BISNIS - former Soviet Division

30 JUN 95

American Embassy-Moscow


IMI: RUSSIA INTRODUCES NEW IMPORT TARIFFS


1. SUMMARY. IN MAY 1995, THE RUSSIAN GOVERNMENT INTRODUCED A NEW IMPORT TARIFF SCHEDULE. ACCORDING TO THIS SCHEDULE, THE BULK OF THE TARIFFS REMAINED THE SAME. TARIFFS ON SOME PRODUCTS WERE LOWERED AND, ON SOME RAISED. OVERALL, MEAN IMPORT TARIFF WAS RAISED. CONSUMER PRODUCTS, ESPECIALLY FOOD PRODUCTS WERE MOST AFFECTED. END SUMMARY.

2. INTRODUCTION OF NEW IMPORT TARIFF SCHEDULES APPEARS TO BECOMING AN ANNUAL EVENT. ALONG WITH THIS TREND IS THE FACT THAT IMPORT TARIFFS ARE BEING RAISED. ACCORDING TO VICE PRIME MINISTER OF RUSSIA OLEG DAVYDOV, THE MEAN 1995 IMPORT TARIFF WENT UP FROM 11.4 PERCENT TO 12.5 PERCENT. ALTHOUGH A NUMBER OF PRODUCTS ENJOYED LOWER TARIFFS, HIGHER TARIFFS WERE IMPOSED ON MOST DEMANDED IMPORTED GOODS, ESPECIALLY ON FOOD PRODUCTS. WITH THESE CHANGES, THE RUSSIAN GOVERNMENT HAS RAISED THE MINIMUM DUTY TO 5 PERCENT, EXCEPT FOR A REDUCED NUMBER OF DUTY-FREE GOODS (AT ZERO PERCENT), AND LOWERED THE MAXIMUM DUTY TO 30 PERCENT, EXCEPT FOR A FEW "LUXURY" GOODS.

3. ACCORDING TO THE RUSSIAN GOVERNMENT DECREE, NUMBER 454 OF MAY 6, 1995, THOSE IMPORT TARIFFS REDUCED OR NOT CHANGED COME INTO EFFECT ON MAY 10, 1995. THE REST OF IMPORT TARIFF SCHEDULE (WITH HIGHER TARIFFS) WILL BECOME EFFECTIVE JULY 1, 1995. FOLLOWING IS A LIST OF SOME, MOST POPULAR IMPORTS ON WHICH TARIFFS WERE CHANGED:

A)
  REDUCED IMPORT TARIFFS (IN EFFECT, MAY 10, 1995)

HCODE     PRODUCT NAME                IMPORT TARIFF
                                            1994      1995
-------------------------------------------------
290539-   ORGANIC CHEMICALS                    1         0
29291000
36        EXPLOSIVES,                        100        30
          PYROTECHNICAL MEANS,
          MATCHES
4012      AUTOMOBILE TIRES,                   40        30
          RETREADED OR USED
51        WOOL                                25        20
57        CARPETS, OTHER FLOOR                40        30
          COVERINGS
(BUT NOT LESS THAN 0.5 ECU PER 1 CUBIC METER)
7117      JEWELRY                             60        30
(BUT NOT LESS THAN 6 ECU PER 1 KILOGRAM)
8477      PLASTICS AND RUBBER                  5         0
          PROCESSING EQUIPMENT
850410    THROTTLES FOR DISCHARGE             60        25
          TUBES OR PIPES
850431    TRANSFORMERS WITH UNDER             60        30
          1 KWT CAPACITY
85051     MAGNETS                             60        30
85232     MAGNETIC DISKETTES,                  2         0
          UNLOADED
8532      CONDENSERS                          60        25
8533      RESISTORS                           60        20
854011-   ELECTRONIC-RAY TUBES                60        20
854012    FOR TV MONITORS
8541      DIODES, TRANSISTORS,                60        25
          SEMICONDUCTORS
854211    INTEGRATED CIRCUITS,                60        30
          DIGITAL
854220    INTEGRATED CIRCUITS,                60        20
          HYBRID
87032319  PASSENGER CARS WITH                 46        30
          ENGINE UNDER 3,000
          CUBIC CENTIMETER (CC)
(BUT NOT LESS THAN 1.9 ECU PER 1 CC)
8703241   PASSENGER CARS WITH                 46        40
          ENGINE OVER 3,000 CC
(BUT NOT LESS THAN 3.1 ECU PER CC)
88        AIRCRAFT, SPACECRAFT,               50        30
          ITS COMPONENTS
9003191   GLASS FRAMES, MADE OF               60        40
          PRECIOUS METALS
9111      WATCH HOUSINGS                      15        10
911100    WATCH HOUSINGS, MADE OF             60        25
          PRECIOUS METALS
91131
          WATCH BRACELETS,                    60        30
          MADE OF PRECIOUS METALS
9507      FISHING AND HUNTING                 20        10
          ACCESSORIES
960810-   BALL AND FOUNTAIN                   60        40
960839    PENS, MADE OF PRECIOUS
          METALS
B)
  RAISED IMPORT TARIFF (IN EFFECT, JULY 1, 1995)

HCODE     PRODUCT NAME             IMPORT TARIFFS
                                    1994      1995
-------------------------------------------------
0207      CHICKEN MEAT               20        25
03        FISH PRODUCTS               5        10
040210    MILK, CREAM IN POWDER       2        10
          AND GRANULES
040500    BUTTER AND MILK FAT        15        20
05        ANIMAL PRODUC               5        10
07        VEGETABLES                  5        15
08        EDIBLE FRUITS AND NUTS      1        10
090121    ROASTED GROUND COFFEE       0        10
15        FATS, OILS                  5        15
170199    WHITE SUGAR                20        25
1704      SUGAR CONFECTIONERY        15        20
20057     OLIVES                      0        10
2009      FRUIT AND VEGETABLE         5        10
          JUICE
2201      MINERAL WATER              10        20
230910    PET FOOD                   15        25
30        PHARMACEUTICALS             0        10
3305      HAIR-CARE PRODUCTS          5        15
40111     AUTOMOBILE TIRES, NEW      18        25
41        RAW HIDES AND LEATHER       1         5
430310    FUR CLOTHING               20        30
851710    TELEPHONE APPARATUS        20        25
8520      TAPE RECORDERS             25        30
8521      VIDEO RECORDING EQUIP.     25        30
854470    FIBER OPTIC CABLES          2        15
8711      MOTORCYCLES,               20        25
          MOTORBICYCLES
9003      GLASS FRAMES                0        10
94        FURNITURE AND ITS          20        30
          ACCESSORIES
4. IN GENERAL, THE NEW IMPORT TARIFF SCHEDULE BECAME MORE RESTRICTIVE FOR RUSSIAN IMPORTERS, MORE PROTECTIVE FOR RUSSIAN PRODUCERS, AND MORE COSTLY FOR RUSSIAN CONSUMERS. SUCH PRODUCTS AS AUTOMOBILES, CARPETS, JEWELRY, CLOTHING, TV RECEIVERS, SAUSAGES, CHEWING GUM, CIGARETTES, ETC. WHICH HAVE REDUCED OR NOT CHANGED TARIFFS, NOW ARE SUBJECT TO ECU CONDITION WHICH MAKES THE ACTUAL DUTY EVEN HIGHER. FOR EXAMPLE, THE IMPORT TARIFF ON AUTOMOBILES WAS LOWERED IN PERCENT. HOWEVER, THE BOTTOM-LINE DUTY SHOULD BE CALCULATED IN ECU, PER CUBIC CENTIMETER OF THE ENGINE. THIS WAY, THE ACTUAL IMPORT DUTY ON AUTOMOBILES IN SOME CASES GOES UP RATHER THAN DOWN.