Saturday, December 20, 2014
 
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Government Extendeds Customs Duty to Combat Foreign Advantage

Published: June 20, 2014 (Issue # 1816)



  • A staff member leaving a customs control zone.
    Photo: A. Makhonin / Vedomosti

The Finance Ministry on Friday published a draft of a long-awaited bill that could lower the limit on the value of personal purchases that can enter Russia customs-free from 1,000 euros ($1360) to 150 euros ($204).

Russia-based Internet retailers have long complained that the current threshold gives foreign retailers an unfair advantage, allowing them to slash prices below those offered by domestic retailers, who have to pay taxes and customs duties on the goods they import to Russia.

At President Vladimir Putin's meeting with Internet businesses in early June, Maelle Gavet, CEO of Internet giant Ozon, said that Russia was losing 98 billion rubles a year ($2.8 billion) due to poor regulation of goods sold over the Internet by foreign e-commerce companies.

"In the rest of the world, the threshold value [for customs duties] is from 0 to 10 euros ($14)," Gavet said, RIA Novosti reported. "Law-abiding Russian stores, unlike their foreign colleagues, pay the legally necessary taxes and duties. Because of this it is becoming more and more difficult to compete on prices."

Putin responded that all companies who import goods across the border should face "identical conditions." The president signed a law in May that gave the government the right to change the parameters for customs-free imports.

The customs duty has become a hot topic in the e-commerce industry as cross-border trade expands its share of the market at a lightening rate. Cross-border trade more than doubled in 2014, reaching 20 percent of the total volume of e-commerce in Russia, while the market as a whole continued to grow at a rate of about 30 percent yearly, according to the Association of Online Vendors, or AKIT.

AKIT, whose members include such heavy-hitting online retailers as Ulmart, KupiVIP and Lamoda, has repeatedly complained that the current situation encourages domestic retailers to evade taxes and customs duties in order to offer competitively low prices.

In addition to the new 150-euro limit, the Finance Ministry's bill, which was published Friday on the government's legislation portal, requires a customs duty on all goods that weigh in at more than 10 kilograms, down from the current limit of 31 kilograms. The customs duty in Russia stands at 30 percent of the value of the imported good.





 


ALL ABOUT TOWN

Saturday, Dec. 20


The city’s Babushkina Park on Prospekt Obukhovskoy Oborony will be invaded by dozens of rocking-and-rolling Santa Clauses during today’s Santa Claus Parade. Not only will they parade through the park but there will also be competitions amongst the festively-clad participants and a musical master class. There will also be a prize for the best-dressed Santa Claus.


Add to your record collection during the Vinyl Christmas Sale at the KL10TCH bar on Konyushennaya Ploshchad today. Spend the afternoon perusing the records for sale while listening the classic, clean sound of records spinning out hits from a variety of musical genres and time periods.



Sunday, Dec. 21


The Zenit St. Petersburg basketball team returns to the northern capital this evening for a matchup with Krasny Oktyabr, a Volgograd-based basketball club. Tickets for the game, which tips off at 6 p.m. this evening, can be purchased on the club’s website or at their arena, Sibur Arena, on Krestovsky island.


Satisfy your sugar cravings during Sweet New Year, an ongoing seasonal festival at the Raduga shopping center. Each weekend of December will welcome hungry visitors to taste hundreds of different kinds of desserts made from a plethora of sweet treats. Workshops are open to visitors and seasonal gifts can also be purchased for those rushing to finish their New Year shopping.



Monday, Dec. 22


Pick out the latest fashions as holiday gifts for loved ones or as early presents for yourself during the Christmas Design Sale at Kraft on Obvodny Kanal, starting on Dec. 20 and continuing through Dec. 27. Designer clothes will be on sale every day of the week or you can buy something more festive to decorate the home while sipping on hot coffee and perusing the various master classes.



Tuesday, Dec. 23


Meet Arctic explorers Fedor Konukhov and Viktor Simonov during SPIBA’s and Capital Legal Service’s event “Arctic Expedition” this morning in the Mertens House business center at 21 Nevsky Prospekt. The meeting will discuss the explorers’ ongoing eco-social project and how companies can use the project as a unique marketing opportunity. Email office@spiba.ru by Dec. 22 if you wish to attend.



Wednesday, Dec. 24


The Anglican Church of St. Petersburg we will be holding a Christmas Eve service at 7 p.m. led by Rev Wm. Shepley Curtis of the Episcopal Church. The service will be held at the Swedish Church at 1/3 Malaya Konyushennaya Ulitsa.



To have your event included in All About Town, email tot@sptimes.ru



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