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    Russia'S Trade Tariffs On Chinese Shoes And Clothing Are Expected To Drop By 3.5%

    2012/7/28 11:03:00 20

    RussiaChinaTrade Tariffs

    After 19 years of long-distance running,

    Russia

    Maxim Medvedkov, director of the Department of trade negotiations of the Ministry of economic development, said in July 23rd that Russia will become a member of the WTO in August 23rd.


    At present, most experts have said that this will provide a good opportunity for Sino Russian economic cooperation. After Russia's accession to the WTO, an important change is that the trade threshold will gradually decrease, which will help the circulation of commodities between China and Russia.


    There is publicly available data showing that after the entry of WTO, the tariff protection level of Russia will decline by an average of 3.5%, and this decline is progressively progressive.

    The current weighted average tax rate is 9.5%, which will drop to 7.6% in 2013, 6.9% in 2014, and 6% in 2015.

    For Chinese companies, such changes can reduce their export costs and increase the export of superior products, such as clothing, textiles, footwear and household appliances.


    Trade in Russia's shoes and clothing products or there is a turning point.


    Yesterday, during the Moscow study in Moscow, Mr. Zhao, who was specialized in trade with Russia, told the Securities Daily that Russia had less competitiveness in manufacturing than in energy, especially clothing.

    footwear

    Textiles, electrical appliances and other light industry manufacturing industries, which are relatively competitive in China.

    It will obviously reduce the tariffs of some industries.


    When asked after the accession to the WTO, did Mr. Zhao's trade with Russia change the tariff? "Because the trade item I am engaged in is the auto repair parts, and the trade quota is relatively small. From the current situation, even if Russia joins the WTO, it will not have a great impact on my current work, but on the contrary, the clothing trade will be well affected."

    Mr. Zhao said frankly.


    Karpov, the boss of Moscow TTC trading company, told reporters: "Russia's accession to WTO is both an opportunity for China and Russia. Trade activities between the two sides will be more frequent. For Russian traders, tariffs will be reduced and costs will be reduced after importing from China."


    According to the relevant statistics, the bilateral trade volume of China and Russia in 2011 is more than 83 billion US dollars. The two countries plan to increase bilateral trade by 17 billion US dollars in the next three years, to reach $100 billion, and to reach 200 billion US dollars by 2020.

    The above data indicate that Sino Russian trade relations are strategic partnership, while China ranks second in Russia's current trading partners. By 2015, China is expected to surpass the EU as Russia's largest trading partner.


    Yesterday, Xiao Li, who was once in the biggest Chinese market in Moscow, told reporters that in recent years, it was becoming more and more difficult to make clothes business in Russia. Before that, the tariff of wool textile was 12% and the duty of leather clothing was 30%.

    The fall in tariffs is enough to reduce the export costs of Chinese enterprises.

    After Russia's accession to the WTO, it is expected to reverse this situation.

    "Although tariffs will be reduced, it is not known whether the business is good or not. After the entry of WTO, the effect is gradually reflected, but at least" grey customs clearance "may become a history.


    Gray customs clearance will become history


    Once, for the sake of Chinese businessmen and made in China, Russia is certainly a huge one.

    market

    But risks remain and are not small.

    The biggest risk is "grey customs clearance".


    Since the disintegration of the Soviet Union in early 90s twentieth Century, a large number of cheap goods were urgently needed, so a large number of Chinese businessmen began to engage in private trade between China and Russia.

    However, customs clearance is cumbersome and customs duties are chaotic. In order to encourage imports and simplify customs procedures, the Russian Customs Committee allows the "clearance" company to act as an agent for the importing business.

    {page_break}


    These companies, together with customs officials, have cleared the entire aircraft of goods by parcel clearance.

    According to reporters in Moscow, such customs clearance is usually two or three times cheaper than regular customs duties.

    Later, this way of customs clearance was extended to shipping, iron pportation and motor pport, collectively referred to as "gray customs clearance".


    A major consequence of the "grey customs clearance" is that the Russian customs clearance company colluded with some customs and lied or concealed goods to evade taxes, resulting in the lack of legal status when goods entered Russia.

    In 2009, the Russian government closed the Moscow market, and almost all of the $2 billion goods seized were entered into the Russian market through "grey customs clearance".


    Then, what is the trouble of going through the normal way without "grey customs clearance"? Generally speaking, the "white customs" tariff is high, slow and inefficient, plus the widespread corruption in Russian customs. It is difficult to avoid "grey customs clearance". Moreover, if the normal way is taken, the staff of Russian customs will not get "oil and water", so their officials also encourage "gray customs clearance" in disguise.

    Xiao Li said so.


    For Russia's formal accession to the WTO in August 23rd, the "grey customs clearance" is expected to become a history.

    Russia

    Economics

    Biello Usov, Minister of development, said that after accession to the WTO, the average level of protective tariffs in Russia would decrease year by year, from 9.5% to 7.6% in 2013, to 6.9% in 2014 and 6% in 2015.


    For this reason, some scholars believe that Russia will have normal customs channels and market environment, and Chinese businessmen need to tolerate immature business environment.

    In the next 3 to 5 years, Russia will establish a mature business environment and mechanism, which is a great opportunity for Chinese businessmen.

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