Russian Fur Coat Import Tariff Cut

The Russian government decided to reduce the import duty rate of fur coats from 20% to 10%.

The new rules involve both bulk commodities suppliers and natural persons pporting fur through customs. This refers to natural persons who carry fur more than tax exemption limits.

At present, smuggling of Russian mink coats, arctic fox fur coats and blue-green rabbit fur coats is becoming less and less.

Trade competition under the protection of law will further reduce the price of fur.

According to the current customs duty rate and value-added tax rate, the customs tax paid by the importer is equivalent to 40% of the cost of goods, which creates a strong driving force leading to corruption: the supplier uses the grey and black import means to reduce the cost.

That is to say, a large number of goods are imported by illegal means.

The national finance has suffered huge losses, and the commodities entering Russia through regular channels will also be sold to smuggled goods on the price.

Therefore, tariff reduction is necessary in order to purify imports.

A new measure in tariff policy is to calculate tariffs by units instead of batches.

This approach will make pactions more pparent.

But the more imports of legitimate goods, the more competitive it will be.

It is not excluded that importers will lower their prices in this case.

In addition, because of the reduction of costs, importers can also make liquidation and other profit making activities at the end of the season.

The producer alliance believes that this dual system can safeguard the interests of competitors of Russian leather importers, which refers to the leather traders who run low-priced fur coats, such as leather traders who sew fur coats with sheepskin.

Of course, it is not possible to exclude the possibility of considering this double standard.

The Russian government will monitor the measures implemented in a few months, and thereafter consider the issue of tax rates.