The Russian government has imposed import duties on some goods from “non-enemy” countries. The relevant resolution signed by Prime Minister Mikhail Mishustin published December 9, on the state legal information portal.
“Until December 31, 2023, approve additional rates of import customs duties, except for rates of Common Customs duties, on certain goods whose countries of origin are states and territories that take measures in violation of the economic interests of the Russian Federation. Eurasian Economic Union Customs Tariff”.
The new taxes are 35%. They are installed in 14 product categories, including shampoos, dentifrices, shaving products, deodorants, detergents and cleaners, incense, smooth and rifled guns, sports rifles, flares and pistols, cartridges for smoothbore guns and their parts.
As announced by the Ministry of Industry and Trade, for all such goods there are domestic analogues that are in no way inferior to foreign ones in terms of quality or assortment. The department noted that it is not planned to increase taxes on cosmetics and perfumes from hostile countries, and the demand that Russian manufacturers have not yet met.
“While 60 percent of the total imports of these products are supplied to Russia from European Union countries, the volume of supply from six countries does not exceed 8 percent for the products that have been decided to increase the tax. The ministry added that it has a 15% share and covers a narrow “niche” segment of brands, mainly in the premium price category.
The decision will enter into force five days after its publication. Control over its implementation is entrusted to the Federal Customs Service.
The list of non-friendly countries was approved by the Russian Cabinet in early March in response to the sanctions imposed on Moscow. The list includes all 27 countries – members of the European Union, UK, Australia, USA, Canada, Norway, Switzerland, Japan, South Korea, Liechtenstein, Micronesia, Monaco, New Zealand, San Marino, North Macedonia, Singapore, Taiwan, Ukraine and Montenegro. In July, the list was expanded to include the Bahamas and the islands of Guernsey and Man, which support British sanctions. In October, 11 British territories were added to the list.
Early on December 9, even before the government decree was issued, Izvestiya cites a source at the Ministry of Industry and Trade. reportedIt has been reported that local companies under the auspices of the “National Council of Perfumery, Cosmetics and Household Chemistry” applied to the ministry with a proposal to impose a protective tax on deodorants, toothpaste and dishwashing detergents from unfriendly countries.
We are talking about the goods that were produced in Russia before but started to be imported as finished products after the departure of the Western companies. In particular, local manufacturers offered to impose additional import duties on the products of the brands Gillette, Old Spice, Fairy, Oriflame, Colgate, Nivea. Products of these brands, which are now subject to 35% tax, are mainly produced in the USA, Canada, England, Australia, New Zealand and Poland.
The industry association noted that such taxes are a mirrored response to Western countries’ imposition of a 35% tax on Russian products.
“Products under Western brands were produced in the Russian Federation – foreign companies rented facilities where they produced their products from imported raw materials (i.e. contract manufacturing). But in the spring of 2022, all logistics collapsed, so it became more profitable for manufacturers to import ready-made goods to Russia, ”explained the National Council of Perfumery, Cosmetics and Household Chemistry.
The Ministry of Industry and Trade told Izvestia that the capacities of Russian enterprises exceed imports from the proposed list of unfriendly countries by at most 62 times, depending on location. The source of the publication noted that after the introduction of the tax, the price of all the above brands listed on the list will increase in proportion to the value of their goods.
Russia began raising customs duties and banning the import of goods from Western countries as counter-sanctions in 2015. But this year, in response to the new restriction packages, Moscow did not begin to expand the list of goods and food products that are prohibited from being imported into the territory of Russia.