepted by Gosstandart and help to expedite certification by
the Russian agency. The certificate of conformity is valid for 3 years and
must accompany every shipment. Copies of the certificate are acceptable if
original seals of the U.S. company holding the original certificate
accompany the copy. Russian retailers are obliged to have on hand
certificates for all imported products sold in their stores; violation of
this requirement can bring penalties of up to the equivalent $10,000.
Free Trade Zones/Warehouses
There are no actual free trade zones in Russia. There are some free
economic zones designed to encourage investments in specific areas, as well
as free customs zones and free warehouses. Customs duties do not apply in
free customs zones and free warehouses. Some production and commercial
transactions can take place within these zones, but not retail sales. The
storage period is not limited. Free customs zones and free warehouses are
located in customs areas (airports, seaports, railway, and truck
terminals).
Special Import Provisions
No special import provisions apply.
Membership in Free Trade Arrangements
Russia does not participate in any free trade arrangements. Russia has an
association agreement with the European Union, proposes to join the
GATT/WTO, and benefits currently from GSP and MFN status in the United
States.
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